In a nutshell: SteadyPay is a socially aware credit service with a vision to provide financial wellness to those paid by the hour/gig. They do this by smoothing out workers’ income, giving them consistency across pay cycles which allows them to budget, save and pay for expenses.
SteadyPay’s solution: Their service provides an alternative to the traditional credit solutions. By working out the customer’s average pay they top up their pay when a customer earns lower than average. The top-up is a cash advance deposited into the customer’s current account. This provides the predictability of income needed to get a handle on everyday expenses and moreover, the top-ups are interest free. SteadyPay mitigates the risk of the customer falling into problem debt.
USP: Their competitive advantage derives from how they address pay volatility and improves the financial wellness of people working in the growing gig economy. The solution disrupts the traditional lending model by not charging interest and by not charging ‘rip-off fees’ based on how people make repayments. Instead, they operate as a simple subscription credit service – customers only pay a single, low, weekly fee.
Experience: SteadyPay’s team has extensive industry experience. The co-founder and CEO John Downie, with a track record of building companies, is an experienced technology executive and consultant with a deep knowledge of banking and delivering a number of projects to large banks. The founder team brings a mix of experience in the financial sector, product management, digital transformation, credit risk, regulatory and payments.
Traction: After their tech team was formed in December 2017, SteadyPay gained FCA approval in October 2018 and launched their beta. Soft launch followed in December 2018 and since then they’ve gained over 100 members, and have a waiting list of over 1000 people.