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Comment by alvis | Hacker News Reader

I can imagine it can be a fintech opportunity. An AI that automatically performs a credit check behind the scene and lend you the money in advance, probably money in your account in seconds. It's not too hard actually.

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Why the hell would you perform a credit check if someone who works for you needs some of their salary two days early? Would you stop paying their salary if the credit check came back negative? Of course that seems like exactly the pointless and counterproductive behavior one would expect from a badly designed automated system.

> .. the pointless and counterproductive behavior one would expect from a badly designed automated system.

Badly designed automated systems are the life blood of our economy.

There are several providers which offers salary linked loans and advances already, and one of the benefits is that when it's an advance on your salary there's no need to credit check the employee because it's the company which will pay it back when your salary is due.

I can imagine something a lot simpler: ask employees the cadence at which they want to be paid out (daily, weekly, bimonthly, monthly) as allowed by law and pay them that way.

Yes, more bank transactions will cost the business more. That might be something the employee will have to pay for, or it might be something that governments require businesses to eat the cost on.

This is different from a pay day loan how exactly? I have bank app on my phone which claims that I can get an up to 35k loan in minutes

You’re describing an interest bearing loan. This is more like being able to withdraw money that you already earned, you just don’t have it because it’s not the 25th of the month yet.

Floatpays in the latest YC batch is one of these.

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