Canadians can now turn to challenger bank KOHO to help pay expenses on time and avoid fees and interest.
KOHO launched an Early Payroll feature today to their entire user base, which provides users free access to $100 of their paycheque 3 days before the scheduled payday.
“It’s really common that Canadian’s need a little extra help before making it to payday,” said Daniel Eberhard, Founder and CEO of KOHO. “The payday lending industry is predicated on taking advantage of that vulnerability. The KOHO team built a product that is fair, free and accessible to everyone. It’s a huge step forward in our mission to making fair, financial products ubiquitous.”
KOHO’s research discovered that a large majority of Canadians experience a cash flow shortage of just a couple hundred dollars between paycheques every month.
This causes Canadians to have to turn to solutions such as credit card debt, payday loans, overdraft or borrowing from friends or family, simply to cover necessary expenses like groceries and phone bills. KOHO is focused on trying to create fair and accessible financial products that Canadians can rely on without any added worry.
KOHO initially piloted the Early Payroll feature to specifically support any users receiving the Canadian Emergency Response Benefit payments, and also through a piloted partnership with Canadian startup Hyr, who provides in-app staffing solutions. Positive results from those pilots have now allowed KOHO to make this feature available to everyone.
All KOHO users who set up direct deposit are eligible to get $100 of their paycheque up to 3 days early to help tie them over. No fees, no interest, and no credit checks or applications. It’s just a little help when people need it most!