Withdraws from its CFPB approval order to facilitate change
SAN JOSE, CA., June 30, 2022 /PRNewswire/ — Today, Payactiv, Inc.., a certified B Corp and the leader in Access to Earned Wages (EWA), announced the removal of E.W.A. access fees, making several of Payactiv’s delivery options, including ACH, completely free.
Payactiv previously waived its fees in 2020 at the start of the global COVID-19 pandemic, and now, by eliminating access fees entirely, the company is creating another watershed moment and making E.W.A. even more accessible for the millions of American workers in need relief in the current economic climate.
“Fast access to earned wages is the surest way for millions of American workers to meet their living needs without fees or penalties from other liquidity options. With zero additional cost E.W.A. options, the bar has again been raised for E.W.A. industry.” said the co-founder and CEO Safwan Shah. “To quickly offer these additional options at no cost, we have elected to opt out of the company-specific 2020 CFPB Approval Order,” Shah added.
Although the withdrawal does not affect Payactiv’s offerings, it allows the company to eliminate access fees without delay. Payactiv has worked cooperatively with the CFPB over the past few years, including responding to CFPB feedback in early 2021 to state that it “has a CFPB approval order” instead of describing itself as “approved by the CFPB.” CFPB”. Payactiv appreciates the opportunity to have worked with the CFPB on the Approval Order, and looks forward to further efforts to move the industry forward.
Payactiv is the creator of E.W.A. and a leading supplier in the industry today. By announcing yet another free access route to its E.W.A., Payactiv continues to disrupt the industry it created, establishing a new level of service for those who rely on Earned Wage Access to navigate their financial lives. In addition to E.W.A., it offers gas and prescription discounts, savings options, and powerful budgeting tools. Consumers will also continue to have access to optional expedited delivery methods for a voluntary fee, as needed.
Payactiv will make the improved fee structure available to all new and existing customers in the third quarter of 2022 and expects most employers to switch to the new model by 2022.
Payactiv, a public benefit and certified B Corp, provides workers with on-demand access to earned but unpaid wages. This approach eliminates the expense of payday loans, bank overdrafts and late fees that workers would otherwise resort to for cash. The Company’s holistic financial wellness platform offers a suite of financial services that includes savings and budgeting tools, bill paying and measuring financial health. Payactiv is the winner of the American Business Awards Company of the Year for Financial Services, the Innovative Payments Association’s Consumer Champion Award, Finovate Winner and Finalist, and the recipient of numerous top-notch FinTech and HRTech awards. Visit www.payactiv.com.