SAN JOSE, California, March 26, 2020 / PRNewswire / – PayActiv, Inc. (“PayActiv” or “the Company”), the leading provider of access to employer-sponsored wages and tips, today announced that it has waived its fees for millions of low-income workers and schedules, many of which are on the front lines in U.S. hospital systems, senior living and recovery clinics during the global COVID-19 pandemic crisis. In addition, PayActiv will work closely with its more than 1,000 employer partners to provide workers with their wages and tips on demand during the crisis, with immediate effect.
As a certified B Corp and public utility company, PayActiv provides access to earned wages to employees of more than 400 senior housing and healthcare companies, and has the potential to provide financial relief between paychecks to over 80 million workers across United States. The company’s financial wellness platform allows workers to access their earned wages without having to wait for the end of the two-week pay period, and currently reaches over 3 million workers in the fields of healthcare, hospitality, retail, restaurant and business outsourcing services. Other essential services that PayActiv provides through its ecosystem include access to Uber, Amazon cash, bill payment, prescription discounts, cash pickup at Walmart, financial advice, savings and budgeting.
The Company’s services are available through a mobile application and are fully integrated with major payroll and T&A systems. PayActiv services have no impact on an employer’s cash flow. Funds are made instantly accessible through the PayActiv Visa Prepaid card or through Visa Direct instant deposit, to any V / MC debit card or as an ACH deposit to the worker’s bank account.
PayActiv’s call to action came after they conducted a user survey * on March 17, 2020, who found that nearly a third of workers (32%) have already seen their hours cut, and those numbers are only likely to increase amid the COVID-19 crisis. The results found that:
- 82% of workers are more concerned about financial issues than their health
- 67% of workers will seek payday lenders and access credit to meet their daily needs
- 60% of workers have no paid sick leave, insurance or employee coverage
- 58% of workers saw their expenses increase during this period
“The American worker is already under great financial pressure and this unprecedented crisis has exacerbated the existing plight for millions of families who need immediate help to make ends meet,” said Safwan Shah, co-founder and CEO of PayActiv. “The crisis calls for unprecedented collective action by businesses and all Americans to help relieve workers living from paycheck to paycheck every month, whether it is banks eliminating overdraft fees, utilities waiving late fees, homeowners suspending evictions, or creditors temporarily suspending interest charges.
PayActiv’s mission is to bring safety, dignity and savings to low-income workers through an award-winning holistic financial wellness platform that gives employees on-demand access to earned but unpaid wages. Companies partnering with PayActiv see significant cost reductions through increased recruitment, engagement and retention. Employees love PayActiv because it eliminates the costly fees between payday loan paychecks, bank overdrafts and late fees. PayActiv also offers a suite of financial services including savings and budgeting tools, bill paying, and financial health measurement. PayActiv has won the Best in Class award in FinTech and HRTech and is Walmart’s Earned Payroll Service Provider.
In June 2019, PayActiv has released a short film titled It’s time. The documentary examines the wage schedule and its correlation with the epidemic financial stress experienced by millions of American workers. For more information visit www.payactiv.com.
* Survey methodology: An online survey of over 12,000 PayActiv users was conducted from March 17 to March 18, 2020 via the PayActiv app.