Demand for Earned Wage Access Increases as More Than 43 Million Americans Struggle Financially
PayActiv Processes $2.5 Billion, Helping American Workers Avoid Payday Loans, Overdrafts and Late Fees
PayActiv, Inc, a public benefit corporation, announced that the company processed more than $2.5 billion in 2019 and helped its users save over $240 million in fees from payday loans, overdrafts and late payments.
A recent report from the Financial Health Network revealed that more than 43 million Americans are struggling with multiple aspects of their financial lives. Those with poor credit in need of short-term cash increasingly turn to alternative lending solutions. TransUnion credit reporting estimates that non-prime borrowers collectively owe about $50 billion on installment products.
With access to the PayActiv benefit, over 1 million users were able to avoid expensive predatory alternatives that lead to crippling debt.
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“Timely access to earned wages while living paycheck to paycheck is a lifesaver. It is the first step towards taking control,” said Safwan Shah, founder and CEO of PayActiv. “With the PayActiv benefit we have helped our users avoid over $240 million in fees. According to a recent survey from The Workforce Institute, nearly three out of four U.S. employees need timely access to their wages.”
Now serving over 1,000 businesses, PayActiv provides an array of financial wellness services including electronic bill pay, budgeting and savings, financial literacy and counseling, as well as discounts and access to Uber and Amazon without the need for a debit or credit card. In 2019:
- More than 1 million employees from over 1,000 businesses at more than 20,000 locations have used the PayActiv benefit
- 81% of PayActiv users said they were more likely to stay with their current employer because of the PayActiv benefit
- Companies that use PayActiv experience 19 percent less turnover, and over $500 Million in turnover-related savings have been produced by PayActiv for its client partners
- Employees access the PayActiv platform more than 1 million times every month to pay unexpected bills and utilize other services including Amazon Cash, Uber rides, discounts, financial literacy, counseling and other wellness tools
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