SAN FRANCISCO--(BUSINESS WIRE)--Today, Visa (NYSE: V) and PayActiv announced a new agreement that enables real-time1 access to earned wages disbursed by PayActiv. The demand for instant access to earned funds has now extended to traditional batch payroll – gone are the days of waiting two weeks to be paid. PayActiv partner businesses can now offer real-time deposit capabilities of earned funds to their employees by utilizing Visa Direct’s real-time push payments platform. The funds can be made available in real-time to a Visa debit or reloadable prepaid card, including the new PayActiv Visa® Prepaid Card.
There is a global shift toward increasing demand for instant access to funds driven by changing consumer expectations, partly fueled from the rapidly growing gig economy. As more tasks are being requested on-demand, gig economy workers expect to be paid out just as quickly as the task they completed. This demand disrupts the traditional payroll cycles and begs the question: “why is payday every other week?” Currently, more than 50 million Americans struggle to pay bills, and over 78% live paycheck-to-paycheck.2 This trend is leading to productivity loss at work, as one-in-three US employees say they are distracted by personal finance.3
“Visa Direct is helping to power a fundamental shift in how employees access wages they have already earned, outside of the traditional two-week payroll cycle,” said Cecilia Frew, SVP Global Commercialization of Visa Direct, Visa. “We are proud to be partnering with PayActiv to offer additional choice and flexibility to employers and employees when managing their financial well-being.”
With on-demand access to earned wages from PayActiv and the ability to receive them in real-time through Visa Direct, eligible employees can unlock the benefits that real-time access to funds provide and participating employers can have a competitive advantage and incentive to attract and engage employees. By implementing Visa Direct, PayActiv is able to give users real-time access to PayActiv’s on-demand payroll program, and allows employers to quickly implement the solution, with little to no set-up costs.
PayActiv Visa Prepaid Card
The PayActiv Visa Prepaid Card is the first general purpose reloadable prepaid card that offers real-time and recurring access to already earned, unpaid income. The timely access to these funds is intended to provide users liquidity and relief from unforeseen fees. These fees can reduce take-home pay by up to $200 every month4.
The PayActiv Visa Prepaid Card has worldwide acceptance at merchants that accept Visa debit cards. Keeping in line with its mission to be a social impact organization, PayActiv does not charge any monthly fees to cardholders and can act as a solution for those who do not have access to a traditional checking account.
Key cardholder benefits of the PayActiv Visa Prepaid Card include:
- Real-time access to earned but unpaid wages, tips, and commissions when using PayActiv.
- The entire suite of financial wellness services of PayActiv are included as an ancillary benefit on the PayActiv Prepaid Visa Card.
- No fee for loading earned wages on the card multiple times within a pay period.
- No cardholder fees for usage at merchants within the United States accepting Visa debit, or cash withdrawals at MoneyPass® ATMs.
- Feature-rich mobile app that enables cardholders to track spending and access to earned wages.
“With financial stress our industry needed earning enlightenment. The PayActiv Visa Prepaid Card is exactly that - a game changer and a win-win solution. Employers can get better retention, recruitment and engagement and employees can get on a path of holistic financial wellness with timely access to their earned but unpaid wages,” said Safwan Shah, CEO of PayActiv. “The PayActiv Visa Prepaid Card changes the paradigm of how workers get paid. PayActiv processed more than $1B in 20185 and we anticipate a significant expansion in both customer base and volumes during 2019.”
The PayActiv Visa Card is issued by Central Bank of Kansas City, Member FDIC, and processed by i2c.
About Visa Inc.
Visa Inc. (NYSE: V) is the world’s leader in digital payments. Our mission is to connect the world through the most innovative, reliable and secure payment network - enabling individuals, businesses and economies to thrive. Our advanced global processing network, VisaNet, provides secure and reliable payments around the world, and is capable of handling more than 65,000 transaction messages a second. The company’s relentless focus on innovation is a catalyst for the rapid growth of connected commerce on any device, and a driving force behind the dream of a cashless future for everyone, everywhere. As the world moves from analog to digital, Visa is applying our brand, products, people, network and scale to reshape the future of commerce. For more information, visit About Visa, https://usa.visa.com/visa-everywhere/blog.html and @VisaNews.
About PayActiv Inc.
PayActiv is an award-winning holistic financial wellness platform for employees to get on-demand access to earned but unpaid wages. Businesses that partner with PayActiv see significant cost reductions through increased recruitment, engagement and retention. Employees love PayActiv because it eliminates the expensive between-paychecks tolls of payday loans, bank overdrafts and late fees. PayActiv also offers a suite of financial services that include timely access to earned wages, savings and budgeting tools, bill payment and financial health measurement. PayActiv has won best in class awards in both FinTech & HRTech and is the provider for Earned Wage Access to Walmart. To learn more – www.payactiv.com.
1 Actual fund availability depends on receiving financial institution and region. Visa requires fast-funds enabled issuers to make funds available to their recipient cardholders within a maximum of 30 minutes of approving the transaction. Please refer to the Visa Direct team and the Visa Direct Original Credit Transaction Global Implementation Guide for more information.
2 2017: Career Builder Survey: Living Paycheck to Paycheck is a Way of Life for Majority of U.S. Workers
3 2017: Center for Financial Services Innovation Report: How Companies Can Invest in Workplace Wellness
4 2017: Center for Financial Services Innovation: 2017 Financially Underserved Market Size Study