Salaryfits Launches Salary Advance via Pix
Through the SalaryFits app, employees of companies that use the Fintech’s automated benefits management services can request an advance of up to 40% of their salary.
A salary advance that does not impact the company’s cash flow. This is one of the features of SalaryFits, which recently launched the option to receive up to 40% of the salary via Pix. ‘Since we launched this feature two months ago, the number of requests has quintupled,’ says Fin Gnieser, Head of Product at SalaryFits.
For those requesting the advance, there is an interest rate ranging from 2% to 4%. This rate is calculated based on an assessment the Fintech conducts on the company’s financial risk. ‘It’s a relatively low rate compared to overdraft fees or credit card limit use, which can reach up to 15%. It’s a rate that only covers our operation costs when advancing the amounts,’ says Gnieser.
Gnieser explains that the idea of salary advances came up when the Fintech noticed people requesting payroll loans, another service they offer, for small amounts close to payday.
‘Payroll loans can be useful for solving many problems, like paying for car repairs or undergoing surgery. They are meant for very specific cases that require a larger amount. For a financial issue at the end of the month, like buying medicine, we realized we could develop a cheaper, less bureaucratic product that would help people avoid taking out a payroll loan,’ he explains.
From there, about two years ago, SalaryFits began offering salary advances through a type of credit card, with no interest or usage fees. In this case, employees of partnered companies can also request a limit of up to 40% of their salary on the card.
Like a prepaid credit card, this feature, which is still available, can be used for online or card machine payments but does not allow for cash withdrawals. To enable withdrawals or transfers to others, the Fintech decided to create the salary advance via Pix.
The requested amount is received in real-time in the employee’s bank account. If they get a raise, their limit in the SalaryFits app automatically increases proportionally.
‘Payment for the service usage is made through payroll deduction. The entire process is 100% automated, via an integrated API, and is completed in just a few minutes per month, regardless of whether two or two thousand people used the benefit, without generating any additional work for HR,’ assures Gnieser.
In addition to salary advances via card or Pix and payroll loans, SalaryFits offers other benefits to companies that hire their services, such as health plans, dental plans, online psychotherapy, courses, gym memberships, and leisure options. As a discount club, the Fintech’s app features over 5,000 brands in 25,000 stores in Brazil, both for online and in-person shopping. When using SalaryFits services, the company chooses which benefits to offer its employees.
‘With all the features we offer in our app, we not only promote healthier financial habits but also increase workers’ purchasing power,’ adds Fin Gnieser.
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