MINNEAPOLIS–(BUSINESS WIRE)–February 16, 2022–
US Bank today announced a new solution with Payactiv to bring Earned Wage Access (EWA) to US Bank customers.
Employees of organizations that use prepaid US bank concentration card for payroll installments can access a portion of their earned wages on demand through immediate direct deposit to their US Bank Focus card. The collaboration includes other payment options, including an 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.
With more than 90 percent of employees – according to a 2019 study – interested in working for a company that offers EWA, offering employees pay-as-you-go is a significant benefit for employers that can both increase job demands and reduce employee turnover while helping to improve the lives of their employees. US Bank is one of the first major financial institutions to partner with an EWA provider to offer an EWA payroll card solution to employers and employees.
“The future of payments is where businesses may soon say goodbye to traditional bi-weekly payroll,” said Shailesh Kotwal, vice president, US Bank Payment Services. “Employers recognize that providing employees with on-demand access to earned wages improves employee satisfaction and recruitment efforts. We pride ourselves on being at the forefront, developing a solution that helps our corporate clients offer additional convenient payroll options for their employees.
“Payactiv invented Earned Wage Access to free the American worker from the two-week payroll cycle,” said Safwan Shah, CEO of Payactiv. “We provide quick access to cash – so a single mother can pay for daycare between paychecks and a healthcare worker can cover an unexpected car expense. American companies succeed when their employees feel in control and can thrive. US Bank is at the forefront of innovation and puts people first.
The RTP EWA disbursement option created by US Bank avoids up to two business days of delay compared to a traditional ACH transfer. The US Bank Focus Card payroll deposit option is also virtually instantaneous.
US Bank is leading the way in enabling consumers and businesses to send and receive real-time payments (RTP) instantly 24 hours a day, 365 days a year via the RTP® network. The first new payment rail in the United States in over 40 years, the RTP® network was launched in 2017 when US Bank participated in the first-ever payment on the network. US Bank is now one of the main senders of RTP in the United States. The bank is continually developing new ways for businesses and consumers to use RTPs, as a new Payment Solution Request for billers.
About US Bank
US Bancorp, with nearly 70,000 employees and $573 billion in assets as of December 31, 2021, is the parent company of the US Bank National Association. The Minneapolis-based company serves millions of customers locally, nationally and globally through a diverse array of businesses: personal and business banking; payment services; Business and corporate banking services; and wealth management and investment services. The company has been recognized for its approach to digital innovation, social responsibility and customer service, including being named one of the 2021 World’s Most Ethical Companies and Fortune’s Most Admired Superregional Bank. Learn more about usbank.com/about.
Payactiv, a public benefit and certified B Corp, is a holistic financial wellness platform that provides employees with on-demand access to earned but unpaid wages. Businesses that partner with Payactiv see significant cost reductions through increased recruitment, engagement and retention. Employees love Payactiv because it eliminates costly fees between payday loan paychecks, bank overdrafts, and late fees. Payactiv offers a suite of financial services that includes savings and budgeting tools, bill payment, and financial health measurement. Payactiv is the winner of the American Business Awards Company of the Year Award for Financial Services, the Innovative Payments Association’s Consumer Champion Award, a Finovate Winner and Finalist, and the recipient of numerous premier awards. in the FinTech and HRTech fields. Visit www.payactiv.com.
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CONTACT: Todd Deutsch, US Bank Public Affairs and Communications
KEYWORD: UNITED STATES NORTH AMERICA MINNESOTA
INDUSTRY KEYWORD: PROFESSIONAL SERVICES DATA MANAGEMENT TECHNOLOGY FINANCE SOFTWARE BANKING
SOURCE: US Bank
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PUBLISHED: 02/16/2022 09:00/DISC: 02/16/2022 09:02