U.S. Bank has joined forces with fintech Payactiv to bring earned wage access (EWA) to its clients.
Payactiv helps U.S. Bank bring EWA to its clients
Employees at organisations that use the prepaid U.S. Bank Focus Card for payroll disbursements can access a portion of their earned wages on-demand through an immediate direct deposit to their Focus Card.
The collaboration includes other payment options such as an instant deposit into 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, U.S. Bank says.
It adds that it’s one of the first major financial institutions in the US to collaborate with an EWA provider to bring an EWA payroll card solution to employers and employees.
“The future of payments is one where companies may soon say goodbye to the traditional, biweekly payroll,” says Shailesh Kotwal, vice chair, U.S. Bank Payment Services.
“Payactiv invented EWA to free the American worker from the two-week pay cycle,” states Payactiv CEO Safwan Shah.
“We provide timely access to liquidity – so a single mother can pay for day-care between paycheques and a healthcare worker can cover an unexpected car expense.”
The RTP EWA disbursement option created by U.S. Bank avoids up to two business days of delay from a traditional automated clearing house (ACH) transfer.
Payactiv was founded in 2012 and is based in California. It is a Public Benefit Corporation and Certified B Corp.
