WSJ: A Better Alternative to Payday Loans Using ‘Salary Link’

A Better Alternative to Payday Loans Using 'salary link'

Harvard’s Kennedy School validates the PayActiv Model

Not only is the PayActiv benefit validated by best research (The Power of the Salary Link), but it is also very well-received by users. When asked, 81% of users said they were more likely to stay with their employers due to the PayActiv benefit. The model works because users benefit from a variety of services to help them take on the many different financial challenges they face.

PayActiv helped employees avoid over $35M in direct Fin-Tax® costs in 2018

“PayActiv costs the employee $5 in any month the product is used (although employers frequently subsidize all or part of the fee). Meanwhile, the typical overdraft or payday loan costs around $35. And PayActiv is available to all employees regardless of past credit history.” – Todd H. Baker and Snigdha Kumar, Harvard Kennedy School

The Costs of High Turnover and Low Engagement

Employers face a variety of different problems. Not only are employees frequently leaving, but they are also less engaged and productive. This costs businesses a lot of money. To the tune of $1.5 Trillion annually (Turnover + Financial Stress). This is equal to roughly 10% of the US’s GDP!

A Proven 19% reduction in Turnover

Holistic Financial Wellness pays off. A Harvard Kennedy School study found that “…turnover rates [were] 19% lower among users of PayActiv.” For businesses, this means millions of dollars saved in annual turnover costs. For employees, this means millions saved in overdrafts, late fees and from predatory institutions.

“…research also found that such employer-sponsored financial products may improve employee retention, with turnover rates 19% lower among users of PayActiv.” according to Todd H. Baker and Snigdha Kumar

Holistic Financial Wellness

Learn how PayActiv measurably reduces employee financial stress and employee turnover.

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Access is more than a paycheck.
It's peace of mind.

Access is more than a paycheck. It's peace of mind.

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