Karma app aims to end payday loan misery trials in Scotland


A REVOLUTIONARY fintech (financial technology) app to end payday lending has been tested in Scotland with support from an ethical investor.

Karma allows employees monthly salary advances of £ 300 without interest. The smartphone application has conducted consumer tests with the support of Fortunis Capital, which specializes in investments that “transform society for the better”.

Employers who register with Karma can advance their staff by £ 300 from their salary to purchase goods and services from retailers.

Employees pay no interest or fees – and unlike other loan programs, using the app can improve their credit score.

Innovation Minister Ivan McKee praised the app, describing the company as “fintech seeking to solve a major societal challenge”.

He said: “Scotland has a global reputation for attracting innovative companies such as Karma and giving them the opportunity to grow and prosper.

“It’s a pleasure to welcome Karma here, especially as a fintech looking to solve a major societal challenge and improve the lives of Scots and the world.”

The company’s mission is to rid the UK of its individual debt problem, which currently stands at £ 340 billion.

CEO Minck Hermans said, “We have not only built a solution, but we are starting a global movement, to disrupt the short-term consumer loan market and eradicate the pain it causes.

“Employers are rewarded with increased employee productivity and engagement, as well as the recognition that they are doing the right thing; employees have more control over their finances; and our business partners are rewarded with more business. Everybody wins.

Fortunis COO Justin MacRae said, “We believe in over-exploiting innovation. Our investors share the same philosophy, the same mission.

“With Scotland open to attracting technological investments into the country’s social capital, this is the perfect environment for ethical fintech businesses to flourish. ”

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