PayActiv Joins ADP Marketplace to Provide Workers Quick Access to Earned Wages
SAN JOSE, Calif .– (COMMERCIAL THREAD) – PayActiv, a provider of holistic employment-based financial wellness services, has joined the ADP® Marketplace, the HCM industry’s preeminent ecosystem for business applications that has the potential to reach over 600,000 employers representing approximately 26 million employees, to deliver its full suite of employment-centric financial wellness solutions. Through the integration, ADP clients have access to tools for timely access to earned wages, budgeting, financial advice and savings.
ADP customers who choose to leverage PayActiv will provide their employees with access to earned, but unpaid, income of up to $ 500 to meet immediate needs without fear of overdraft fees, late fees, or additional debts. Unlike competing financial wellness platforms, PayActiv operates on a membership model, going beyond accessing timely earned wages to meeting the individual’s true needs and helping them save.
“Having timely access to earned income helps alleviate additional debt for those already under financial stress,” said Craig Cohen, Managing Director of ADP Marketplace. “By offering PayActiv’s services through ADP Marketplace, our customers’ employees now have on-demand access to the money they have earned and can avoid costly alternatives.
Fin-Tax ™, or the high interest rates and fees associated with small, short-term loans, have become increasingly painful for workers living on paycheques. Based on research from CFSI, PayActiv estimates that the cost to juggle these punitive expenses is over $ 150 per month per employee, which adds up over time.
Organizations such as Ohio Living, one of the largest nonprofit, multi-site seniors and ADP client organizations, found CFSI’s estimate to be true as it looked for ways to help its employees navigate their financial well-being and avoid End-Tax. Compensation, Benefits and Payroll Director Kim Ruckman notes that since PayActiv became available, Ohio Living employees are experiencing reduced stress, improved quality of life, and the organization is seeing rates higher retention rates.
“Our employees who use PayActiv, in conjunction with our ADP services, tell me they now have a new way to confidently manage their finances and even save more,” says Ruckman. “It had a positive impact on the morale of our employees while also serving as a retention tool. ”
Most recently, Todd Baker, Managing Director of Broadmoor Consulting, included PayActiv in his analysis of salary-related Fintech solutions, saying: “Americans from low-income families struggle to cope with periodic small financial shocks while spending billions on payday loans, auto title loans and bank overdrafts which only compound the problem. Employers also suffer, as employees in financial difficulty are prone to health problems, absenteeism and high turnover. ”
“Companies that take advantage of ADP Marketplace, can save up to $ 50,000 per year for as few as 100 employees enrolled in PayActiv, Said Safwan Shah, CEO and founder of PayActiv. “Our holistic approach to financial well-being is a victory for employers and employees. ”
ADP Marketplace is an online storefront designed to help employers create HR ecosystems for their businesses using solutions from ADP and leading third-party partners, enabling businesses of all sizes to expand the value of their businesses. Workforce solutions seamlessly to their entire organization via a one-sign-on process.
PayActiv is an award-winning holistic financial wellness platform that empowers employees to access earned but unpaid wages on-demand. Companies that partner with PayActiv see significant cost reductions through increased engagement and retention. Employees love PayActiv because it eliminates the cost of funding between paychecks for payday loans, bank overdrafts, and securities lending. PayActiv also offers a suite of services including better banking products, savings and budgeting tools, bill paying and financial health measurement. PayActiv is backed by SoftBank Capital and won the Best in Class award in the FinTech and HRTech categories in 2016. Visit www.payactiv.com
to learn more.
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