• Ruwaydah Harris

Is it payday yet?

MORE month than money has become a bleak reality for Sam. Just two weeks after his much anticipated payday Sam had a seismic shift from “Socially Active Man” to feeling “Severely Anxious about Money”. Sam wonders if payday can come a little sooner…

In a population of 59 million people, Sam is part of the staggering 76%* who spend their monthly salary by the 15th of the month. After paying rent or a bond, stocking up on groceries, paying school fees and transport costs, the majority of South Africans are left cash-strapped until the next paycheque. Taking on more debt appears to be the only option. So, 59% of South Africans resort to borrowing money from family and friends, while 20% get into credit card debt and 9% take out loans. These are often unsecured loans at an inflated interest rate of *225% for one-month loans or 34% for five-year loans. An increase in unsecured loans has led to bad credit records for more than four out of 10 South Africans according to the National Credit Regulator (NCR).

With more debt to repay, the countdown to the next payday begins...

Fast Forward Payday

Sam works hard for his randelas, but his paycheque often doesn’t stretch as far as the month. Fortunately, with the help of a new platform, Sam is now able to fast forward payday. Here’s how… Sam’s employer signed up to LEVEL, an innovative new platform designed by groundbreaking entrepreneurs who are disrupting the formal and informal payday lending industry. They’ve made it their mission to empower lower and middle-income workers like Sam with the financial muscle to avoid exploitative micro lenders and loan sharks.

The best part is that Sam’s not getting into more debt. LEVEL enables Sam to access money he has already worked for before his “official” payday. For centuries workers have had to work and then wait for either a two-week or monthly pay cycle before they could get paid. Back then the payroll process was hampered by bureaucratic practices like clocking in and out of work and lengthy tallying of hours worked. That was then…

Now, in the 21st Century and with the onset of the 4th Industrial Revolution (4IR), every week can be payday with LEVEL. It’s simple – your employer must be registered on the platform; when you’ve worked the necessary hours and accumulated sufficient money, you can claim against the available money you’ve earned from your employer. The money you used plus a small service fee (to keep the platform running) gets deducted from your salary at the end of the month.

This is a dream come true for Sam – he doesn’t have to pay astronomical interest rates to the mashonisa anymore, he sleeps better at night and he’s living his best life as a “Socially Active Man”.

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