At present, many fintech startups are working on reforming the payday lending industry. For low wage earners, budgeting can be complex when income and bills are farther apart. There are few in the industry, who prey on the desperation of people by lending short-term loans with extremely high interest, forcing the customer into a deep pit of debt.
Largest social impact investment
That said, London-based Wagestream is working on an approach to close the gap between income and consumption needs, with a new method. Recently, Wagestream, which campaigns against payday poverty has secured the largest social impact investment ever in the UK. Reportedly, Wagestream is backed by tech figureheads such as Jeff Bezos and Mark Zuckerberg.