San Jose, Calif. – July 25, 2018 – PayActiv, a provider of employment-based holistic financial wellness services, has joined the ADP® Marketplace, the HCM industry’s preeminent ecosystem for business applications that can potentially reach over 600,000 employers representing approximately 26 million employees, to offer its full suite of employment-centric financial wellness solutions. Through the integration, ADP clients gain access to timely earned wage access, budgeting and financial counseling and savings tools.
ADP clients who choose to leverage PayActiv will provide their employees access to earned, but unpaid income, up to $500 to address immediate needs without the fear of overdraft fees, late fees or additional debt. Unlike competing financial wellness platforms, PayActiv operates through a membership model, going beyond timely earned wages access to address the true needs of the individual and help them build savings.
“Having timely access to earned income alleviates additional debt on already financially stressed individuals,” said Craig Cohen, General Manager of ADP Marketplace. “By offering PayActiv’s services via the ADP Marketplace, our customers’ employees now have on-demand access to money they’ve earned and can avoid costly alternatives.”
As PayActiv joins the ADP Marketplace, the Fin-Tax™, or high interest rates and fees associated with short-term, small dollar loans, becomes increasingly more burdensome for consumers. Based on research from CFSI, PayActiv estimates that the cost to juggle these punitive expenses is over $150 per month per employee, which adds up as time progresses.
Organization such as Ohio Living, one of the nation’s largest not-for-profit, multi-site senior living organizations and ADP client, found CFSI’s estimate to be true as it sought ways to help its employees navigate their financial well-being and avoid Fin-Tax. Corporate Executive of Compensation, Benefits & Payroll Kim Ruckman notes since the availability of PayActiv, Ohio Living employees are experiencing reduced stress, improved quality of lives and the organization is seeing higher retention rates
“Our employees using PayActiv, in conjunction with our services from ADP, tell me that they now have a new way to confidently manage their finances and even save more,” says Ruckman. “It has positively affected our employees’ morale while also serving as a tool for retention.”
Most recently, Todd Baker, Managing Principal at Broadmoor Consulting, included PayActiv in his analysis of salary-linked Fintech solutions, saying:
“Americans in low-income working families are struggling to deal with periodic small financial shocks while spending billions on high-cost payday loans, auto title loans and bank overdrafts that only make the problem worse. Employers suffer too, as financially-stressed employees are prone to health problems, absenteeism and high turnover.”
“Companies leveraging ADP Marketplace, can save as much as $50,000 annually for as few as 100 employees enrolled in PayActiv, “ said Safwan Shah, CEO and founder of PayActiv. “Our holistic approach towards financial wellness is a win for both employers and employees.”
ADP Marketplace is an online storefront designed to help employers create HR ecosystems for their companies using solutions from ADP and leading third-party partners, enabling companies of all sizes to extend the value of their workforce solutions seamlessly across their entire organization via a secure, single-sign-on process.
PayActiv is an award-winning holistic financial wellness platform for employees to get on-demand access to earned but unpaid wages. Businesses that partner with PayActiv see significant cost reductions through increased engagement and retention. Employees love PayActiv because it eliminates the between-paycheck financing fees of payday loans, bank overdrafts and title loans. PayActiv also offers a suite of services that include better banking products, savings and budgeting tools, bill payment and financial health measurement. PayActiv is backed by SoftBank Capital and won best in class awards in both FinTech and HRTech categories in 2016. Visit www.payactiv.com to learn more.
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*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.