Standard Bank Group has extended a R400m working capital facility structured in a sustainable finance format to a South African earned wage access (EWA) provider Paymenow.

This marks a significant commitment to financial inclusion and the expansion of innovative employee financial wellness solutions across Africa.

“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,” said Noloyiso Mpanza, Head of Sustainable Finance, Transaction Banking at Standard Bank CIB.

The facility represents a significant endorsement of the EWA model, which allows employees to access a portion of their earned wages before traditional payday, providing South African employees with a healthier alternative to unethical lending, while driving financial literacy training through incentivised gamification.

This innovative financial solution has proven particularly valuable in addressing cash-flow challenges faced by millions of workers across Africa, enabling them to meet immediate needs while encouraging better financial habits and building their ability to save.

This milestone transaction underscores Standard Bank’s support for fintech solutions and new business models. In line with our commitment to consistently provide clients with innovative financial solutions, Standard Bank has enabled Paymenow with the faster payment solution called PayShap.  

This faster payment capability ensures that Paymenow is competitive and ahead of the curve with the ever-evolving payments landscape.  

For employers, EWA has emerged as a powerful tool for employee retention and productivity, reducing financial stress-related absenteeism and improving overall workforce wellbeing. The solution requires no changes to existing payroll systems and carries no cost or risk to employers, while delivering measurable improvements in employee satisfaction and engagement.

Further strengthening this strategic alliance, Paymenow has been onboarded onto Standard Bank's OneHub platform, creating unprecedented opportunities for collaboration and expanded market reach. OneHub serves as Standard Bank's comprehensive digital ecosystem, encompassing Better Banking, Beyond Banking, and the API Marketplace - a suite of cutting-edge tools and platforms designed to accelerate Standard Bank’s clients' digital transformation journeys with enhanced efficiency and cost-effectiveness. This integration empowers Standard Bank's corporate clients to seamlessly access Paymenow's innovative Financial Wellness Solutions, enabling them to enhance employee satisfaction, reduce financial stress-related absenteeism, and strengthen workforce retention - all without any cost or operational burden to their businesses.

The facility will support Paymenow's ambitious 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.

Recent impact studies have demonstrated the positive effect of EWA on financial wellness, with users reporting improved ability to manage emergencies, reduced reliance on informal lenders, and increased savings rates.

Deon Nobrega, CEO of Paymenow Group, said: "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."