PayActiv’s industry-leading technology was created to protect and improve the financial wellness of workers. It provides team members with flexibility and control over access to their earned wages—as noted by Channel 9 News, factors which are more important than ever in the current health and economic crisis.
Ever found yourself days out from payday with around $1.63 in the bank? That common problem could soon be a thing of the past.
Picture this: Payday is still two weeks away, your bank balance has dwindled down to next to nothing — and then your car breaks down.
But a new app is hoping to make that common problem a thing of the past — by letting workers access the wages they’ve already earned early at the click of a button on their mobiles.
The PayActiv app launched in Australia recently after first launching in 2012 in Silicon Valley in the US.
Since then, a slew of big companies such as Walmart and Jenny Craig have come on board, and 1.4 million employees from Walmart alone have signed up.
It is free for businesses to set up but costs a flat fee of $5 per transaction for employees.
There are no contracts or subscription fees involved, and workers are limited to two withdrawals per pay period and a maximum withdrawal of $1000 (or up to 50 per cent of earned but unpaid wages) as built-in protections.
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.
“Unexpected things happen in life — whether it’s a bit of bill shock or getting a flat tyre — and sometimes you need to tap into a pool of funds, but a lot of Australians find that difficult,” he told news.com.au.
“For us it made sense to enable employees to tap into their own wages a little early without necessarily sparking up a conversation with their manager, which can be a bit awkward.
“This isn’t meant to be used all the time, and we’d prefer staff not to find themselves in that situation in the first place, but we understand life happens, and if people do find themselves in a tough situation, there is that safety net.”
The local launch of the app comes as new research reveals one in three Australians don’t have $500 up their sleeves in case of an emergency.
Channel 7 features PayActiv in a special national news segment. Waiting until pay day to get your money, is becoming a thing of the past for employees in Australian workplaces. The new service, is giving employees access to earned wages prior to payday to help when things get tough.
The Fintech Business Awards, one of the leading awards programs in the Australian financial technology sector, celebrates the leading individuals and organisations who demonstrate outstanding innovation and entrepreneurship.
Covering 18 categories, the prestigious event brings together Australian entrepreneurs, start-ups and established tech firms from across the fintech spectrum as well as private equity and angel investors to large financial institutions and professional services firms.
Kronos Incorporated announced the continued growth of the Workforce Dimensions Technology Partner Network, expanding its innovation ecosystem with the introduction of a PayActiv integration that helps customers build employee engagement – and deliver peace of mind – with financial wellness and earned wage access.
Wal-Mart Stores Inc., working with two financial-technology startups, will allow its 1.5 million-strong U.S. workforce to draw on their salary ahead of payday — or squirrel some of it away for a rainy day.
The world’s biggest retailer has unveiled financial-planning tools designed by Even Responsible Finance Inc. and PayActiv Inc., a move that lets its employees access earned wages ahead of scheduled paychecks and avoid bounced checks or payday lenders.
Staffers will receive eight free uses a year of the Instapay tool via Even’s personal-finance app, which is linked to the employee’s checking or prepaid account and Wal-Mart’s payroll system.
“Traditional approaches to workforce well-being often focus solely on physical health, but we know from listening to our associates that financial well-being is just as important,” Wal-Mart Chief People Officer Jacqui Canney said in a statement.
The move could address a painful reality of low-income hourly workers, whose cash flow is far from predictable. Income volatility has been increasing in recent years, according to research from the Pew Charitable Trusts, and studies from the Federal Reserve show a lack of emergency savings among many workers. The inability to weather an unexpected car repair bill or medical expense can send a low-income worker into a debt spiral, and financially stressed workers can be less engaged and not as productive.
Largest Private Workforce
PayActiv Chief Executive Officer Safwan Shah said in an interview that he had been talking with Wal-Mart about a collaboration for almost a year. The retailer has the largest private workforce in the U.S., opening up a big market.
“Every American worker faces unexpected and stressful between-paychecks expenses,” he said in the statement. “With on-demand access to earned wages, Walmart associates will be able to save more, avoid the financial traps that reduce their take-home pay, and get a level of stability that few service sector employers provide.”
PayActiv, an award-winning fintech company with a unique “between pay check” financial wellness benefit, today announced that Don Peppers, one of the world’s leading customer experience authorities, has agreed to join it in a national campaign to help employers reduce or eliminate some of the financial stresses that so frequently distract employees.
“My entire professional life has been dedicated to improving the customer experience,” Peppers said, “and I’ve always insisted that the quality of any company’s customer experience depends on its workers – the folks who man the cash registers, serve the food, care for the elderly, answer the phones, or check on a guest’s satisfaction. So I’m delighted to have the opportunity to join in PayActiv’s campaign to improve how these workers are treated.”
“The best possible kind of customer service,” Peppers said, “comes when a company’s employees are empathetic, paying attention to and engaging with the customers they’re serving. But if your people are occasionally distracted by their own financial issues – well, no amount of training can prevent this distraction, and the quality of your service will take a hit. PayActiv’s solution takes direct aim at this very common problem, and results so far have been remarkable!”
“Before joining in this initiative,” Peppers said, “I reached out personally to more than a dozen business leaders in a variety of industries, and I’ve been surprised and encouraged by their enthusiasm for the concept. I believe PayActiv’s remarkably simple and direct solution represents an idea whose time has come. Plus,” he added, “it’s simply the right thing to do for your employees, if you really care about them. This is a good thing to do.”
PwC reports that nearly one-third of all employees is distracted by personal financial issues while at work, with almost half of them spending three hours or more each week handling personal finances at work.
Commonwealth Bank data has revealed that more than a third of Australians are spending more than they earn each month.
Not only are Australians overspending, but the new data reveals this overspend contributes to a large proportion of Australians struggling with financial wellbeing. Around 46 per cent believe they are not progressing towards their financial goals and just as many (45 per cent) of Australians are uncomfortable with their current level of spending.
The data also indicated more than half (56 per cent) of people would not have enough savings to handle a temporary loss of income and one in three Australian households would be unable to find $500 in an emergency.
One of the less obvious impacts of flat incomes, rising costs and big mortgages or rents is that more Australian households are under financial pressure, and so choose to turn to various unsecured lenders to tide them through.
Many of these are online lenders, offering instant loans, and confidential settlements. Re-borrowing rates are high, once they are on the hook inside the lenders “portal”.
We think more than $1 billion in loans are out there, and our research shows that such short term loans really do not solve household financial issues.