| Company type | Private |
|---|---|
| Industry | |
| Founded | 2012 |
| Founder | |
| Headquarters | Milpitas, California, U.S.A. |
| Services | Earned wage access |
Number of employees | 200 (2020) |
| Website | Official 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]
Payactiv offers a suite of financial wellness products and services, including a digital wallet, Visa debit card, and 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]
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]
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]