Payactiv Transforms Earned Wage Access By Eliminating Access Fees

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Jun 30, 2022, 17:38 ET

Withdraws from its CFPB approval order to facilitate change

SAN JOSE, Calif., June 30, 2022 /PRNewswire/ -- Today, Payactiv, Inc., a certified B Corp and the leader in Earned Wage Access (EWA), announced the elimination of EWA access fees, making several of Payactiv's delivery options, including ACH, completely free.

Payactiv had previously waived its fees in 2020 during the onset of the COVID-19 global pandemic, and now, by eliminating access fees entirely, the company is creating another watershed moment and making EWA even more accessible for the millions of working Americans in need of relief in the current economic climate.

"Timely access to earned wages is the safest way for millions of American workers to meet livelihood needs without fees and penalties from other liquidity options. With additional zero cost EWA options, the bar has been raised again for the emerging EWA industry." said co-founder and CEO Safwan Shah. "To rapidly offer these additional zero-cost options, we opted to withdraw from the company-specific 2020 CFPB Approval Order," added Shah.

While the withdrawal does not impact Payactiv's offerings, it allows the company to eliminate access fees without delay. Payactiv has worked cooperatively with the CFPB over the last several years, including by addressing the CFPB's feedback in early 2021 to state that it "has an Approval Order from CFPB" in lieu of describing itself as "CFPB-Approved." Payactiv appreciates the opportunity to have worked with the CFPB on the Approval Order, and looks forward to further efforts to advance the industry.

Payactiv is the creator of EWA and a leading provider in the industry today. By announcing yet another avenue for free access to its EWA, Payactiv continues to disrupt the industry it created, establishing a new level of service for those who rely on Earned Wage Access to navigate their financial lives. In addition to EWA, it offers gas and prescription discounts, savings options, and powerful budgeting tools. Consumers will also continue to have access to optional expedited delivery methods for a voluntary fee when needed.

Payactiv will make the improved fee structure available to all new and existing clients in the third quarter of 2022 and expects most employers to transition to the new model within 2022.

About Payactiv

Payactiv, a Public Benefit Corporation and Certified B Corp, provides workers on-demand access to earned but unpaid wages. This approach eliminates the expense of payday loans, bank overdrafts, and late fees workers would otherwise resort to for liquidity. The company's holistic financial-wellness platform offers a suite of financial services that includes savings and budgeting tools, bill payment, and financial-health measurement. Payactiv is the winner of the American Business Awards Company of the Year for Financial Services award, the Innovative Payments Association's Consumer Champion award, a Finovate winner and finalist, and the recipient of numerous best-in-class awards in both FinTech & HRTech. Visit www.payactiv.com.

SOURCE Payactiv