Naspers Foundry, technology giant Naspers’s R1.4-billion South African-focused technology investment vehicle, said on Tuesday that it will invest R15-million in Cape Town-based Floatplays, an “on-demand earned wage access platform”.
Floatpays gives salaried customers on-demand access to a portion of their earned income to cover unplanned expenses, allowing them to lower their reliance on debt.
Floatpays is Naspers Foundry’s third fintech investment and takes the growing portfolio to nine South Africa-focused early-stage technology companies.
“Floatpays provides customers with real-time access to a portion of their earned but not yet paid income at any time during the month, giving them an alternative to using credit to cover unplanned expenses,” Naspers said in a statement.
The Floatpays technology integrates with a company’s existing payroll system, allowing employees to access a portion of their earned pay at any point during the pay cycle.
“The solution can reduce financial stress, helping employees avoid expensive credit, payday lenders, and borrowing from family or friends when they need funds to make it to payday,” Naspers said.
The solution for employees is available on smartphones and feature phones through an app on iOS or Android, or via USSD. Employees can access their withdrawals through Floatpays’ instant money vouchers and via EFT.
“Employees can use their earned pay to buy living essentials such as prepaid vouchers for mobile data, airtime, electricity or medical care via the app or USSD,” Naspers said.
“On-demand earned wage access is fast-growing within the fintech sector. While still nascent in South Africa, there is significant potential for Floatpays, which is focused on serving the underbanked,” said Naspers Foundry head Fabian Whate.
Floatpays was founded in 2019 by CEO Simon Ward. The parties did not disclose the stake that Naspers Foundry has taken taking in the start-up. – © 2022 NewsCentral Media