|Private, Benefit corporation|
|Industry||Financial Technology, Financial Services|
|Headquarters 🏙️||, |
Area served 🗺️
Number of employees
PayActiv is a financial technology company based in San Jose, California. PayActiv delivers financial services and earned wage access to unbanked, underbanked and those living paycheck to paycheck. It provides on-demand, real-time access to earned wages to reduce or eliminate timing related penalties and unnecessary fees, like bank overdrafts, late fees, payday loans and other expensive alternative financial services.
The solution is offered as a financial wellness service by employers to their employees, and PayActiv works with nearly 1,000 businesses, including Walmart. Through its mobile app, PayActiv gives users access to their earned yet unpaid wages. Users can transfer funds to their bank account, pay bills electronically, access cash gain discounts at retailer, hail an Uber or pay for Amazon purchases.
Along with earned wage access, PayActiv’s financial platform provides a holistic financial wellness solution to its users. They can allocate and save from their yet to be paid wages using the built-in savings tool, learn the benefits of saving small amounts of wages over-time, receive guidance from a financial health counselor, and find pharmacy discounts, all from their mobile phone. Businesses that use PayActiv see a reduction in turnover.
PayActiv was co-founded by CEO Safwan Shah, CTO Sohail Aslam and COO Ijaz Anwar in 2012 as a solution to the financial stress faced by millions of Americans who are living paycheck-to-paycheck. In October 2013, PayActiv was adopted by its first customer Jersey Precast Concrete. In June 2014 PayActiv raised $4.3M in funding. In 2015, PayActiv shared a demo at Finovate. On February 19, 2016, PayActiv announced Series A equity funding of $9.2M led by Softbank Capital. On December 13, 2017, Walmart, the largest private employer in the world, announced financial wellness services powered by PayActiv earned wage access for their 1.4 million associates. In May 2018, a Harvard Kennedy School working paper based on data from 16 PayActiv customers is published showing how PayActiv earned wage access lowers employee turnover by 19% and saves employees $30 on average by avoiding bank overdraft charges or a late payment. In July 2018 PayActiv joined the ADP Marketplace, giving ADP’s customers access to earned wage access through PayActiv. In September 2018, PayActiv announced Series B financing of $20 million from Generation Partners.
Throughout 2019, PayActiv advocated for earned wage access for paycheck-to-paycheck workers starting with the sponsorship of legislation in California to regulate the growing earned wage access industry. In June, the company released its documentary, It’s About Time looking at pay timing and its correlation with financial stress experienced by millions of working Americans. The film follows the stories of several working Americans living paycheck-to-paycheck. It also features commentary from CEOs, academic researchers, financial health experts and employees.
In September 2019, PayActiv announced that it had become a Public-benefit corporation, marking its commitment to produce a public benefit and operate in a responsible and sustainable manner. Raj Sisodia, co-founder and co-chairman of the Conscious Capitalism movement also joined PayActiv’s advisory board. Sisodia’s 2019 book, The Healing Organization: Awakening the Conscience of Business to Help Save the World included a chapter featuring PayActiv’s business model.  In 2019, PayActiv also announced partnerships with Visa and Fiserv to better deliver services to users.
PayActiv is offered by businesses to their employees as a voluntary financial wellness benefit. PayActiv fronts the accessed funds and all employees are eligible from day one irrespective of their employment status (part time/full time/exempt/non-exempt), banking status, FICO score or credit history because PayActiv is not a credit solution and there is no underwriting involved. A typical user pays a flat $5 membership fee per two-week pay period, only if they use the PayActiv benefit, and many companies, including Walmart cover a portion or all of the fee.
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