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Target Market Determination

A Target Market Determination (TMD) is a requirement under the Design and Distribution Obligations (DDO) introduced by the Australian Securities and Investments Commission (ASIC) as part of the Corporations Amendment (Design and Distribution Obligations) Act 2021. The TMD helps ensure that financial products are targeted to the appropriate customers and that product issuers meet their regulatory obligations. Below is a TMD document for Paylab's Pay Advance product that complies with the requirements of ASIC.

Target Market Determination (TMD) for Paylab Pay Advance

  1. Product Information

Product Name: Paylab Pay Advance

Issuer: Paylab Pty Ltd (ACN 650927325)

Product Description:
The Paylab Pay Advance is a short-term wage advance product that allows eligible employees to access a portion of their earned but unpaid wages before their payday. The product is designed to provide employees with a cash flow solution in times of need. The amount borrowed must be repaid within 62 days, and a transaction fee of up to 5% of the advance amount is applicable.

Key Features:

  • Advance up to$2,000
  • Transaction fee of up to 5%
  • Repayment via direct debit or manual payment
  • Maximum term of 62 days for repayment
  • If notified repayment date missed, 24% interest if repayment missed on principal for period up to 62 days will be charged
  • No late fee if paid on time
  1. Target Market

Target Market Description

The Paylab Pay Advance is designed for employees who need access to a portion of their wages before payday and can repay the amount within the specified term. The target market includes individuals who:

  • Australian Citizens and or Permanent Residents
  • Are aged 18 years or older
  • Need access to funds up to $2000
  • Are employed on a full-time, part-time, or casual basis
  • Have a regular and verifiable income from employment
  • Have a bank account for the receipt of funds and repayment of the advance
  • Have an Australian Passport or an Australian Driver’s Licence 
  • Are not experiencing significant financial hardship or unable to meet repayment obligations
  • Have the capacity to repay the advance within the 62-day term

Excluded Market: The following groups of individuals are excluded from the target market for this product:

  • Individuals who are under 18 years of age
  • Individuals who are unemployed or have irregular income
  • Individuals who are experiencing significant financial hardship
  • Individuals who do not have an Australian bank account or employment income
  • Individuals who are NOT Australian citizens or Permanent Residents 
  1. Product Description and Suitability

Product Features and Benefits

  • Access to funds: Individuals can access cash up to $2000, which can assist with unexpected expenses or to manage cash flow between pay cycles.
  • Transaction fee: A 5% fee is charged based on the amount of the advance, offering a simple and transparent cost structure.
  • Repayment structure: Repayments are made through direct debit ensuring automatic and easy repayments directly from the user’s bank account. On occasion, manual repayments will be requested directly to Paylab’s Bank Account.
  • Short-term solution: The product offers a maximum term of 62 days, making it a short-term cash flow solution.

Product Suitability

The product is designed for individuals who:

  • Have regular income from employment and need temporary cash flow assistance.
  • Can comfortably repay the amount advanced, including the transaction fee, within the 62-day repayment term.
  • Are aware that a 5% transaction fee was applied and a 24% interest will be charged on arrear loans
  1. Target Market Objectives

Reason for Product Issuance

The Paylab Pay Advance product is designed to provide employees with access to earned wages in times of need. The aim is to help individuals manage short-term financial obligations without having to resort to high-interest loans or  credit cards . The product is not intended to be used as long-term borrowing but rather as a temporary solution to cover urgent expenses between pay cycles.

Expected Outcomes

  • To provide eligible employees with a low-cost alternative to payday loans or credit cards.
  • To help employees avoid financial hardship by offering a temporary wage advance that is repaid within a short-term period.
  • To ensure that employees understand the terms of the product, including fees and repayment schedules, and can meet their repayment obligations without undue financial strain.
  1. Distribution Conditions

Distribution Method

The Paylab Pay Advance product will be distributed via:

  • Direct Employer Partnerships: Employers who are registered with Paylab and have agreed to offer Paylab’s Pay Advance service to their employees.
  • Online Platform: Employees can access the service through Paylab’s online platform or mobile app after verifying their identity and employment details.

Distribution Restrictions

  • Eligibility Check: Paylab will conduct an eligibility check to ensure that only individuals who meet the required criteria (e.g., age, employment status, financial capacity) can access the Pay Advance service. For direct consumer applications this will require the applicant providing Paylab with analytical access to their bank account where their regular income is deposited.
  • No Distribution to Vulnerable Groups: The product will not be marketed or distributed to individuals who are experiencing significant financial hardship or those who are not able to repay the advance within the required term.
  • Identification check: Paylab will conduct an identification check to verify individuals’ identity via their Australian Passport or Australian Driver’s Licence 

Appropriate Channels for Distribution

This product is designed to be marketed and distributed through approved employer channels, Paylab’s online platform directly to consumers, and direct-to-employee services.

  1. Review Period

This Target Market Determination will be reviewed annually, or earlier if there is a significant change in the product, the regulatory environment, or other relevant factors. Paylab will monitor the product’s performance, including customer complaints and other feedback, to ensure that it continues to meet the needs of the target market and remains compliant with regulatory requirements.

  1. Reporting and Monitoring

Paylab will monitor the product’s distribution and performance to ensure it is only distributed to the target market. Reports and information will be collected from the following sources:

  • Feedback from employers and consumers about the suitability of the product.
  • Customer complaints or disputes related to the product.
  • Ongoing compliance with the Design and Distribution Obligations (DDO) under ASIC regulations.

In the event that Paylab identifies that the product is being distributed to customers outside the target market, corrective actions will be taken.

  1. Contact Information

For more information, or if you have any concerns regarding this Target Market Determination or the Paylab Pay Advance product, please contact us at:

Paylab Pty Ltd
Email: appsupport@paylab.com.au
Phone: +61 477 206 304
Website: www.paylab.com.au