Beforepay Hits $1 Billion in Salary Advances and 1 Million Users

According to information released to the ASX, listed fintechs pay first Salary Advance growth, driven by a combination of user growth and machine learning driven credit risk decisions, continues its strong growth and path towards profitability, while providing working Australians with an award-winning ethical lending solution.

Beforepay provided salary advances of $628 million during FY2023, up 92% year-over-year. This brings the cumulative progress since inception to over $1 billion.

Continued strong growth was achieved during Q4 FY23 with salary advances of $162 million, up 51% over Q4 FY22, driven by both new customer acquisition and continued utilization by existing customers.

Despite the current difficult macroeconomic backdrop, earlier limit reduction efforts on reported defaults in Q3FY23 led to selective reduction of certain limits, reduction of limits for customers where credit worthiness had changed, and refinement of the credit model , we have seen a decline in defaults in Q4 FY23. More information will be provided in the company’s full Q4 FY23 Quarterly Activities and Appendix 4C Cash Flow Report to be issued at the market open on July 28, 2023.

Active user base of Beforepay grew by 35% YoY to 234K (FY23), up 5% over Q3 FY23.

In total, more than 1 million customers have now registered for the payment advance service of Beforepay.

As stated in the announcement, Beforepay’s substantial growth is consistent with its journey towards profitability, characterized by growth in user and advance numbers, sustainable unit economics and tightly controlled costs.

Active users (being 234K users) in Q4 FY23 had an average loan size of $341 and a 95% return rate.

In addition to this increase, beforepay was Recently recognized as 2023 Ethical Lender of the Year At the Global Pan Finance Awards.