Payactiv

Payactiv, Inc.
Company typePrivate
Industry
Founded2012; 14 years ago (2012)
Founder
  • Safwan Shah (CEO)
  • Sohail Aslam (CTO)
  • Ijaz Anwar (COO)
HeadquartersMilpitas, California, U.S.A.
ServicesEarned wage access
Number of employees
200 (2020)
WebsiteOfficial website

Payactiv, Inc. is a financial services company headquartered in Milpitas, California. Payactiv offers earned wage access and a financial wellness platform to employees of participating employers and payroll providers.[1]

Payactiv is the first-ever earned wage access provider, offering the service as of its founding in 2012.[2]

Products and Services

Payactiv offers a suite of financial wellness products and services, including a digital wallet, Visa debit card, and earned wage access.

Earned Wage Access

Payactiv integrates with payroll providers, such as such as ADP, Paychex, and Paycor, to provide early access to earned wages, known as earned wage access (EWA). Payactiv is the creator and first provider of earned wage access, sometimes referred to as on-demand pay or instant pay.

Using their payroll app or the Payactiv mobile app, users can access a portion of their paycheck early, with instant access for some users. Some employers offer this service as an employee benefit with no additional fees. For others, the fee ranges from free to $3.49.[3]

Digital Wallet

The Payactiv digital wallet is a fee-free checking account alternative including options for direct deposit, a Visa debit card, automated goal-based savings, online bill payment, and other common online banking features.[4]

History

Payactiv was founded in 2012 by Safwan Shah, Sohail Aslam, and Ijaz Anwar.[5] In 2014, the company announced $4.3 million in funding.[6]

In 2017, Walmart partnered with Payactiv to offer earned wage access to its 1.4 million employees. As of 2019, an estimated 380,000 of Walmart's 1.4 million employees used the app regularly.[7]

In 2018, Payactiv received $20 million in Series B funding from Generation Partners.

In 2019, the company processed $2.5 billion in early wage payments.[8] That year, the company announced a partnership with Visa that would allow users to receive and spend paycheck advances through a prepaid Visa card.[9]

In 2019, Payactiv sponsored California Senate Bill 472, which would create a regulatory framework for earned wage access (EWA) providers in California.[10] The bill limited the transaction fees and the number of transactions that EWA programs could provide.[11]

In 2020, Payactiv partnered with OnShift to provide early wage access to workers in healthcare and rehabilitation facilities during the COVID-19 pandemic.[12] In August, 2020 Payactiv raised $100 million in Series C funding, led by Eldridge Industries.[13]

In December 2020, the Consumer Financial Protection Bureau (CFPB) granted Payactiv sandbox approval to provide EWA. The CFPB ruled that Payactiv was not a traditional lender since its EWA program did not create debt, and as such was exempt from the Truth in Lending Act.[14]

As of 2021, the company had partnered with 1,500 employers, including Walmart, Wendy's, and Pizza Hut.[15][16]

References

  1. ^ "About Us". Payactiv. Retrieved 2025-12-30.
  2. ^ Malik, Aatif (2022-07-12). "What is Earned Wage Access?". Payactiv. Retrieved 2025-12-30.
  3. ^ "Program Pricing". Payactiv. Retrieved 2025-12-30.
  4. ^ "Get the Payactiv Visa® Card". Payactiv. Retrieved 2025-12-30.
  5. ^ "A Pakistani-American entrepreneur raised $100 million for his Fintech startup 'Payactiv.'". TechJuice. 2020-08-20. Retrieved 2021-04-07.
  6. ^ Blattberg, Eric (2014-06-26). "Funding Daily: Big-money Thursday". VentureBeat. Retrieved 2021-04-07.
  7. ^ Tergesen, Anne (2019-09-02). "Some Companies Offer a New Benefit: Payroll Advances and Loans". Wall Street Journal. ISSN 0099-9660. Retrieved 2021-04-07.
  8. ^ Crossman, Penny (2020-03-20). "Consumers seek early access to wages to soften coronavirus hit". American Banker. Retrieved 2021-04-07.
  9. ^ Isidore, Chris (2019-03-09). "Visa and Payactiv are now providing quicker pay for those who need it most - CNN Business". CNN. Retrieved 2021-04-07.
  10. ^ "The derailment of California's payroll advance law". American Banker. 2019-09-20. Retrieved 2021-04-07.
  11. ^ Opfer, Chris (August 1, 2019). "'Early Wage' Apps Aim to Disrupt Payday Loans, Two-Week Cycle". Bloomberg Law. Retrieved 2021-04-07.
  12. ^ Vanac, Mary (March 3, 2021). "OnShift innovations enable workers access to wages before payday". Cleveland Business Journal. Retrieved 2021-04-07.
  13. ^ Shen, Lucinda (August 17, 2020). "SoftBank lends WeWork $1.1 billion". Fortune. Retrieved 2021-04-07.
  14. ^ Crossman, Penny (2020-12-30). "Synchrony, Payactiv join CFPB's compliance sandbox". American Banker. Retrieved 2021-04-07.
  15. ^ Paoletta, Kyle; Nwanevu, Osita; Tharoor, Kanishk; Robins, James; Simons, Seth (2021-03-01). "The FinTech Industry Wants to Give Desperate Workers an Advance on Their Next Paycheck. It's a Trap". The New Republic. ISSN 0028-6583. Retrieved 2021-04-07.
  16. ^ "U.S. Hourly Workers Push to Get Paid Sooner". Bloomberg.com. 2020-04-01. Retrieved 2021-04-07.
allikas: https://en.wikipedia.org/wiki/PayActiv