Helping young people in South Africa avoid expensive loans to make ends meet

Paula Luckhoff

| Motheo Khoaripe interviews former Springbok Bryan Habana, co-founder of the Earned Wage Access Paymenow platform.

South African youth are at a crossroads, warns former Springbok Bryan Habana on this Youth Day, June 16, 2022.

On one side is the shocking youth unemployment rate of 65.5%, says Earned Wage Access (EWA) company co-founder Paymenow.

“On the other hand, for young people who have the privilege of actively participating in the economy, their wages do not sufficiently cover them until the end of the month.”

The EWA solution allows the user to access already earned wages without the threat of an expensive loan, explains Habana in a conversation with Motheo Khoaripe (for Bruce Whitfield).

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If you don’t have money to go to work to earn money, how do you deal with that?

Bryan Habana, Co-Founder and Head of Business Development – Paymenow Group

We’re really trying to use financial education to motivate people and make sure they’re financially better off…and in doing so, work a little better with their money.

Bryan Habana, Co-Founder and Head of Business Development – Paymenow Group

The app basically helps young people to borrow from their own income and prevent them from getting into debt due to possible multiple loans, comments Khoaripe.

But can’t this strategy also put them in debt?

Habana uses the example of someone who needs R300 to get to work – they could get in serious trouble going to an unsecured lender who charges them exorbitant fees later, he says.

If you give them access to their own money they know it’s going to be deducted from their own salary at the end of the month and if they waste it it will be much more vicious for them… so they end up use it much more responsibly.

Bryan Habana, Co-Founder and Head of Business Development – Paymenow Group

Habana says the platform is also looking at ways to help customers save.

We are the first to honestly say that we are not a holistic solution. We hope we are part of a larger financial wellness package that employers can offer their employees where they save on fees.

Bryan Habana, Co-Founder and Head of Business Development – Paymenow Group

We are constantly looking for ways to save people a little bit and in the process give them a profound impact so that they see their money in a very different way.

Bryan Habana, Co-Founder and Head of Business Development – Paymenow Group

For more details on how Paymenow works, listen:

This article first appeared on CapeTalk: Helping SA youth avoid expensive loans to make ends meet – Bryan Habana

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