Workplace lending transforms through Wagestream, offering accessible loans at reasonable rates.
Wagestream Launches Fair and Affordable Workplace Loans in the UK
Wagestream, a leading fintech company in workplace finance and wellbeing, has officially launched its Workplace Loans product in the UK, supported by a £300 million debt financing deal from Citi as of August 2025. This product allows employers to offer loans to employees as part of their benefits package, targeting low and middle-income workers who struggle to access traditional credit.
The loans are designed as fair and affordable alternatives through several innovative features. Repayment is directly deducted from the employee’s salary, reducing the risk of missed payments and minimizing negative impacts on credit scores. There are no additional fees typically associated with traditional lending, such as origination, early, or late payment fees. Payment schedules are flexible and aligned with the individual's pay cycle, not fixed repayment dates.
Wagestream aims to foster financial stability for millions and deliver on its mission of fair financial tools for the everyday worker. The system eliminates administrative burden for employers, as payments are automatically reconciled within the payroll system. A direct debit is set up as a secondary safeguard to ensure repayments are met.
Individuals with thin credit files and on low and/or variable incomes are most affected by credit exclusion, making up to 30% of all UK adults. Wagestream's Workplace Loans offer features not commonly available through traditional financial institutions, providing a clear departure from traditional lending models that often penalize borrowers.
Portman Wills, Co-Founder of Wagestream, states that they are pioneering a new era of fair, responsible lending. The product represents a departure from traditional lending models that often trap borrowers in a cycle of debt. Employers can offer Wagestream's product as an employee benefit, helping users avoid missing repayments and promoting financial wellbeing.
Wagestream started piloting this product in April 2024 and is now rolling it out broadly to a client base covering about 2.5 million employees. The product supplements Wagestream's existing financial wellness platform, which helps employees stream earnings and manage budgets in real time. Together, these offerings represent Wagestream’s ongoing commitment to improving the financial health of workers through innovative fintech solutions.
Technology plays a significant role in Wagestream's innovative Workplace Loans product, ensuring seamless integration with business payroll systems. This fintech solution aims to revolutionize traditional business practices, offering a tech-driven approach to employee benefits.
The collaboration between Wagestream and Citi in financing the Workplace Loans indicates a symbiotic relationship between finance, technology, and business, demonstrating how advances in tech can leverage finance for the betterment of both companies and employees.
