Not only 40% of Americans don’t have $500 in savings, they are also unbanked or underbanked. For an employer, it’s incredibly important to understand the financial stresses facing their employees when they are paid every two weeks while life happens everyday.
Studies show that the borrowed money is used to pay for basic expenses such as paying utility bills, food and clothing expenses, car repair, or home repair. Not just that, most users of small-dollar loans also report taking steps to reduce spending and going without some basic needs (CFSI Levy and Sledge, 2012).
In spite of the difficult terms set against the borrower, when faced with an emergency people who do not have access to other forms of credit turn to small-dollar loans.
With PayActiv, your employees can access up to $500 of their earned but unpaid wages whenever they need to manage their expenses without the fear of late fees, borrowing from friends or taking payday loans.
PayActiv is proud to have eliminated the need for predatory loans a few million times for the underserved and underbanked users. Over 650,000 users across hundreds of employers have relied on PayActiv for Holistic Financial Wellness.
When asked, “What would you do if you didn’t have Timely access to your earned but unpaid wages?” The answer was stark and stunning:
When your employees have access to the PayActiv benefit, they can tap into earned wages to pay their bills, buy groceries, and keep the lights on, something every working individual deserves.
There are many great benefits to Earned Wage Access, but what is it and how can...