With the cost of living putting more pressure on Australians, the use of pay-on-demand services has surged. New data from Finder shows that 14 percent of Australians—about 2.9 million people—have utilized these services in the past six months to access their paychecks early.
The primary reason cited for using pay-on-demand services is the high cost of living. Seven percent of respondents needed early access to pay to cover bills, while four percent required funds for large, one-off expenses like medical costs. An additional three percent sought early pay for general spending, such as shopping or dining out.
The tendency to use these services varies by age.
Rebecca Pike, a money expert at Finder, noted that while pay-on-demand services are often cheaper than traditional payday loans, users still face fees. “These services can be useful for handling unexpected expenses, but they may also disrupt your budgeting and savings plans,” she warned.
Pike advised users to be cautious and avoid becoming reliant on such services. Instead, she recommended building an emergency fund or discussing the possibility of an advance with employers as more sustainable financial strategies.
