New features further integrate Seller and Cash App ecosystems to offer financial services, simplify payroll
Square announced the launch of two new features that enable Square Payroll customers and their employees to more easily and effectively manage their cash flow: On-Demand Pay for employees, and Instant Payments for employers. The new offerings, which leverage Square’s Seller and Cash App ecosystems, represent a major milestone in providing employees and employers more flexibility and control over their money.
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“The traditional payroll process is slow and rigid, creating cash flow constraints for employees and businesses alike. This is even more pronounced now given the current economic conditions”
“The traditional payroll process is slow and rigid, creating cash flow constraints for employees and businesses alike. This is even more pronounced now given the current economic conditions,” said Caroline Hollis, GM of Square Payroll. “Because businesses still run payroll on a fixed schedule, employees are paid days or weeks after they’ve worked. We created On-Demand Pay for employees so they can access their earnings when they need them, as soon as their shift has ended. For employers, it can take up to four days for payroll funds to move from their bank account to their team. With Instant Payments, employers can now fund their payroll instantly, getting money to their team faster.”
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On-Demand Pay
There are more than 80 million hourly workers across the country, many of whom regularly face cash flow constraints that are exacerbated by traditional biweekly and monthly pay schedules. Now more than ever, it is critical that employees have access to safe and simple financial solutions that help them better manage their money.
Now, each pay period, eligible employees using On-Demand Pay can transfer up to $200 of their earned wages whenever they need them, for free to Cash App, Square’s mobile payment service that allows individuals to spend, send, store, and invest money. Some employees will also have the option to transfer their on-demand pay to a linked debit card for a 1% fee per transfer, not to exceed $2. There is no change to how or when the employer processes payroll when employees use this feature; instead, Square Payroll automatically adjusts the employee’s earnings when the employer runs their next regularly scheduled payroll. Eligible employees can access On-Demand Pay directly within the Square Team App after clocking out, or through their shift summary email.\
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