SAN JOSE, Calif., March 26, 2020 /PRNewswire/ -- PayActiv, Inc. ("PayActiv" or "the Company"), the leading provider of employer-sponsored earned wage and tip access, today announced that it has waived its fees for millions of lower-income and hourly workers, many of whom are on the front lines in America's hospital systems, senior living centers, and recovery clinics during the COVID-19 global pandemic crisis. In addition, PayActiv will work closely with its 1,000+ employer partners to provide workers their earned wages and tips on-demand during the crisis, effective immediately.
As a Certified B Corp and Public Benefit Company, PayActiv provides earned wage access to employees at over 400 senior living and healthcare businesses, and has the potential to provide financial relief between paychecks to more than 80 million workers across the United States. The Company's financial wellness platform enables workers to gain access to their earned wages without having to wait for the two-week pay period to pass, and currently reaches over 3 million workers across healthcare, hospitality, retail, food services, and business outsourcing services. Other critical services that PayActiv provides via its ecosystem include access to Uber, Amazon cash, bill pay, prescription discounts, cash pickup at Walmart, financial counseling, savings and budgeting.
The Company's services are available via a mobile app 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 via PayActiv Visa Prepaid card or through Visa Direct instant deposit, on any V/MC debit card or as an ACH deposit into a bank account of the worker.
PayActiv's call to action came after they conducted a survey* of users on 17th March 2020, which found that nearly one third of workers (32%) have already had their hours reduced, and these numbers will likely only increase amid the COVID-19 crisis. The results have found that:
- 82% of workers are more worried 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, employee insurance or coverage
- 58% of workers have seen their expenses increase during this time
"The American worker is already under a great deal of financial stress and this unprecedented crisis has exacerbated the existing critical situation for millions of families that need immediate relief to make ends meet," said Safwan Shah, Co-Founder and CEO of PayActiv. "The crisis calls for never-before seen collective action by businesses and all Americans to help provide relief to the workers living paycheck-to-paycheck each month, whether that includes banks eliminating overdraft fees, utilities canceling late charges, landlords suspending evictions, or creditors temporarily halting interest charges."
PayActiv's mission is to bring security, 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. Businesses that partner with PayActiv see significant cost reductions through increased recruitment, engagement and retention. Employees love PayActiv because it eliminates the expensive between-paychecks tolls of payday loans, bank overdrafts and late fees. PayActiv also offers a suite of financial services that include savings and budgeting tools, bill payment and financial health measurement. PayActiv has won best in class awards in both FinTech & HRTech and is the provider of Earned Wage Access to Walmart.
In June 2019, PayActiv released a short film titled It's About Time. The documentary looks at pay timing and its correlation with epidemic financial stress being experienced by millions of working Americans. For more information, visit www.payactiv.com.
* Survey methodology: An online survey of more than 12,000 PayActiv users was conducted from March 17 to March 18, 2020 through the PayActiv app.
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