PayActiv

PayActiv

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.

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. Through its mobile app, PayActiv gives users access to their earned but unpaid wages. Users can transfer funds to their bank account, pay bills electronically, access cash gain discounts at retailer, and make other 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, receive guidance from a financial health counselor, and find pharmacy discounts.

History
2012–2018

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.

Business Model
Overview

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.

Recognition

On May 13, 2016, PayActiv was awarded the Best of FinTech Show at Finovate.

On September 19, 2016, HR Executive awarded PayActiv the Top HR Product of 2016 award.

Timeline

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Payactiv
March 2, 2021
www.prnewswire.com:443
/PRNewswire/ -- PayActiv, the only vendor with an EWA program specifically approved by the Consumer Financial Protection Board (CFPB), welcomes Hancock...
Payactiv
March 2, 2021
www.prnewswire.com:443
/PRNewswire/ -- PayActiv, the only vendor with an EWA program specifically approved by the Consumer Financial Protection Board (CFPB), welcomes Hancock...
Payactiv
December 30, 2020
www.prnewswire.com:443
/PRNewswire/ -- The Consumer Financial Protection Bureau today issued a groundbreaking approval order (Approval) confirming that Payactiv's Earned Wage Access...
AlleyWatch
August 15, 2020
AlleyWatch
The Pulse of New York Tech
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