PALO ALTO, Calif.--(BUSINESS WIRE)--Activehours, the company that helps people get their pay when they want it, today announced a new feature called Balance Shield that helps users avoid overdraft fees. Balance Shield monitors users' bank accounts and automatically transfers up to $100 from their paycheck if their balance falls below $100. This feature is another way Activehours gives users more power and flexibility with how they’re paid compared to the traditional bi-weekly pay cycle.
“We’re creating a future where money works better for everyone,” said Ram Palaniappan, Activehours founder. “We’re using technology to create smarter paychecks that work intelligently for people. With the old school pay cycle, the money you’ve earned sits out of your reach while you continue to have bills and daily expenses. With a smart paycheck, your money goes where it’s needed, when it’s needed.”
The traditional pay cycle creates widespread and costly issues for many. Nearly a quarter of people who frequently overdraft their accounts pay the equivalent of one or more weeks of wages in these fees annually, according to a recent survey from The Pew Charitable Trusts. In total, Americans paid $32.5 billion in overdraft fees in 2015, up from $31.7 billion the previous year, according to the research firm Moebs Services. For those who try to follow a budget, these fees can throw off financial planning and stability.
LaDonna Moaney, an Activehours beta user from New Jersey, shared her Balance Shield story, saying, “I was using Uber to run some errands. By the time I reached my last destination of the day, I realized I would have to overdraw my account a bit to get home. That’s when it happened. Right before I had to call my last ride, my money from Balance Shield came through and saved my butt.”
“At Activehours, we believe you should be paid for the work you’ve already done when you want or need it, which is why we’ve given the paycheck superpowers,” added Palaniappan. “There’s no reason for anyone to have to wait two weeks or more to get access to their money. In a world where technology gives us instant access to food, cars and more, pay shouldn’t be any different.”
Balance Shield works best in conjunction with Lightning Speed, another opt-in paycheck option from Activehours that gives people instant access to paychecks rather than waiting for an overnight transfer. Lightning Speed and Balance Shield combined create a smarter and faster paycheck that reduces the stress of having to manage your money.
“As more and more Americans start to pay attention to their financial health, it’s encouraging to see fintech innovators addressing some of the challenges consumers face when managing their money,” said Jennifer Tescher, president and CEO of the Center for Financial Services Innovation. “While regular bank balance monitoring remains a critical financial health habit, a solution like Balance Shield can be a helpful addition when money is tight.”
Anyone paid hourly with an online timesheet can download the app and sign up for Activehours without their employer’s involvement. Activehours is already working with people from over 10,000 companies. Rather than charging fees or interest, Activehours is community supported. People decide what to pay, based on what they think is fair and what they can afford.
Balance Shield is available to all Activehours users on both Android and iOS through an enrollment option on the app’s home screen. Additional details about Balance Shield can be found here.
Activehours is revolutionizing the way people get paid and making money work better for everyone. Instead of being stuck in the traditional pay cycle, Activehours lets you access the money you've already earned when you need it. Founded in 2013, Activehours is driving consumer-empowered finance through mobile technology by freeing up more than $1 trillion held up in America's pay cycle. For more information on Activehours or to download the app, visit activehours.com.