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Compare pay on demand options

Get up to $750 of your salary paid into your bank account before payday instantly.

Bria Horne
Bria Horne

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A "pay on demand" service is a form of short term loan that lets you borrow up to 25% of your pay cheque to a maximum of $750 ahead of payday, for a fee. Fees usually vary between $2 and $10, but can be as much as 5% of the amount borrowed. If the full amount is not repaid by the due date (usually the nominated date that you receive your pay cheque), you could be subject to further fees and/or interest charges.

These small, short term loans can be used for covering unexpected expenses in the run up to payday, such as vet bills, minor car repairs, or food and transport costs towards the end of the month.

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What's in this guide?

How do pay on demand services work?

Pay on demand services are app-based loan products that give you instant or fast access to a portion of your pay ahead of payday. They usually connect either to your bank account or to your employer. These loans are then usually automatically repaid once your employer pays you. In the case of most of these platforms, the process will look something like this:

  • Download the app and create an account
  • Request your money
  • Receive it instantly
  • Repay automatically when you receive your pay cheque

These apps are designed to help the millions of Australians who are living pay cheque to pay cheque. Borrowers can use these loans for small expenses such as travel costs or groceries, or to bridge the gap in funds for a larger essential bill. Their intended use is basically anything that an interest-free buy now, pay later service would be unable to cover. If repaid in full and on time, this type of finance is significantly lower-cost than traditional payday loans.

Types of pay on demand services available in Australia

There are three main types of pay on demand services available in Australia. These include:

  1. Employer offered services. Employer offered services (e.g. InstaPay by Employment Hero) are pay on demand services that are offered by your employer, but are coordinated by a payroll provider via a third-party app. This type of pay on demand service gives employees access to the money they earn as they earn it, rather than making them wait until their standard payday. Because third-party app providers charge employers to use their services, these are generally the lowest cost options for employees. Payments take two business days to clear into your account.
  2. Pay on demand apps. Pay on demand apps (e.g. Beforepay, MyPayNow) are non-bank third-party providers that charge a fee for you to borrow money ahead of your payday, without involving your employer. These apps generally charge the maximum rate of 5% to employees for the use of these services, but do not charge interest. These services usually do not perform credit checks. Payments take two business days to clear into your account.
  3. Bank offered services. Bank offered services (e.g. Commbank's AdvancePay) are provided by Authorised Deposit-Taking Institutions (ADIs). These services can be accessed instantly via your mobile banking app. If customers don't make payment in full by the nominated date they may need to pay interest fees. Payments are instant.

Features of pay on demand services

You may find the following features with pay on demand services:

  • Loan amount. You can generally borrow between $100 and $750 using pay on demand.
  • Minimum income requirement. You may be required to have a minimum income to use these services.
  • Repay automatically. Many providers link to your bank account for automatic repayment.
  • Quick access to funds. Employer offered services and pay on demand apps usually take two business days before you will see the money in your account. Bank offered services could see money in your account instantly.
  • Additional costs may apply. If you fail to repay your loan/prepaid salary on the allocated day, you may be charged additional costs.
  • Short repayment times. Repayment times are less than 1 month (by your next payday).

Compare pay on demand services

ServiceAmount availableCosts
CommBank AdvancePay$300 to $750
  • $5 for loans between $300 and $500
  • $10 for loans between $501 and $750
  • If the limit is not fully repaid by payday, you'll be charged the current debit excess interest rate of 14.90% on the overdrawn amount
BeforepayUp to $200
  • 5% fee
  • No interest charges
MyPayNowUp to 25% of your wages (limit of $750 per advance)
  • 5% fee
  • No interest charges
InstaPayAccess up to 50% of your salary (to a maximum of $250) per week through Employment Hero. Funds are available from $100 to $250 per transaction.
  • Flat rate fee starting at $2
  • No interest charges
EarndA portion of your income agreed on by your employer
  • Fees are covered by your employer
  • No interest charges
FupayUp to $200
  • 5% transaction fee
  • No interest charges
PayActivUp to $500
  • $5 per fortnight (if used)
  • No interest charges

Things to avoid when using pay on demand services

If using a pay on demand service, it's important to be aware of the following:

  • Overspending. Having consistent access to your pay early can lead to destructive spending habits.
  • Being unable to save. Accessing your money in small chunks can make it harder to budget and harder to save.
  • Getting into debt. Constantly borrowing from your next pay cheque can leave you with less and less money at the end of each month, which can lead to a spiral of debt.
  • High late charges. If for any reason your pay is later than usual, or you were to unfortunately lose your job, you could find yourself with high interest or fees to pay, when you're at your most financially vulnerable.

Pros and cons of pay on demand services

Pros
Cons
  • Lower cost than traditional payday loans
  • Potentially lower cost than credit cards
  • Straightforward to acquire
  • Don't usually require a credit check
  • Can encourage overspending
  • More expensive than traditional personal loans
  • More expensive than buy now, pay later services
  • High fees for late payments

How to apply

Generally, how you apply for a pay on demand service will depend on the type of pay on demand service that you are opting for.

Employer offered services:

  • You must be employed
  • Your employer must be signed up to the program

Pay on demand apps:

  • You may have to earn over a certain amount. For example, MyPayNow requires you to earn over $450 a week in order to qualify
  • You might not be eligible if you only receive Centrelink benefits
  • If you have irregular pay cycles, you may not be eligible
  • If you have major gambling habits, you may not be eligible

Bank offered services:

  • You may have to earn over a certain amount
  • You may have to be a pre-existing member of the bank. For Commbank's AdvancePay, you must have a Commbank account that your salary goes into
  • A credit check might be required

Pay on demand services vs payday loans

While reasonably similar products, there are some differences between pay on demand services and payday loans that can make them more suitable for different purposes.

What to consider with pay on demand

  • Suitable for small necessary expenses up to $750 that buy now, pay later providers do not cover
  • Can be used for bridging the gap in your funds for larger, unexpected costs
  • Only useful for borrowing over a short period of time (less than one month)
  • Useful when you need access to additional funds before payday
  • Pay advances can take up to two business days to clear
  • Typically lower cost than payday loans

What to consider with payday loans

  • Suitable for larger unexpected expenses (up to $2,000, $5,000 and even $10,000 loans available)
  • Can be used to finance short term financial difficulties
  • Longer repayment times (16 days to 1 or 2 years)
  • Available to bad credit applicants
  • Instantly accessible
  • Expensive forms of finance (most loans under $2,000 feature a 20% establishment fee and 4% monthly fees)

Frequently asked questions

More guides on Finder

  • Earnd

    Earnd is a pay on demand service that lets you access a portion of your paycheque before payday without paying any fees or interest.
  • PayActiv Earned Wage Access

    Learn more about how PayActiv's Earned Wage Access service can help you access up to $500 of your paycheque for a $5 fee charged fortnightly (only if you access your wage before payday).
  • MyPayNow

    Find out more about MyPayNow, the pay on demand service that gives you instant access to up to 25% (to a limit of $750) of your salary any time, anywhere, without involving your employer.
  • Employment Hero InstaPay

    InstaPay is a pay-on-demand service offered by Employment Hero that allows employees to access salary advances of up to $250 per week for a flat fee starting from just $2.
  • CommBank AdvancePay

    Find out more about AdvancePay, the Commonwealth Bank's new "pay on demand" platform accessible to creditworthy CommBank customers.
  • Beforepay

    Beforepay is a smart app that allows you to access up to $200 of your wages ahead of your next payday, while simultaneously offering you budgeting solutions.

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