• Standard Bank granted Paymenow a $22 million loan to expand its early wage access service in Southern Africa.

• Paymenow helps employees access earned wages early without fees, reducing reliance on high-interest informal loans.

• South Africa faces a household savings crisis, with many workers turning to unregulated credit to cover expenses.

Standard Bank granted Paymenow, a South African fintech, a credit facility of 400 million rand (about $22 million) to expand its early wage access service. The loan, announced on July 8, 2025, will accelerate Paymenow’s growth across Southern Africa.

Paymenow allows employees to access part of their earned wages before payday without charging fees or interest. The service aims to help workers manage short-term financial emergencies and cut dependence on informal or high-interest loans.

Paymenow’s data reveals a household savings crisis in South Africa. The country’s household savings rate stands at negative 1%. This means for every 100 rand of disposable income, households spend 101 rand, often borrowing to cover the extra expenses.

National savings amount to only 15% of GDP, far below the global average of 28%. This low savings rate leaves millions of workers vulnerable, forcing them to rely on unregulated and sometimes usurious credit to make ends meet.

Focused Growth in Southern Africa and New Markets

Founded in 2019 by Bryan Habana and Deon Nobrega, Paymenow currently operates in South Africa, Namibia, and Zambia. The company plans to use the new funding to enter more African markets where traditional banking fails to meet workers’ needs.

Deon Nobrega, Paymenow’s CEO, said the loan marks a critical step to extend financial access to millions of workers. He stressed the importance of breaking the cycle of repeated debt by providing a solution based on steady income and financial stability.

Standard Bank views this partnership as part of a broader strategy to support African fintechs. The bank aims to show that collaboration between banks and fintechs can transform financial relations between employers and employees.

The early wage access market is growing fast worldwide. Research Nester projects the market to jump from $30.83 billion in 2025 to over $242.46 billion by 2034, growing annually at 25.75%. Paymenow meets rising demand for intermediate financial solutions, processing over one million transactions monthly in 2025 and serving nearly 500,000 active users, up from just a few hundred at launch.

Chamberline Moko