Spayr, an alternative to overdraft

A Morbihan-based startup has developed a digital solution that allows employees to receive salary advances in one click. It has entered into an agreement with Skello Group, a specialist in software for restaurants, bars and hotels, to make Skello's product available to their customers.

FACTS

• Spayr has developed a digital salary advance solution:

  • Thanks to the confidential code, employees can access its platform free of charge: 

    • to obtain an advance on salary in one click subject to the remaining available balance

  • The advance is paid directly by the employer without the need for supporting documents. 

  • The employer has previously deposited 10% of the total amount of the payroll on a secure account.

• Spayr's remuneration is mainly a lump sum invoiced to the client company according to the number of employees.

• Spayr's platform has approximately 20 clients and 30,000 active employees

• Spayr has signed a partnership agreement with Skello, an HRIS software for the hotel and restaurant industry.

CHALLENGES 

• Complete its offer by adding Skello's technological brick: Spayr claims that the partnership will allow it to quadruple its activities by 2023, targeting 120,000 beneficiaries.

• An alternative to bank overdraft: the target group is generally blue-collar workers rather than high-income executives.

• Anticipated profitability by 2024: To date, Spayr employs about 10 people and plans to double its workforce in the near term to break even by 2024.

MARKET PERSPECTIVE 

• Salary advances are generally small sums "on average 200 to 300 euros" according to Spayr, but allow to avoid bank overdrafts.

• Other players are also in the market, such as :

  • Rosaly in an experimental phase with two major retail and personal services groups.

  • Stairwage

  • Or even Bling which advances the salary from its own funds. At the end of the month, it recovers this advance directly from the salary, retirement pension or unemployment benefit. 

• In spite of a strong competitive intensity, these startups aim to become "financial coaches" that avoid overdrafts, manage savings and provide advice on good personal financial management.