Modulr helps Wagestream achieve financial security

Wagestream – the financial wellbeing app founded with charities, designed for frontline workers and built around pay – aims to make work inclusive and rewarding for millions of employees.

Workers use Wagestream to choose their own pay cycle, manage their budgeting, save for a rainy day, chat to a personal money coach, and get fairer deals on financial products – all in one app, with minimal change to payroll.

This article focuses on how Wagestream helps businesses to solve people problems and transform lives for their employees. Modulr.

Why it’s needed: financial services that give and don’t take

A charity-backed app is now available to more than one million people. WagestreamThe mission of is to make money and work more inclusive, fair, and rewarding.

“Frontline workers pay significantly more for financial services and this can contribute to poor financial wellbeing,” Nick Rogers, Vice President of Engineering at Wagestream, explains.. “We hope to eradicate the extra costs frontline workers pay by giving people access to financial services built around flexible pay, which means accessing their income at times throughout the month that suit their needs.”

Wagestream is a financial tool that helps employers to build financial resilience over the long-term.

“Our view is that there are lots of companies focused on building financial super apps, but there’s very few that are really focused on the frontline worker. Financial services include a wide range of products. These include insurance, credit, savings, and investment. We asked ourselves, how can we rebuild these products in a way that is designed specifically for this underserved market and then effectively deliver them, one-by-one, as a compelling value proposition – to create a comprehensive offering across the space.”

In addressing the financial needs of the frontline worker both now and in the longer term, Wagestream knew that it needed a partner who could optimise payments at scale, unconstrained by the manual processes and legacy infrastructure​ of the traditional banking system. One that could provide fast and reliable payments to any UK account.

It’s a search that brought Wagestream to Modulr.

“Modulr has a mature service offering and some really high-calibre, top-tier UK FinTechs as its clients. And that’s one of the key things that differentiates it from the competition,” Nick also adds.

It is pay cycles that work long-term for financial health

Wagestream’s financial wellbeing app is built around flexible pay, also known as earned wage access – this allows employers to give their employees access to their earned pay throughout the month, so they can establish a pay cycle that works for their long-term financial health.

Flexible pay simply means ; the funds available are a portion of what the employee has actually earned to date – with no interest ever paid on the funds accessed.

Modulr provides the underlying account infrastructure that underpins Wagestream’s flexible pay proposition so that employees at organisations that offer Wagestream can use the Wagestream app to access their pay when they choose. Employees can access their earned wage by creating an account for the company. The account will be used to transfer funds to the employees’ accounts during the pay period. Modulr allows users to create their own accounts to receive their net pay on their regular pay date.

Modulr transfers a portion of employees’ earned wages directly to them when they have access to their pay in flexible ways. On payday, Modulr then automatically deducts any flexible payments made throughout the month and associated fees, before transferring the remainder of the salary into the employee’s personal bank account, as usual. This automated process takes a matter of seconds, thanks to Modulr’s direct participation in the UK Faster Payments scheme.

And all while having minimal impact on the employing company’s payroll processes.

“Flexible pay is built upon the premise of being able to send people money quickly. Modulr’s payment service provider is invaluable. Our service offering just couldn’t exist without it. Modulr has a set of APIs that we can integrate with incredibly quickly and easily to send payments to any bank account in the UK, in a matter of seconds.” Nick.

How it works: A supercharged salary solution

Flexible pay allows employees with fluctuating earnings to access their pay as they earn it. This makes cashflow and long-term financial planning easier.

“We very much believe that flexible pay will become the standard going forward,” Nick. “It’s just a question of when. Not only does it have a massive impact on financial wellbeing, it’s also a highly effective tool in the recruitment and retention of staff, as well as on staff productivity. It’s becoming increasingly difficult to believe that you will work for a day only to have your employer pay you for it 30 days later. Our mission is to make sure that happens as quickly as possible.”

So, what’s next for Wagestream and Modulr?

“We look to pick really high calibre partners that we believe in, and then go on a journey with them, utilising more and more of their existing capabilities but also working together to develop new functionalities so that we can deliver even more value to our customers.”

And it’s a journey that’s going to take them further into the Eurozone, with Wagestream set to leverage Modulr’s growing European capability. Both companies share a commitment to the end-customer experience and requirements, for example the need for local IBANs -something that’s important for both flexible pay for employees and for the employers’ ability to make payments. This is in addition. SEPA InstantThe European-wide Faster Payments Scheme.

“All in all, it’s a reliably predictable partnership,” The conclusion.

 

Get latest news from African Startup ecosystem

Latest stories

You might also like...