Payactiv made EWA a must-have benefit and ushered a new era of holistic financial wellness
SAN JOSE, May 23, 2023 – Payactiv, Inc., the pioneer and leading provider of employer sponsored Earned Wage Access (EWA) and holistic financial wellness, has completed 10 years of delivering financial resilience to millions of hard working Americans. In recognition, Payactiv has traced the evolution and impact of EWA. From EWA’s Inception, Invention, Innovation, and Influence, through its Imitation, Impact and Insights, the dedicated website at ‘earnedwageaccess.com’ offers an immersive experience of the EWA journey.
Available only through US employers, Payactiv has so far served over 3.5 million employees with timely access to already earned but unpaid wages and helped them avoid up to $35 in fees and penalties upon each access. Cumulatively, Payactiv estimates it has helped avoid over $1.8 billion in fees and penalties for American workers.
According to Financial Health Network, consumers pay a staggering $300 billion in alternative financial services fees or up to 8% of monthly income. Payactiv used publicly available state data to calculate how much median wages were reduced by fees, penalties, and interest costs. The impact was even higher than 8% or up to $300 per month for median wage earners. “EWA may not be the panacea but it is certainly the necessary first step to avoid getting into a debt spiral,’ said Safwan Shah the cofounder and CEO of Payactiv.
Starting slowly, EWA gained acceptance mainly due to many Payactiv innovations and industry firsts, like zero cost to employers, multiple zero fee EWA access options for employees, an award winning mobile digital wallet, inclusion of spend options like Uber, Amazon, and bill pay, proprietary interfaces and embedded integrations into major payroll, T&A, HCM, and HRIS platforms, and much more.
A wealth of data also underscores the positive impact that EWA has on employers. In companies that have integrated EWA into their benefits packages, a staggering 89% of employees report feeling more motivated and productive at work. Turnover rates among employees who use Payactiv are lower by over 30% on average when compared with those who do not.
To summarize his view on the EWA decade, Safwan Shah said, “The true heroes of the EWA revolution are forward looking business and HR leaders. It is employer sponsorship that gives EWA uniqueness, and strong guardrails. There have always been external lending options, some call themselves EWA too, but they were never embraced by employers because they cared for their employees and wouldn’t intentionally send them to online and predatory lenders. The growth of EWA is 100% because of employer participation and sponsorship. Thank you, American business leaders, your employees thank you.”
To learn more about the history and impact Earned Wage Access has had on employers and workers over the past 10 years, read here: https://www.earnedwageaccess.com/.
Payactiv is an award-winning Certified B Corporation and the leading provider of Earned Wage Access. Payactiv offers a suite of financial wellness services designed to empower people to participate in the economy they helped create. Our platform and digital wallet serve over 4,000 businesses and level the playing field for millions of workers who struggle with cashflow between paychecks.
Payactiv is the winner of the “Best Innovative or Emerging Tech Solution” at the 2022 HR Tech Awards, a Silver Stevie® Award for our “All-in-One Digital Wallet and Livelihood Platform” and “Best Wellness Program” award at the California Excellence HR Awards.
Fatima Afzal[email protected]
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