Finance

How Pay-On-Demand Apps Works in Australia: Is It a Good Idea?

It is only a few weeks into the month, but you are already running low on cash. More often than not, you consider talking to your boss to give you a fraction of your month’s wage instead of waiting until the end of the month.

But what if there is a way to automate the whole process? Indeed, pay on-demand apps to help workers or salary earners to receive their wages even before the date when it is expected.

As an Australian employee, these apps can help you in getting access to your earned wages, which is most times, calculated daily. What a marvelous improvement – you don’t need to ask your boss for pay in the middle of the month or go begging.

What is Pay On-Demand Apps?

Pay on-demand apps are also known by other names, including Wage Advance Apps and Pay On-Demand Services. The role of these apps is to help salary earners or employees get a portion of their wages.

This comes in handy for Australians who might either be running low on cash or have an urgent purchase to make, but unable to do so because the money is incomplete.

How Does a Pay On-Demand App Work?

As a mobile application designed to work on demand, these apps allow you to take a loan or salary/wage allowance. Have in mind that you may be entitled to a certain portion or percentage of your wage, as the services may not allow for 100% cash advance.

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For example, John, an Australian working in one of the startups in the country is entitled to an AUD 1,000 wage every month. However, John needed to go grocery shopping to fill the home with the needed items. At the time, he only had AUD 300, being the leftover/savings from his last wage. The groceries he wanted to shop for cost $800.

Rather than go caps in hand to the boss to beg for a salary or wage advance, John can simply log into his earned wage access app to request a cash advance. Since he is not entitled to the entire wage, John may be lucky to get 50% of it ($500), which would be enough to cover the cost of the groceries.

Things to Have in Mind before Using Pay On-Demand Apps in Australia

I understand how exciting the prospect of having your wage advanced to you is. Yet, you must take note of some of the important things to know about such apps.

Here are some of the things to have in mind before signing up for a pay on-demand app:

1.    The App is Only Available for Employees

You must be employed or subject to a monthly wage before you can be allowed to create an account on and use the pay on-demand app.

2.    Meet the Income Requirement

Most pay on-demand apps do not offer wages in advance to the users. This could be because of many reasons, including that it is barely a few months of using the app.

Also, you may be required to meet the minimum income requirement, meaning that your income needs to be within a certain range to qualify.

3.    The Crediting Timeframe May Differ

Another thing to have in mind is that the timeframe for crediting you with the wage advance may differ. For example, some pay on-demand apps in Australia may credit you with the wage advance within a few minutes, while others may take a couple of days.

4.    The App Figures out Your Cash Limit

The wage advance app also runs a couple of calculations to be certain of the cash limit you have. This is achieved via the use of Artificial Intelligence (AI) and any other relevant algorithm that can help determine your eligibility and maximum limit to request in advance.

5.    Your Pay Cycle May Also be in the Way

Australian employees who have a pre-determined payment cycle may not have any challenges with accessing wage advances than those who don’t. If your payment cycle is irregular (i.e., you are paid on the 12th of this month and paid on the 2nd of another month), it will be difficult to be sure of when your wage will be paid in full.

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Benefits of Pay On-Demand Apps for Australians

Employees in Australia have a lot to be thankful for as the variety of pay on-demand apps available in the country make wage advances easier.

The advantages of this include:

1.    Flexible Payments

It is goodbye to waiting until payday to get your wage. You can take an advance and have it paid back to the service once your wage is paid in full.

2.    Ease of Use

Most pay on-demand apps are generally easy to use, both for checking your eligibility and applying for the wage advance.

Concluding Thoughts

Using pay on-demand apps in Australia to pay for important shopping and any other expense you make can be helpful when you are either running low on cash or payday is a bit far. The risks associated with this include indirect encouragement of overspending, as you always have access to apply for an advance, as well as running the risk of running into debt.

When choosing a pay-on-demand app in Australia, do well to choose one that is easy to use, matches your spending habits, and doesn’t charge high service fees.

Chukwukadibia Abah
CHUKWUKADIBIA ABAH is a passionate freelance writer and contributor to the Entrepreneur Business Blog. You can follow him on: Facebook: https://web.facebook.com/ChukwukadibiaAbah1/ Twitter: https://twitter.com/Chukwukadibia01 LinkedIn: https://www.linkedin.com/in/chukwukadibiaabah/ Instagram: https://instagram.com/chukwukadibia_abah

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