A startup founded in 2018, Stream (formerly Wagestream) is putting up a tough fight against payday loans by offering cheap and easy-to-set-up salary \u201cstreaming\u201d.<\/p>
If you\u2019re an employee and your employer works with Stream, you can be \u201cpaid as you earn\u201d. With Stream, you can access your earned wages whenever you need them in exchange for a fixed fee of \u00a31.75 per transfer, making it one of the most cost-effective choices in the market.<\/p>
In practice, this means that if your washing machine suddenly breaks and you need to replace it ASAP, you don\u2019t need to take out a loan that could potentially cost you a fortune in interest. And since it isn\u2019t a loan, you\u2019re not technically going into debt, and it doesn\u2019t impact your credit score \u2013 your credit report isn\u2019t even checked.<\/p>
If you\u2019re an employer, you get to offer a nice perk to your employees in return for a reasonable price and not too much effort. Stream says its service boosts financial well-being and productivity, contributing to employee satisfaction and performance.<\/p>
Stream also offers a \u201crainy day pot\u201d where part of an employee\u2019s salary is put aside automatically, making it easier to save and taking away the temptation to spend the money saved for emergencies.<\/p>
However, it doesn\u2019t loan out money to employees. Many of Stream\u2019s competitors offer loans as an option where repayments are automatically taken from the employee\u2019s salary. These employee loans have an interest but are typically lower than traditional loans. <\/p>
It\u2019s fairly simple \u2013 enough to make you wish you\u2019d thought of it:<\/p>
Given the alternative could be an expensive payday loan, this seems like a neat solution for people to access what they\u2019ve earned when they need to (for a small fee each time). Because of the limit on the amount employees can withdraw, it may not work for big-ticket emergencies, but it is likely to save some users from interest payments and debt.<\/p> \n