2023 Impact Report Shows Payactiv EWA Cuts Reliance on Payday Loans
SAN JOSE, Calif., Sept. 27, 2023 /PRNewswire/ -- Payactiv, the leading provider of employer-integrated holistic financial wellness benefits, has released its 2023 Impact Report. The report reveals how employer-sponsored Earned Wage Access (EWA) helps U.S. workers avoid financial hardships and increase job satisfaction.
Key Insights:
- 74% of respondents said without timely access to earned wages, their households would be negatively impacted
- 75% said timely access helped them cope with rising costs
- 71% reported improved budgeting due to timely access to earned wages
- EWA is primarily used for:
- Food (71%)
- Transportation (64%)
- Utilities (58%)
Impact on Loans and Overdrafts:
- Before employer-sponsored EWA: 30% relied on high-interest payday loans and 33% were hit by overdrafts.
- After employer-sponsored EWA: Payday loans and overdraft use plummeted by 70% and 69%, respectively among the respondents
The data confirms that timely access to earned wages helps avoid dangerous debt traps.
One user commented, "without access to Payactiv, I would struggle to eat and commute to work, potentially risking my job."
"Timely access to funds when you need them the most is an antidote to predatory products. Our 2023 Impact Report proves that EWA reduces the need for high-interest loans and provides safer access to money," said Safwan Shah, CEO and co-founder of Payactiv.
Increased Job Satisfaction: A Win for Employers
The report indicates a strong link between EWA, employee satisfaction, and higher retention rates, making it an attractive benefit.
- Five out of 10 respondents rated Payactiv as an "extremely important" benefit
- Seven out of 10 reported improved satisfaction with their employer
- 56% of users in gig jobs prefer working for employers offering Payactiv
EWA Is a Life Saver
"...every employer should offer this service to their employees, this service is a life saver," said one respondent.
The benefits go beyond individual relief. Happier employees mean an engaged, and a productive workforce, marked by reduced stress and absenteeism. This improves recruitment, retention, and enhances the company's bottom-line performance.
"Businesses looking to boost their employer brand should prioritize offering EWA. It's good for the employees, good for business and good for the society," added Shah. "The tangible impact of EWA on individual lives leaves us inspired and we have never been more hopeful about the future as we see more businesses starting to invest in building a more equitable future for all."
Businesses have everything to gain by prioritizing EWA and true financial wellness. Shielding their workforce from financial vulnerability isn't just a benefit, it's a testament to their commitment to creating a resilient and empowered future.
To read the 2023 Payactiv Impact Report, click here.
Research Methodology
Payactiv partnered with 60 Decibels to conduct an online survey of its over 1,000 users. Users were randomly selected, are hourly workers, and work at enterprise and small and medium size businesses.
About Payactiv
Payactiv is an award-winning Certified B Corporation and the leading provider of Earned Wage Access. Payactiv offers a suite of financial wellness services designed to empower people to participate in the economy they helped create. Our platform and digital wallet serve over 4,000 businesses and level the playing field for millions of workers who struggle with cashflow between paychecks.
Payactiv is the winner of the "Best Innovative or Emerging Tech Solution" at the 2022 HR Tech Awards, a Silver Stevie® Award for our "All-in-One Digital Wallet and Livelihood Platform" and "Best Wellness Program" award at the California Excellence HR Awards.
SOURCE Payactiv
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