NAB has backed a pay app that its Australian creators say will give workers early access to their earnings while serving as an alternative to predatory loans.
The founders of Earnd said they had raised $2.5 million in funding for their on-demand pay app, which lets people use some of their wages – if their employer signs up – before they formally get their salary.
‘Earnd is empowering Aussies to decide the frequency of their pay cycles by shifting their monthly or fortnightly schedules to something more manageable, such as weekly,’ chief executive officer Josh Vernon said.
The company allows users to access up to half of their accrued income through the app, with the limit in place ‘to ensure we’re supporting responsible spending’.
Earnd attracted investment and help from NAB Ventures, BPAY chief executive officer John Banfield and MYOB chief operating officer Andrew Birch.
‘This is a unique solution that enables people instant access to their pay,’ NAB Ventures managing director Todd Forest said.
Mr Forest, who will join Earnd’s board as part of the investment, said the app ‘enhances employee financial resilience and higher engagement with their employer’.