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Source: US Bank
U.S. Bank today announced a new solution with Payactiv to bring Earned Wage Access (EWA) to U.S. Bank clients.
Employees at organizations 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 U.S. Bank Focus Card. The collaboration includes other payment options including 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.
With more than 90 percent of employees – according to a 2019 study – interested in working for a company that offers EWA, providing employees on-demand pay is an important benefit for employers that can both increase job applicants and reduce employee turnover while helping to improve the lives of their employees. U.S. Bank is one of the first major financial institutions 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,” said Shailesh Kotwal, vice chair, U.S. Bank Payment Services. “Employers recognize that providing employees on-demand access to earned wages improves employee satisfaction and recruiting efforts. We’re proud to be on the leading edge, developing a solution that helps our business clients provide additional convenient options for their employee payroll.”
“Payactiv invented Earned Wage Access to free the American worker from the two-week pay cycle,” said Payactiv CEO Safwan Shah. “We provide timely access to liquidity – so a single mother can pay for daycare between paychecks and a healthcare worker can cover an unexpected car expense. American businesses succeed when their employees feel in control and can thrive. U.S. Bank leads with innovation and putting people first.”
The RTP EWA disbursement option created by U.S. Bank avoids up to two business days of delay from a traditional ACH transfer. The U.S. Bank Focus Card payroll deposit option is also virtually instantaneous.
Financial Services
