SAN JOSE, Calif., January 27, 2021 –The California Department of Financial Protection and Innovation (DFPI) today entered into a Memorandum of Understanding (MOU) with Payactiv that establishes industry-best practices and enables the Department to understand the benefits that Payactiv’s market-leading earned wage access (EWA) solution offers to California consumers.
The Payactiv MOU acknowledges Payactiv’s Approval Order from the federal Consumer Financial Protection Bureau (CFPB), which confirms that Payactiv’s deduction-based EWA programs do not rely on debt and do not constitute “credit” as defined under federal lending laws.
The MOU incorporates Payactiv’s consumer protection guardrails—including its industry-low cost, accessible balance limits, and program fee caps—and will give the DFPI data demonstrating Payactiv’s positive impacts on California workers. The MOU is one of several that the department has entered into with EWA providers as part of its broader effort to evaluate the EWA industry.
Payactiv CEO Safwan Shah said, “We are encouraged that the DFPI has established best practices for EWA in California. Providing the DFPI with access to data will show the benefits that timely access to earned wages can provide to California workers, including those at Walmart, our largest client”. Shah continued, saying, “Payactiv helps workers to live the lives they’ve earned; navigate the ups, downs, and unknowns of life; and helps them to more fully participate in the economy they helped create. We are grateful to the visionary employers who offer Payactiv, and equally gratified that they see enhanced productivity, engagement, and retention from their workers as a result”.
PayActiv Inc., a Public Benefit Corporation and Certified B-Corp, provides holistic financial wellness services that include on-demand access to already earned but unpaid wages, as well as savings and budgeting, bill payment and financial health measurement tools. Businesses that partner with Payactiv see significant cost reductions through increased recruitment, engagement and retention. Payactiv is the only EWA provider with a CFPB approval order, the winner of the Innovative Payments Association’s Consumer Champion Award for 2020, and the winner of the Finovate 2020 Sustainability Award. Payactiv has also won best in class awards in both FinTech & HRTech and is the EWA provider to Walmart.
Learn more: www.payactiv.com