When companies start to grow, they typically start to consider different ways to pay their employees other than cash. With a growing number of employees, managing cash payouts becomes a huge headache and waste of time. (Learn more about the reasons why you should stop paying salaries in cash).
To digitize your payroll process in Egypt, you can either work with a bank to open bank accounts for each employee, or you can start to pay your employees onto a mobile wallet.
In order to make the right choice for your business, you need to be fully aware of the benefits of each option.
Banks🏦:
Higher Spending limits:
A bank account gives your employees a relatively higher spending limit compared to wallets. The maximum monthly spend limit for mobile wallets is EGP 100,000 and EGP 30,000 daily.
Unlimited balance:
A bank account can hold an unlimited amount of cash. Most mobile wallets have a balance maximum limit of 100,000 EGP, so keep this in mind when deciding whether to pay your employees onto a mobile wallet or bank account.
Free Cashouts from your bank’s ATM:
Employees will be able to cash out for free from the ATMs that belong to their bank. However this may not apply at other ATMs. See more details below on the benefits of paying your employees onto mobile wallets.
Mobile wallets📲:
Fast & Frictionless
One of the main advantages of paying salaries onto a mobile wallet is how fast it takes to set up payroll for your company. With axis, your company can get onboarded and started on the same day. With banks, on the other hand, it can take several weeks to open a bank account for your company, and even longer to set up payroll.
Pay employees on weekends & holidays
The other advantage of paying employees onto a mobile wallet is that you can pay salaries at any time, including weekends and bank holidays, and the salary will arrive instantly onto their mobile wallet. With banks, you are restricted to bank working hours which is usually 9 AM to 3 PM and this excludes weekends and public holidays.
Affordable pricing, no hidden fees
When you decide to pay your employees onto a mobile wallet like axis, you will pay a monthly subscription fee for the company. It’s a pay-as-you-go model so you only pay a small disbursement fee when you disburse salaries to employees. There are no admin fees, no hidden fees, and no minimum balance requirements.
Flexibility in adding or removing employees from payroll services
Paying salaries onto a mobile wallet is more suitable for industries with a high employee turnover such as the restaurant industry, construction, last mile delivery, or general courier services. Opening a wallet for employees or contractors is fast and seamless. They are only required to have an ID and a working mobile phone line in their name. Additionally, when an employee departs from the company, there are no ongoing expenses associated with promptly terminating the wallet account.
Withdraw cash from anywhere!
Once the employee receives their salary, they can literally cash it out from around the corner, from any ATM, or from one of 250,000 Fawry branches/kiosks. Banks and ATMs are not on every corner, especially in small towns and rural areas. Many mobile wallets charge a percentage fee for withdrawing cash from ATMs. With axis, employees get one free cash withdrawal a month via ATM, and then they pay a flat 10 EGP per ATM cash withdrawal. If they choose to withdraw cash via Fawry it will cost them 1%.
Managing salary advances & reimbursements
When you pay employees onto a mobile wallet like axis, you can enable them to ask for a salary advance directly from the mobile wallet. This can take the hassle of managing employee salary advance requests and free up cash-flow. You can also reimburse them for any out of pocket expenses directly onto the mobile wallet.
More payment options
Compared to banks, wallets offer your employees a wide range of payment options. For instance, employees can pay directly with their mobile wallets at any merchant who accepts QR code payments. With axis, they can also issue virtual Visa cards to pay for anything online or to set up monthly subscriptions. They can also pay their bills or donate to a charity of their choice from the mobile wallet.
This was a quick comparison highlighting the benefits of sending your employees their salaries onto a bank account versus a mobile wallet.
If you are interested in learning more about mobile wallets and how you can register and start sending your employees’ salaries instantly visit axis website or click on the below button to leave your company details and we will be in touch to answer any other questions you may have and to help you get started!
