Given that inflation is impacting the budget of Mexican families and the rise in funding rates will make credit even more expensive, Mexican workers currently have a greater need for liquidity.
Hence, the concept of salary on demand in Mexico is gaining more and more business followers who offer their workers not to have to wait for the fortnight to collect what they have already worked and not go into debt.
Nima Pourshasb, CEO and co-founder of minu, the startupwhich is a pioneer of the wage-on-demand concept (on demand) in the country, stated that inflation (which reached 7.65 percent in May) is impacting the budget and spending of Mexicans and makes the need for liquidity greater.
He added that a third of the population asks for loans for their recurring expenses such as food or transportation, something that intensifies with the rise in prices of products and services due to high levels of inflation.
Payroll credit is not the best alternative to face economic emergencies, especially when only small amounts of money are needed. In this type of credit, payments are automatically deducted from the bank account where the payroll is deposited and to access it, an opening commission, life insurance and even unemployment insurance are charged, hence it is important to reflect before committing. with a credit that can be too expensive.
Salary on demand
Reference rates in Mexico, currently at 7 percent, will continue to rise, economic analysts predict. “The cost of credits will be much higher.”
The company offers immediate liquidity of the salary already worked, without having to wait for payroll payment. Companies pay the subscription to the platform; the worker makes the withdrawal for free and as many times as he needs.
Three years after starting operations, minu registers half a million collaborators and 650 thousand withdrawals, for an amount of 677 million pesos.
According to Nima Pourshasb, Mexican workers make two withdrawals on average in a fortnight for an average amount of 840 pesos, which are mainly used for emergencies and unforeseen events.
“Salary on demand it replaces costly ways of accessing liquidity, such as loans with high interest rates”, said the manager at a press conference.
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