The instant pay system, which gives employees 50% access to their daily pay, was launched in August and is already used by nearly 75,000 Canadians.
KOHO Company wants to help workers who are struggling to meet their daily needs. Many big companies like Tim Hortons and Boston Pizza are using their program.
Once registered, employees can withdraw and use half of their daily salary for free each day.
For example, if a worker earns $ 200 per day, he can claim $ 100 per day. On the day of payment, the withdrawn amounts will be deducted from his salary.
According to company management, this service allows to reduce the financial stress of employees who are more vulnerable and it helps to retain employees.
“One in two Canadian lives has to be paid for. Most Canadians don’t have enough money if they have better expenses like a broken car,” Phoenix director Felix Wu explained.
According to the Cooperative Family Financial Associations (ACEF), however, we must be vigilant. Used properly, it can streamline commerce and make the world smaller.
“This is an extraordinary troubleshooting solution. It’s a sign that our financial situation is in trouble,” said Heil Hetu Budget Consultant ACEF Rive-sud de Montreal and Funds de Entride Rive-sud.
Mrs. Hatu suggested that a budget be prepared in advance. The key, she says, is planning.