The former Springbok who founded Paymenow

Daniel Puchert

Daniel Puchert

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The Springbok legend who founded his own tech company

Legendary Springbok winger Bryan Habana co-founded an earned wage access (EWA) platform Paymenow in January 2020 with three other entrepreneurs who hoped to tackle overindebtedness in South Africa.

Habana is one of South Africa's best-known and most respected rugby players and was globally renowned for his speed and try-scoring ability.
 

Paymenow

Paymenow is a financial wellness provider empowering workforces with earned wage access, savings, rewards, financial education, digital payslips, and more, at no cost to employers. Transforming how employees manage money, reduce debt, and build a better future.
www.paymenow.live www.paymenow.live

Based in the 'Bosch.

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Indebtness? How?

Will this be like the salary/wages short term loans:
Employees, take the advance, get 75% of their wages. Retake the advance as they are short every week. All the while losing money to interest. This is legal loansharking.
 
rh1 said:
Indebtness? How?

Will this be like the salary/wages short term loans:
Employees, take the advance, get 75% of their wages. Retake the advance as they are short every week. All the while losing money to interest. This is legal loansharking.
Click to expand...

All these loans companies are causing indebtedness. People need to learn to save. Then they won't need to take advances and payday loans everywhere.
 
NarrowBandFtw said:
so ... a payroll company?
Click to expand...
Not even that, they give employees loans which the employer must then pay back on behalf the the employee deducted from their payslip when they next get paid.

Its a premium app for basically employee loans just with more steps and at a premium rate
 
dontcryforme said:
Not even that, they give employees loans which the employer must then pay back on behalf the the employee deducted from their payslip when they next get paid.

Its a premium app for basically employee loans just with more steps and at a premium rate
Click to expand...
sad that there even is a market for that, but of course there is
 
NarrowBandFtw said:
sad that there even is a market for that, but of course there is
Click to expand...
You have no idea, and they are not the only one in South Africa - theres a couple more. It does not make sense for me why an employer would add all these extra steps instead of just giving an employee an advance yourself directly.
 
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I have NFI how this is legal.
Back in the day, there were micro loan companies that got connections at government departments and loaded their clients' loan repayments on the gov payroll system. With this "system" you are guaranteed your money back as the lender. No bad debts or they would be minute compared to the normal "system".

Bunch of them got caught out by the NCR, and they closed down/fined, or whatever.
Also, I don't see that they are a registered credit provider.

:unsure: :unsure: :unsure:
 
dontcryforme said:
You have no idea, and they are not the only one in South Africa - theres a couple more. It does not make sense for me why an employer would add all these extra steps instead of just giving an employee an advance yourself directly.
Click to expand...
I spoke to a payroll manager at a largish company, where this is rife. She hates it, as it is extra work for her.

I asked her why are they doing it, she said it was top management that gave the go ahead. Now even if they want to stop they cannot as too much employees needs the lifeline.

The only way to stop is to reduced by 1% or 0.5%, the maximum the employee can take, (legally 25% as that is the maximum deduction allowed by law). And after 25 weeks if 1% or 50 weeks if 0.5%, they will be free.from the loan shark.
 
W@P said:
I have NFI how this is legal.
Back in the day, there were micro loan companies that got connections at government departments and loaded their clients' loan repayments on the gov payroll system. With this "system" you are guaranteed your money back as the lender. No bad debts or they would be minute compared to the normal "system".

Bunch of them got caught out by the NCR, and they closed down/fined, or whatever.
Also, I don't see that they are a registered credit provider.

:unsure: :unsure: :unsure:
Click to expand...
Not only that, the Basic Conditions of Employment Act limits deductions from payroll
 
ChatGPT:

✅ What Is EWA?​


EWA lets employees access a portion of their already-earned wages before payday, usually via an app. It’s often pitched as an alternative to payday loans.



🇿🇦 Legal & Regulatory Position in South Africa​


1. Is it legal?​


✅ Yes, EWA is allowed — but only if it’s structured carefully to avoid being classified as a credit product.



2. Do EWA providers need to register with the NCR?​


It depends:


StructureNCR Registration Required?Why
Non-credit model (access to wages already earned, no fees or interest charged)❌ Not requiredThis is not considered credit under the National Credit Act (NCA).
Credit model (interest or fees charged, or advancing unearned wages)✅ RequiredThis is classified as credit and regulated under the NCA.
Employer-funded EWA (no third-party provider)❌ Not requiredTreated as an internal payroll arrangement.


So:


If your EWA service charges a fee or extends money not yet earned, it probably falls under the National Credit Act, and the provider must be registered with the NCR.
Click to expand...


⚠️ EWA Risks in SA Context​


  • Some fintechs skirt regulation by calling it a “service fee” — this can draw NCR scrutiny.
  • The NCR and FSCA are aware of EWA models and may tighten rules in future.
  • Employers and providers should be cautious not to create debt traps disguised as wage access.
 
dontcryforme said:
You have no idea, and they are not the only one in South Africa - theres a couple more. It does not make sense for me why an employer would add all these extra steps instead of just giving an employee an advance yourself directly.
Click to expand...
I spoke to a payroll manager at a largish company, where this is rife. She hates it, as it is extra work for her.

I asked her why are they doing it, she said it was top management that gave the go ahead. Now even if they want to stop they cannot as too much employees needs the lifeline.

The only way to stop is to reduced by 1% or 0.5%, the maximum the employee can take, (legally 25% as that is the maximum deduction allowed by law). And after 25 weeks if 1% or 50 weeks if 0.5%, they will be free from the loan shark.
 
This is basicly a way to print money.
 
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