Fintech startup KOHO today announced a partnership with fellow Canadian 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 $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.
“It’s always been our aim to deliver transparent and intuitive financial products to Canadians,” explains Daniel Eberhard, Founder and CEO at KOHO.
The Canadian Payday Loan Association reports that nearly 2 million cash-strapped Canadians use harmful payday loans each year. Data shows that roughly 45 percent of payday loan users borrow to cover necessary expenses such as car repairs or utility bills and 55 percent of payday loans are for $500 or less.
This partnership with KOHO and Hyr aims to help Canadians avoid these predatory loans and maintain financial stability.
“Now, we’re glad to be able to provide Hyr users with the buffer they may need to make purchases or payments in a time of financial strain, without having to resort to harmful loans or going further into debt.”
“We’re thrilled that two Canadian companies have come together to form this great solution for our users,” echoed Joshua Karam, Co-Founder and CEO at Hyr. “Together we’re working to support Canadians when it matters most and help reduce people’s reliance on payday loans.”