Startup offers payday advances without the pesky loan-sharking

edition.cnn.com

7 pointskimonos2 comments

If I were an employer who employed a lot of lower-class people of the sort who might use this service (say, Wal-Mart) I'd be looking at this article and wondering "Why don't we just pay our employees every day?"

The extra costs would be minimal, surely, since it's just a bunch of automated money transfers. And it would make our company the employer of choice for minimum-wage schlubs with poor forward-planning capabilities everywhere.

Is that necessarily better?

I've never had a regular paycheque, by my understanding is that you'd setup your rent and other big bills to go through on a specific day to coincide with getting paid.

If you're paid 1/30 of your monthy salary each day, you're going to have to save up for these bills, and if you're behind, you'll still need some kind of advance.

A hybrid solution, where you can give your employer the dates and amounts of your big bills, and then the remainder is paid out daily, would actually seem pretty useful. Though much more complex.

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