September 2, 2019
Some Companies Offer a New Benefit: Payroll Advances and Loans
Typically, payday loans charge $15 for every $100 borrowed. Bank overdraft fees
often cost about $35. In contrast, PayActiv charges $5 per pay period when an
employee uses the service, which also includes financial counseling and online bill
June 30, 2019
The Ontology of Unpaid Earnings
PayActiv is a particularly interesting innovation. Marketing itself as a "financial wellness solution," it plugs into employers' time-and-attendance systems and allows employees to withdraw up to $500 of their earnings before payday, for a fee of $5 per pay period. These aren't one-time withdrawals: You get an unlimited number of transactions, including cash withdrawals, Uber rides and debit-card payments, for the one-time fee.
June 23, 2019
How Americans' financial behavior has changed: Less stock picking, more part-time work
If you labor in lower-income positions, including part-time "gig" jobs, the trend is toward getting pay into the hands of workers faster — often within a day or two of completing a shift. "As a society, we want everything — food, movies or whatever — in real time, so why can't payroll be on demand, too?" asked Ijaz Anwar, chief operating officer at PayActiv.
June 3, 2019
Don’t sideline earned income access
Workers’ financial health is no longer an HR issue; currently, it now affects a company’s bottom line. Not surprisingly, employee demand for EIA at workplace is high even in absence of any employer promotion. This is a no-brainer — when an EIA program only costs $5, who would pay $45 for a $250 payday loan or $35 for a bank overdraft?
May 9, 2019
How PayActiv app lets workers access their wages early
Head of human resources at Jenny Craig Australia and New Zealand Joshua Nunan said financial insecurity was a “real issue” for many Aussies, and a number of staff members had already used PayActiv since Jenny Craig signed up several months ago.
March 9, 2019
Visa and PayActiv are now providing quicker pay for those who need it most
Employees can use a smartphone app to download their money onto a Visa debit or preloaded card, or even a traditional credit card. That also helps workers who do not have access to a traditional checking account.
Dec 18, 2018
Fintechs Step Into Payday Alternatives Where Banks Fear to Tread
“Our ability and agility to seamlessly integrate into businesses pre-existing systems allows for an execution” that banks are unable to accomplish, Ijaz Anwar, PayActiv’s co-founder and chief operating officer. PayActiv has also partnered with community banks and credit unions to offer wage advances to financial institution’s employees.
September 18, 2018
Need cash now but you don't get paid until Friday?
"I have bills to pay, things to buy for my kids at home, and not having enough money to accomplish what I need to do is very stressful," said PayActiv user, Pearl Campos. When she needs money, she's able to tap into a service offered by her employer.
August 29, 2018
Payactiv - a new app - offers an alternative to predatory payday loans. Yahoo Finance's Dion Rabouin and David Pogue talked with the company's CEO, Safwan Shah.
August 16, 2018
Think about that for a minute. According to the Federal Reserve, 40 percent of Americans don't have $400 in savings to fix their water heater or some other emergency. But Shah says they're spending around $2,000 a year on fees and interest to get emergency short-term cash. He thought this was a problem that needed fixing.
More than a hundred companies have now signed up with PayActiv. A Walmart executive says there's been an "extraordinary" response from employees. More than 200,000 Walmart workers are now using the system.
Listen to this NPR All Things Considered story
August 5, 2018
Last week, PayActiv announced its service will now be available to more than 600,000 employers that work with payroll giant ADP.
Shah said his deals with ADP and Employee Loan Solutions’ tie-up with Brightside show there’s growing acceptance among employers that the best way to help financially stressed employees is not to lecture them about budgeting or savings but to offer them services that solve immediate problems.
“If somebody is hungry, do you give them a diet book or a meal?” he said. “At some point, you have to do something real.”
May 14, 2018
A Better Alternative to Payday Loans
More than 50 million Americans in low-income working families struggle to manage everyday cash flow. “… Walmart, one of the largest employers of low-wage workers, recently made PayActiv available to its employees. From December to March, 80,000 Walmart employees received more than $30 million through PayActiv." - Todd Baker and Snigdha Kumar.
Dec 13, 2017
Wal-Mart Will Allow Workers to Have Early Access to Pay
The world’s biggest retailer has unveiled financial-planning tools designed by Silicon Valley-based PayActiv Inc. and Even Responsible Finance Inc., a move that lets its employees access earned wages ahead of scheduled paychecks and avoid bounced checks or payday lenders.
Jul 21, 2017
Solving “more month than money” puzzle
PayActiv representatives help set up savings accounts, demonstrating how saving just a few minutes’ worth of wages over time becomes a way to pay debts or family expenses. They also guide users to credit counselors for one-on-one advice.
May 17, 2017
Better fintech alternatives to high-cost credit are already here
If these fintech products were widely available, they could benefit virtually all of the nation’s 10.4 million low-income working families and, indirectly, the 47 million individual members of those families.
January 11, 2017
Tools to Help Lower-Income Americans Save Money
One way to help address the financial wellness of lower-income Americans is to help steer them away from resources that end up hurting their financial condition in the long run. The company PayActiv offers a market-based workaround to this issue by collaborating with employers to provide an innovative benefit.
Dec 1, 2016
Nazareth Home and Sacred Heart Home showcase workplace innovation
"I was thrilled to see this program (PayActiv) and delighted to bring it to the staff. Right now, about one-third of our staff are using the program. It consists of an app that can draw from your account, or it can be used at a special ATM that is accessible to everyone on campus."
Dec 1, 2016
Startup Sense Podcast
"PayActiv helps low income employees, people making $25 and less. We let employees access their earned but unpaid wages when they get into financial emergencies, helping them avoid payday loans, and a variety of other fees and penalties."
Nov 14, 2016
Help in Advance
"Many workers are reluctant to ask for an advance," says Ulislam. "So by the time they request one, they may be in real trouble. They need the money yesterday, not in four or five days."
May 21, 2016
”What I found intriguing is that PayActiv would increase the velocity of money in our economy. In Shah’s model, the world’s largest bank resides within corporations, where the money that has been earned but not paid is stored; he estimates that over $100 billion per week is frozen in the U.S. alone. PayActiv can transfer that to the hands of employees who need it most.
July 6, 2016
How to access your hard-earned money before payday
“This is neither a loan nor an advance. It’s already earned. It’s just a technology solution. We change the frequency or velocity of money,” said Safwan Shah, founder and CEO of PayActiv.
Listen to this NPR Marketplace story
July 4, 2016
New Payday Options for Making Ends Meet
Goodwill is using technology from PayActiv, a start-up in San Jose, Calif., that uses employers’ wage and hours information to estimate their employees’ earnings. For a fee of $5 per transaction — of which Goodwill pays half as a courtesy to its workers — PayActiv advances the cash. On payday, it recoups the money directly from the employer.
PayActiv’s founder, Safwan Shah, talks with a missionary zeal about the potential impact. “The biggest bank in this country is the bank of the employer, and two to three weeks of salary for most people is stuck there,” he said. “This is a corporate responsibility issue.”
May 25, 2016
With Payday Lending Under Fire, These Services Turn Your Employer Into an ATM
New financial technology lets employees draw on a portion of their salary as they earn it. "Is waiting to get paid something that can create forced savings, or does it cause problems for low-income people? We’ve done studies to prove that what we are doing is actually helping people save more.”
May 21, 2016
Two New Employee Benefits Aimed at Millennials
What I found intriguing is that PayActiv would increase the velocity of money in our economy. In Shah’s model, the world’s largest bank resides within corporations, where money that has been earned but not paid out is stored; he estimates that over $100 billion per week is frozen in the U.S. alone.
May 23, 2016
Fintech's Leftward Turn?
Silicon Valley's PayActiv promises to be an alternative to "short term, short dollar, predatory lending products" used by 90 million underserved and working poor in the United States.
May 23, 2016
The Best of the Bunch from FinovateSpring
PayActive disrupts the destructive cycle of payday loans by giving workers access to wages they have already earned but have not yet been paid. The firm also offers a simple mechanism for savings and very comprehensive end-to-end tech.
May 12, 2016
How PayActiv’s Safwan Shah Looks to Eliminate the Vicious Debt Spiral
"I can find 10 solutions to borrow $1,000, $10,000, $5,000 but I can’t find a single good solution in our entire financial eco-system for someone who needs a $100 or $200."
May 12, 2016
Innovation Comes to Employee Benefits via PayActiv, Student Loan Genius
The dissonance between what you have earned and when it is delivered is painful for employees, and built on an antiquated system — the slow and expensive paycheck. PayActiv users can get the money in their accounts in realtime.
May 3, 2016
Financial Health Is the Next Wellness Frontier
Traditional financial wellness programs that focus mostly on education or retirement planning did nothing to help workers in dire straits, according to hospital Chief Financial Officer Kendall Johnson. So the hospital turned to a unique solution [PayActiv]: allowing employees to take out small advances on their paychecks.
April 4, 2016
Even among Credit Union Employees, Debt Spiral Threatens Financial Wellness
While credit unions, by their very charter, are committed to serving the financial needs of their member communities, a hard reality is that often, the community that is perhaps most important to the health of the credit union itself – its employees – is struggling with achieving financial wellness.
March 23, 2016
Improving Pay Day Timing
Who among us would have imagined that in 2016, virtually every aspect of our personal and business lives is “on-demand” and in “real-time?” Today, we access what we want, customized to our needs, now. To wait is passé, costly even. Instead, aligning time to our needs brings efficiency, transparency and savings.
November 26, 2015
11 Insights from HR Tech 2015
Because the value of the knowledge worker, the value of our understanding of what drives human productivity, all of that is increasing with better studies and data. All of that knowledge is coming into software and technology.
Mobile on-demand access to earned wages
PayActiv’s disruptive business model and industry-leading HR technology are the foundation for a powerful financial wellness program that makes a measurable difference in society.
November 12, 2015
New Budgeting Apps Aim to Disrupt Payday Lending
At a time when the industry is moving toward faster payments, a handful of entrepreneurs are looking to narrow the gap between an honest day's work and an honest day's pay.
September 9, 2015
PayActiv, Employee Aid as an Employee Benefit
They [PayActiv] are addressing a problem that for years, decades really, many of us have assumed there are no solutions for. We have accepted them as “the way things work” and never really thought about what could be different. This is an innovative solution to a problem that we have all just accepted.