Standard Bank Group (Standard Bank) has extended a R400 million Working Capital Facility structured in a Sustainable Finance format to leading South African earned wage access (EWA) provider Paymenow. This marks a significant commitment to financial inclusion and the expansion of innovative employee financial wellness solutions across Africa.
The facility represents a significant endorsement of the EWA model, which allows employees to access a portion of their earned wages before traditional payday, providing South African employees with a healthier alternative to unethical lending, while driving financial literacy training through incentivised gamification. This innovative financial solution has proven particularly valuable in addressing cash-flow challenges faced by millions of workers across Africa, enabling them to meet immediate needs while encouraging better financial habits and building their ability to save.
This milestone transaction underscores Standard Bank’s support for fintech solutions and new business models. In line with our commitment to consistently provide clients with innovative financial solutions, Standard Bank has enabled Paymenow with the faster payment solution called PayShap. This faster payment capability ensures that Paymenow is competitive and ahead of the curve with the ever-evolving payments landscape.
Deon Nobrega, CEO of Paymenow Group, said, “This substantial facility from Standard Bank Group demonstrates that leading financial institutions recognise the transformative potential of earned wage access and are willing to invest significantly in its growth. The funding will enable us to accelerate our expansion across Africa, bringing financial dignity and flexibility to millions more workers who currently struggle with the constraints of monthly pay cycles and resort to expensive credit to bridge gaps in their cash flow.”
For employers, EWA has emerged as a powerful tool for employee retention and productivity, reducing financial stress-related absenteeism and improving overall workforce wellbeing. The solution requires no changes to existing payroll systems and carries no cost or risk to employers, while delivering measurable improvements in employee satisfaction and engagement.