I am leading BizDev at Payflow, I joined due to ethical reasons & social impact. Happen to be that I am southamerican and pretty familiar with people living paycheck to paycheck.
The reason why they are better off is because we are the only alternative that is free for them:
Credit cards, loans, etc are not zero-rate. Far from that a loanshark can charge up to 3000% for a short term loan in LATAM.
We are bringing employers into the game, to actually do something and pay so that their employees get the zero-rate that is so popular for high income workers through their cards or banks.
What reduces your purchasing power is financial expenses, not accessing your money earlier.
We won't solve every money problem, but at least we are solving some and reducing low income workers exposure to predatory finance.
Hope you appreciate my answer, it was 100% sincere.
Fede :)
We are indeed aiming for low income worker population in LATAM and your calculus is right:
- Here we see around 50Euros for a salary of 900/1000 so around 5 to 7% of your salary withdrawn.
- We would expect even smaller quantities in LATAM.
App is super lean and accessible by every phone and building trust among our community (users & companies) is key.