15 May 2020
A revolutionary fintech aimed at eradicating crippling payday loans by offering interest free advances has trialled in Scotland with the support of ethical investor Fortunis Capital.
Karma allows employees monthly salary advances of £300 with zero interest - in stark contrast to the punitive rates charged by some lenders.
Their mission is to help employees avoid debt by providing a healthier pathway for them to manage their wages - whilst making no charges of any kind to the employee or the employer.
They do this through a unique retailer-connected platform offering early access to wages and the ability to get rewards for daily purchases.
- Employees become better motivated, more focused and more productive
- Employers achieve higher employee retention
- No impact to existing payroll processes (no additional payroll runs, no changes to payroll process)
- No impact on cash flow, since Karma funds employee advances
Employers signing up to Karma can advance staff £300 on their salary to purchase goods and services at retailers – in person and online - including Tesco, Asda, Morrisons, Waitrose and Amazon. Employees pay no interest or fees and, unlike current lending schemes, may improve their credit rating.
Employers interested in providing this benefit to employers can register their interest here