The Growth of Salary Advance: A Challenge for Credit Unions


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Salary advance schemes are becoming increasingly popular with employers and employees and represent a potential threat to credit union payroll lending relationships for credit unions. This paper explains salary advance in more detail, evaluates some of the leading providers and examines how credit unions should respond, including addressing some of the weaknesses of salary advance from a financial wellbeing perspective and outlining the strengths of the credit union loan alternative.


The orientation of the discussion is to Great Britain, where salary advance is more prevalent among employers than in Ireland, but with Revolut introducing a salary advance option the latter and the likely development of this solution, this discussion will be of interest to all credit unions.

This paper is authored by Lindsay Melvin, who is currently CEO of Flexiwage (UK), Vice Chair of Fair Credit Charity and Board advisor to The Payroll Centre. Lindsay was previously CEO of the Chartered Institute of Payroll Providers, where he first engaged with credit unions, and he is keen to share further his ideas and experience with the sector. Contact Lindsay at