Founded by PayActiv, the secret to increase financial wellness is fintech solution called Real-time payroll. In this video PayActiv CEO Safwan Shah sheds light on the economic damage caused by the alternative financial services industry and how PayActiv’s Real-time payroll can help millions of people with their financial struggles.
In some ways, PayActiv is the perfect alternative to payday loans.
However, for 60+ million families living paycheck to paycheck, payday loans are just the tip of a titanic financial iceberg. There are over 60 million working families who do not have $400 in savings, to meet the emergencies in life. They are underbanked, unbanked and overcharged.
An estimated 90M workers in the US are living paycheck to paycheck and even a small financial shock can cause late fees, bank penalties and the need for very expensive payday advances. Clearly, waiting for payday is expensive. It is very expensive AND it hurts businesses as well as its workers.
Every week over $130 Billion is earned but remains unpaid because of inefficiencies of the current systems. Due to technological limitations, businesses pay employees either weekly, bi-weekly or monthly. Between paychecks, while waiting for pay, employees are incurring devastating costs and stress.
PayActiv has invented a fintech solution that eliminates the cost and stress, by giving employees access to a portion of their earned wages, at the time when they need it the most. This is how employees can successfully avoid the cost of waiting for payday.