Low-wage workers are being offered a controversial new type of high-interest loan of up to £25,000 through the “financial wellbeing” app Wagestream, a specialist lender that has signed deals with some of the UK’s best-known employers including Asda and Pizza Express.
The app is pitched as an employee benefit, and gives workers access to loans with a representative APR of between 13.9% and 19.9%, meaning at least 51% of borrowers will get that rate.
