Get your pay in advance with TapMyPay for a 5% fee.
TapMyPay is a pay on demand service that allows you to access part of your paycheck in advance. The minimum advance amount is $50, while the maximum is $750. How much you can borrow will depend on your pay schedule and the overall health of your finances, as per your bank account. There is a fixed fee of 5% charged on the borrowed amount, and no interest or late fees are charged. The borrowed amount, inclusive of the 5% fee will be automatically deducted from your account on the next pay day.
How does TapMyPay work?
With TapMyPay you can access part of your paycheck before pay day. It’s essentially a short term loan. This may be useful in case of emergencies and unexpected bills. You can sign up for the service on their website. As part of the process, your identity will be electronically verified. If that fails, you may need to provide ID verification. You’ll also need to connect your bank account when you sign up. This enables the service providers to detect your income and pay schedule. Based on this and the overall health of your bank account, your credit limit will be set. This process is encrypted and fairly standard. You can then request a cash out and repay the advance, with the 5% fixed fee on your next payday. You’ll have to repay the entire amount due before requesting for another advance.
What features does TapMyPay offer?
- No interest. No interest is charged on your advance.
- Borrowing limits. The minimum you can borrow is $50, while the maximum is $750 per payday cycle.
- Instant approvals. The process and verification and connecting your bank account is fast and approvals are instant
- Fast turnaround times. You can expect the advance in your account within 5 minutes of requesting cash out.
- Free sign up. You won’t be charged for signing up. You’ll only be charged when you request an advance.
- Automatic payment deductions. Your repayments will be deducted automatically from the bank account you’ve connected. You should make sure you have sufficient funds to avoid direct debit dishonour fees charged by your bank.
- Account management. You can manage your account and repayments through their web portal.
- Security. The process of connecting your account is encrypted and fairly standard. The service provider will only be able to access a read-only copy of your bank statements, allowing them to detect your income, pay schedule and overall account health.
- No credit checks. No credit checks will be performed when you sign up for TapMyPay. Instead, your bank account health will be used as an indicator of your ability to repay the loan.
- Advance for Centrelink payments. You can get an advance of up to 20% of your Centrelink payments and other government benefits. These payments should not be more than 50% of your total income.
- Early repayments. You can make early repayments. TapMyPay claims they don’t charge any fee except the 5% fixed fee, so early repayments are likely to be free.
How much does TapMyPay cost?
There are 2 costs you should consider when it comes to TapMyPay. This includes:
- The amount advanced to you.
- Flat 5% fixed fee. No matter how much you borrow, you will be charged 5% of the amount you’ve borrowed. For a $50 advance, that would be $2.5. For a $1000 advance, that is $37.5. Keep in mind that this fee will be charged every time you request for an advance.
TapMyPay claims not to charge interest, hidden fees or late fees.
- If you can’t pay by the due date, they advise you to get in touch with them before your payment is due. They don’t charge dishonour fees, but you could be charged a dishonour fee from your bank if the direct debit falls through. They will contact you and attempt to recover the payment through your bank account. If you’re in debt even after 62 days, they can engage in debt collection. Whatever costs are incurred in this debt collection process will also have to be covered by you.
Does TapMyPay do a credit check?
No, TapMyPay does not perform a credit check. However, they do use your bank statements as a way of determining whether or not you’re able to repay the loan. They will use this information to decide whether or not to accept your application.
What should I be aware of with TapMyPay?
- Failing to repay the loan. In case you fail to repay the borrowed amount within 62 days, they can engage formal debt collection services.
- TapMyPay is a loan. While you’re technically borrowing part of your paycheck in advance, this is still a loan. The lender is providing you with funding in advance, on the assurance that you’ll be repaid in the near future. This means that you’re bound to the terms of the contract, even if no interest is charged.
- Short terms. Unlike standard personal loans, TapMyPay is a form of short term loan. That means that you have a short window to repay the loan, meaning your next payday. Under extenuating circumstances, you may be able to request for deferral for a single cycle, but the maximum terms are 62 days. They will not extend it beyond 62 days.
- Borrowing when there isn’t an emergency. Getting your pay early may seem attractive, but you should approach it with caution. Ideally, you should only opt for advance pay in case of an emergency. It’s easy to build a habit of dependence and overspend, given how easy it is to access credit. It may, however, wreak havoc with your budgeting and financial planning. Keep in mind that while you can get part of your pay in advance, you’ll still have to pay it back.
- Your credit score. While TapMyPay doesn’t perform credit checks when you sign up, they may still report any negative credit behaviours. This will be reflected in your credit report, and affect your chances of getting credit in the future.
Am I eligible to apply for TapMyPay?
To be eligible to use TapMyPay, you will need to be:
- An Australian resident.
- At least 18 years old.
- Able to pass an identity verification check. They will ask for your email address, name, date of birth and mobile number. In case they can’t electronically verify your identity, they may ask for identity documents.
- Employed and receives pay regularly. This can be either weekly, fortnightly or monthly.
- Earning at least $300 per week. 50% or more of your income should come from your employment.
- Receiving your pay into an Australian bank account.
How do I sign up to TapMyPay?
You can sign up for TapMyPay through their website. It’s a relatively short process that involves identity verification. You’ll also need to enter your bank login details to link your bank account.