Earnipay is on a mission to relieve the 30-day payday cycle employees have to wait despite the financial obligations and pressure faced daily. 

The company is fast becoming the definitive on-demand salary access solution, taking on the single biggest source of distractions and declining productivity in the workplace – money worries and helping employers stay out of debt cycles from predatory payday loans and unlock financial freedom. 

Speaking on the collaboration, Nonso Onwuzulike, Founder and CEO of Earnipay said; “We are constantly improving the way that we serve our primary customers; employers and employees, and our adoption of the robust APIs available on the OnePipe gateway is in line with our commitment to offering financial freedom to businesses. For employers, this is freedom from the challenges that come with poor performance and staff turnover created by employees having to deal with financial struggles while for employees, it’s freedom from restrictive monthly payment cycles and an open door to flexible access to the money you’ve earned. Leveraging OnePipe’s resilient infrastructure ensures that disbursement/collections happen in a matter of seconds, improving our promise to our consumers” 

The partnership opens doors for Earnipay to double up on its achievements, with over 200,000 employees, before the end of 2022 and rapidly expand across the African region. 

Ope Adeoye, OnePipe’s CEO, said the partnership will be an enabler to enhance Onepipe’s goal actualization:

“OnePipe’s fundamental promise is to work with its partners to achieve customer intimacy and operational excellence through embedded finance. We keep to this promise daily by ensuring that the OnePipe gateway delivers world-class service on time, every time. Earnipay choosing OnePipe as they progress on this laudable journey is a further incentive for Onepipe to keep to its promise.”

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Earnipay was launched last month after being in beta since September 2021. The startup plans to offer its on-demand salary solution to 200,000 employees by the end of 2022 and will leverage the seed funding to target large enterprises, shifting its focus regionally.

The round was led by early-stage venture capital firm Canaan and included investors such as XYZ Ventures, Village Global, Musha Ventures, Voltron Capital, Ventures Platform and Paystack CEO Shola Akinlade.

Earnipay is building an earned wage access platform and integrates with companies’ existing payroll or HRM systems to offer its services to employees, who can then track and withdraw their accrued salaries via the app.

Employees’ salaries are prorated daily and companies can set limits for the percentage of salaries employees can withdraw each month. For instance, if an employee earns ₦300,000 monthly, they can get ₦10,000 daily (for 30 days) or ₦15,000 (if the employer sets the system to count only workdays; 20 in this case).

Earnipay makes these payments on behalf of the company, especially those whose cash flow may be affected should they finance the earned wage payments themselves. At the end of each month, these companies reimburse Earnipay. But for others who can afford to, Earnipay sets up a reconciliation account on top of employees’ salary accounts with scheduled automatic reimbursements.

The startup’s revenues come from charging employees a fee for accessing a part of their salary early. For withdrawals between ₦2,000($4) and ₦10,000 ($20), Earnipay collects a ₦250 ($0.5) fee. For ₦10,000 to ₦50,000 ($100) withdrawals, the charge increases to ₦500 ($1).

Since operating in beta, Earnipay has served over 20 businesses, outsourcing firms and HR solution providers in Nigeria. Some of its clients include Eden Life and Thrive Agric, whose thousands of employees have used the app to access their salary over 1,000 times, said the company.

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