Fintech startup KOHO has announced a partnership with startup Hyr that will provide Hyr users early access to a portion of their pay at no cost.
Through the partnership, Hyr users can receive their paycheques directly to their KOHO account and after the first direct deposit, they will be eligible to access USD 100 of their pay early and at no cost or interest.
The early access to pay can come from any direct deposit source, whether it be Hyr or a government payment like Canadian Emergency Response Benefit or Employment Insurance.
The Canadian Payday Loan Association reports that nearly 2 million cash-strapped Canadians use harmful payday loans each year. Data shows that roughly 45% of payday loan users borrow to cover necessary expenses such as car repairs or utility bills and 55 percent of payday loans are for USD 500 or less.
This partnership with KOHO and Hyr aims to help Canadians avoid these predatory loans and maintain financial stability.
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