US Bank and Payactiv Launch Earned Wage Access Solution
US Bank has partnered with fintech Payactiv to offer its customers access to earned wages (EWA).
Employees of organizations that use the US Bank Focus Prepaid Card for payroll disbursements can access a portion of their earned pay on demand through immediate direct deposit to their Focus card.
The collaboration includes other payment options such as instant deposit to an employee’s checking account via real-time payments (RTP).
The solution will also provide access to other financial wellness services, including savings and bill management tools, US Bank said.
He adds that it is one of the first major financial institutions in the United States to work with an EWA provider to offer an EWA payroll card solution to employers and employees.
“The future of payments is one where businesses may soon be saying goodbye to traditional bi-weekly payroll,” said Shailesh Kotwal, vice president, US Bank Payment Services.
“Payactiv invented EWA to free the American worker from the two-week payroll cycle,” says Safwan Shah, CEO of Payactiv.
“We provide quick access to cash – so a single mother can pay for childcare between paychecks and a healthcare worker can cover an unexpected car expense. »
The RTP EWA disbursement option created by US Bank avoids up to two business days of delay compared to a traditional Automated Clearing House (ACH) transfer.
Payactiv was founded in 2012 and is based in California. It is a public benefit company and certified B Corp.