Naspers invests R15m in earned wage access platform Floatpays


Phuthi Mahanyele-Dabengwa, South African CEO of Naspers.

Naspers, through its R1.4 billion technology investment vehicle Naspers Foundry, announced a R15 million ($1 million) investment in Floatpays, a platform for accessing wages earned at demand that helps customers strengthen their financial well-being.

Floatpays provides customers with real-time access to a portion of their earned but unpaid income at any time of the month, providing them with an alternative to using credit to cover unexpected expenses.

This is Naspers Foundry’s third fintech investment and ninth transaction since its launch in 2019.

According to Naspers, Floatpays’ vision is to enable customers to achieve financial well-being by moving them from debt to savings, through better access to their income, budgeting and financial awareness.

He notes that Floatpays’ technology integrates with a company’s existing payroll system, allowing employees to access a portion of their earned pay at any point in the payroll cycle.

Floatpays, which was founded in 2019, helps customers reduce their dependence on debt, start saving and learn skills to better manage their money, the company explains.

He says the solution can reduce financial stress, helping employees avoid expensive credit, payday lenders, and borrowing from family or friends when they need cash to go on payday.

Naspers adds that Floatpays also helps employers, allowing them to help their employees boost their financial well-being.

The Floatpays solution for employees is available on smartphones and functional phones via an application on iOS, Android or by USSD. Employees can access their withdrawals through Floatpays instant cash vouchers and electronic funds transfers.

Employees can use their earned salary to buy necessities such as prepaid vouchers for mobile data, airtime, electricity or medical care through the app or USSD.

Phuthi Mahanyele-Dabengwa, Naspers CEO for South Africa, comments: “We are delighted to invest and support Floatpays in its goal to help people avoid debt and provide support to South Africans in these difficult economic times. Financial inclusion is important to us because it aligns well with our goal of using technology to improve people’s daily lives and our commitment to help our country towards economic recovery.

Fabian Whate, Director of Naspers Foundry, said, “Access to on-demand earned wages is growing rapidly in the fintech industry. Although still nascent in South Africa, there is significant potential for Floatpays, which focuses on serving the underbanked. We are thrilled to partner with the Floatpays team, which has a proven track record in tech start-ups, especially in fintech.

Simon Ward, Founder and CEO of Floatpays, said, “We welcome the support and partnership with Naspers Foundry that will enable us to realize our vision of empowering South Africans to achieve financial well-being.

“Floatpays provides everyday citizens much-needed access to funds and a growing range of other financial services, fostering a more productive and healthier workforce with greater financial security.”

According to Naspers, more than a quarter of customers sampled in the Wellness Warehouse case study conducted in 2021 said they were able to avoid payday loans thanks to the Earned Wages Access platform.

The same study reported that 88% of users said they were better off financially after using the platform, it concludes.


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