[antihero]

I mean, if workers are withdrawing money this month, which I presume is then taken off their wages next month, they are now in the hole, and even without interest, the problem just gets worse and worse, because then the next month they are more likely to withdraw early because they have less money.

I do not know if this is financially responsible. How exactly will this prevent a horrific snowballing effect?

[jkhdigital]

If you step back for a minute, consider this question: when do you pay for goods and services? Usually, the moment you receive them. When does your employer pay you for the services you provide? …two weeks later, wut

[dd36]

Many businesses don’t get paid right away.

[asukhwani]

jkhdigital is right.

Also, bear in mind that our average user in Spain takes out 50$, whilst their salary is >1,000$. We also regularly survey users to see chat reasons they make withdrawals for. Our conclusion is users are taking small portions of their salary to cover unexpected expense.

It’s so much better than paying for an expensive overdraft!

[sagarm]

You could say the same about credit cards and their grace periods, but plenty of people are able to use those without incurring fees.

This product doesn't even seem to have the risk of generating fees directly.