Financial Wellness Research and Insights
PayActiv team is dedicated to our single mission of providing the most effective and holistic solution for employee financial wellness. Here you will find the thoughts and ideas of PayActiv leadership on how to free your employees of financial stress and help them soar.
The new working class is far more concentrated in the service sectors – be they retail or restaurants, childcare or healthcare.
The challenge with this new work lies in its lack of financial security. That’s the issue that employers and employees continue to grapple with. Operating in highly competitive arenas, employers want loyal, engaged, and productive employees. Employees, at a minimum, seek greater economic stability.
Companies everywhere are now being quietly – and sometimes, not so quietly – undermined by the financial stress that employees experience every day. That stress is a key factor in employee turnover – an issue that’s having a tremendously negative impact on many businesses.
Indeed, it’s a wound that simply won’t heal on its own.
An estimated 90 million workers in the US are living paycheck to paycheck and even a tiny financial shock can cause late fees, bank penalties and the need for very expensive payday advances.
PayActiv has invented a FinTech solution that eliminates the cost and stress of waiting for the paycheck, giving employees access to a portion of their earned wages, at the time when they need it the most.
Payactiv financial services, delivered in partnership with employers as employee benefits help build a stronger healthier business.
Waiting two weeks to get paid may not seem very difficult if you have savings, insurance protections, assets or investments that you can use in case of emergencies. But, for 90 million Americans living paycheck to paycheck, this wait for payday is expensive.
This wait for paychecks has a direct cost of $1500 per year per family from loan fees, late fees and bank overdrafts fees.
PayActiv is the only zero debt solution for employees facing challenges in managing their monthly finances.
For 60 million families living paycheck to paycheck, PayDay loans are just the tip of a titanic financial iceberg.
PayActiv is delivering a much-needed, much-deserved financial product, to help the families who are living paycheck to paycheck.
We know we can save millions of families from the annual FinTax paid to banks and lenders and help them get that money back for their families, use it to buy within their communities, and enjoy a reduction in financial stress in the bargain.
Timing of pay and the velocity of money
"Every week a $100B are earned. I call it bank of the employer, nobody is making money off of it. It is just stuck, stuck stuck, it is wasted, as the keynote speaker said. We think we can change that. We can put a regulator on this oxygen which is being deprived of a millions of people and give the control to that individual. And that is the model that we have. It is a win for banks, we partner with banks today, they resell the service, we work with credit unions and they resell the service. And we work with large employers. "
Payday loans and short-term installment loans prey on the urgent need of people for small-dollar amounts and charge very high fees and interest to the borrowers. PayActiv has developed a fintech solution, a real alternative to payday loans that helps ordinary employed people avoid these debt-traps of predatory lending and become self-reliant in managing their expenses.
Alternative to Payday Loans: A self-reliant choice
Why is PayActiv winning?
Instead of offering high interest rates, treacherous loans and the downward spiral of debt directly to already stressed employees, PayActiv brings the employer into the equation and changes the velocity of pay.
PayActiv is winning because they are providing a real alternative to employees living on the edge of financial ruin.
PayActiv is winning by successfully translating advocacy into a thriving business model within the notion of the “shared economy.”
The Consumer Finance Protection Board has issued proposed rules governing payday and other small loans. Here is the overview and resources of what you need to know:.
What we are facing is a situation where 85% of the borrowers will no longer qualify to get access to small dollar amounts. No doubt, research and time is needed to sort out issues regarding the applicability, jurisdiction, and regulations governing the small dollar loan industry. But the urgency is real and palpable. This is not a climate change debate where the time scales are in decades.