Standard Bank Group (Standard Bank) has extended a R400-million working capital facility structured in a sustainable finance format to earned wage access (EWA) provider Paymenow.
The EWA model allows employees to access a portion of their earned wages before traditional payday, providing a healthier alternative to unethical lending while driving financial literacy training through incentivised gamification.
Standard Bank has also enabled Paymenow with the faster payment solution, PayShap, to help it remain competitive in the ever-evolving payments landscape.
Deon Nobrega, CEO of Paymenow Group, says: “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.”
Noloyiso Mpanza, head of sustainable finance, transaction banking at Standard Bank CIB, comments: “We are proud to partner with an innovative fintech whose mission is to help employees build a better future, promote financial inclusion and educate their customers on how to make better financial decisions. This partnership showcases our capability to leverage our regional footprint and innovative digital banking solutions to support fintechs and new business models across the region.”
Paymenow has also been onboarded onto Standard Bank’s OneHub platform, which serves as the bank’s digital ecosystem, encompassing Better Banking, Beyond Banking, and the API Marketplace. This allows Standard Bank’s corporate clients to seamlessly access Paymenow’s Financial Wellness Solutions.
The facility will support Paymenow’s expansion plans across strategic African markets, building on its established presence in South Africa, Namibia and Zambia. Paymenow has identified significant opportunities in additional jurisdictions where traditional financial services have failed to adequately serve the needs of working populations, leaving them vulnerable to predatory lending and perpetual debt cycles.