How does Wagepay work?
Wagepay is a wage advance or pay on demand app that allows you to access a portion of your next payslip early. You’ll then have this amount deducted from your account once you receive your payslip. It advertises its advances as being paid into your account in 60 seconds and doesn’t conduct any credit checks.
Like most other wage advance apps, Wagepay allows you to advance up to 25% of your future pay, albeit up to a slightly higher maximum of $3,000. However, for repeat customers, you may have your advance limit increased.
Wagepay’s system is built on your usage, with Basic, Premium and Deluxe account tiers able to be unlocked based on how often you borrow from them. By using the app more frequently, you can gain access to perks like rewards points, cash giveaways, free credit score access and reduced fees.
What fees does Wagepay charge?
There are two main fees charged on Wagepay advances. These are:
- Flat fee: maximum of 5% of your advanced amount
- Interest: 24.00% p.a.
This means that, for example, an advance of $500 repaid in seven days’ time would come with a flat fee of $25 and interest of $2.30 for a total cost of $527.30. Of course, how much you borrow and the amount of time before it’s deducted from your account will dictate the cost of the advance.
What alternatives are there to Wagepay?
You’ll have a range of Wagepay alternatives to choose from if you’re looking to access cash. These include:
- Other wage advance apps: Wagepay aren’t the only players in the market. You might fancy a different service like MyPayNow, Beforepay and Wagetap. Check what fees each provider charges and any other selling points they have before you sign on the dotted line.
- Small cash loans: if you need more than $3,000 or want more than a few weeks to repay it, you might look at a cash or payday loan instead. These allow you to access as much as $5,000 and take up to two years to repay your debt, which you can apply for through Savvy. You’ll pay more overall in fees and interest per loan, though.
- Centrelink advance: if you’re on Centrelink benefits, you might be able to advance some of your benefits, too. This is only the case for some individuals or families on certain benefit types, so you might want to check to see whether it’s available and right for you.
- No Interest Loans (NILs): Good Shepherd offers NILs to eligible borrowers through not-for-profits around Australia. These loans can be used for specific approved purposes, from replacing essential appliances or paying your car rego to covering your rental bond, and are available for up to $3,000 (or $5,000 if you’re buying a car) with no interest or fees.