Fintech tackles employees’ fund challenge with new app
Last Mile Financial Services Limited, a Fintech startup, has launched a payment app called Pay Masta. The app allows companies’ employees to access funds for emergency situations before their salaries are paid.
Speaking at the launch in Lagos, the Co-Founder of the company, Gerald Erih, said that the solution was borne out of a genuine response to employees’ payment challenges.
He said: “We observed that in Nigeria, about 80 per cent of workers live paycheck to paycheck. So, we developed this solution to enable them not just to have access to the money they have earned anytime they need it, but also to help them plan their finances and track their expenses so that they can live debt-free.”
Erih said the firm found out that many loan apps out there are making things difficult for people instead of making things easier, stressing that they charge high interest, which makes the borrower worse off at the end of the month. He said the firm was on a mission to rescue working-class Nigerians and by extension, Africans.
Already, the startup said it has signed up 20 Nigerian companies whose employees are now using the Masta Pay app to access interest-free to meet their financial needs pending the payment of their salaries by their employers while noting that 75 other Nigerian companies are being processed to be onboarded on the platform.
With the success in Nigeria, the company said it was working towards closing a new funding round, which would enable it to expand the business across Africa to address the continent’s payment challenges.
The startup said it was able to deploy its solution in Nigeria with contributions from angel investors within and outside the country. According to the company, Microsoft also contributed to its success with tool support worth over $300,000.