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.
In fact, a study found that only one in five (21%) employees would describe...
*The Payactiv Visa Prepaid Card is issued by Central Bank of Kansas City, Member FDIC, pursuant to a license from Visa U.S.A. Inc. Certain fees, terms, and conditions are associated with the approval, maintenance, and use of the Card. You should consult your Cardholder Agreement and the Fee Schedule at payactiv.com/card411. If you have questions regarding the Card or such fees, terms, and conditions, you can contact us toll-free at 877-747-5862, 24 hours a day, 7 days a week.
1 Many (but not all) employers, government benefits providers, and other originators send direct deposits early with an effective of 1-2 days later. Beginning with your second direct deposit of at least $5 from the same source, Central Bank of Kansas City (CBKC) will post the funds to your Payactiv Visa Card when we receive it, rather than on the effective date. This may result in your having access to the funds sooner. The date CBKC receives your direct deposit and the effective date are controlled by the originator.