Payactiv

Payactiv, Inc.
Company type
Private
Industry
Founded2012; 14 years ago (2012)
Founder
HeadquartersMilpitas, California, U.S.A.
ServicesEarned Wage Access
Number of employees
200 (2020)
WebsiteOfficial website

Payactiv, Inc. is a financial services company headquartered in Milpitas, California. Payactiv offers Earned Wage Access (EWA) and a financial wellness platform to employees of participating employers and payroll providers.[1]

Payactiv is the first-ever Earned Wage Access provider, offering the service as of its founding in 2012.[2]

Products and Services

Payactiv offers a suite of financial wellness products and services, including a digital wallet, Visa debit card, and Earned Wage Access.

Earned Wage Access

Payactiv integrates with payroll providers, such as such as ADP, Paychex, Paycor, and UKG, to provide early access to earned wages, known as earned wage access (EWA). Also referred to as on-demand pay, EWA allows employees to access wages they have already earned before a scheduled payday.[3]

Using their payroll app or the Payactiv mobile app, users can access a portion of their paycheck early, with instant or near-instant options available to all users. Some employers offer this service as an employee benefit with subsidized fees. For others, users have several free disbursement options, and several low-cost options for faster payments or to use different types of financial accounts to receive the payment.[4]

Digital Wallet

The Payactiv digital wallet is a fee-free checking account alternative including options for direct deposit, a Visa debit card, automated goal-based savings, online bill payment, and other common online banking features.[5]

Business services

Payactiv consumer products are primarily available through employer payroll integrations. In addition to EWA and a digital wallet, Payactiv offers services including payroll cards, tips and mileage reimbursement payouts, and early termination payroll processing.

History

2010s

Payactiv was founded in 2012 by Safwan Shah, Sohail Aslam, and Ijaz Anwar.[6] The company was renamed to Payactiv, Inc. after a short initial period using the name PayKloud, Inc.[7]

In 2013, the Payactiv worked with Jersey Precast Construction to become the first employer to offer Earned Wage Access. In 2014, the company received a $4.3 million funding round, led by Japanese investment firm SoftBank Group.[7][8]

In November 2015, Payactiv became a Certified B Corporation, a social and environmental certification for for-profit companies. In its certification, the B Corporation listing states that Payactiv bridges the timing gap between earning and spending, eliminates the stress of overdraft and predatory fees, and provides intelligent and pre-emptive cash-flow management.[9]

In 2016, Payactiv raised an additional $9.2 million from undisclosed investors in a Series A investment.[10]

In 2017, Walmart partnered with Payactiv to offer Earned Wage Access to its 1.4 million employees. As of 2019, an estimated 380,000 of Walmart's 1.4 million employees used the app regularly.[11]

In 2018, Payactiv received $20 million in Series B funding, led by investment firm Generation Partners.[12] That year, the company surpassed $1 billion in annual EWA transactions and 650,000 users.[13] Payactiv estimates its users saved approximately $120 million in fees and interest that would have been incurred had they not had access to EWA.[8]

In 2019, the company processed $2.5 billion in early wage payments.[14] That year, the company announced a partnership with Visa that would allow users to receive and spend paycheck advances through a prepaid Visa card.[15]

Also in 2019, Payactiv sponsored California Senate Bill 472, which would create a regulatory framework for earned wage access (EWA) providers in California.[16] The bill limited the transaction fees and the number of transactions that EWA programs could provide.[17]

2020s

In 2020, Payactiv partnered with OnShift to provide early wage access to workers in healthcare and rehabilitation facilities during the COVID-19 pandemic.[18] Payactiv waived EWA fees for 75 days at the start of the pandemic.[8]

In August, 2020 Payactiv raised $100 million in Series C funding, led by Eldridge Industries.[19] The company was awarded the Excellence in Sustainability award for 2020 by Finovate[20] and the Consumer Champion Award from the Innovative Payments Association.[8]

In December 2020, the Consumer Financial Protection Bureau (CFPB) granted Payactiv sandbox approval to provide EWA. The CFPB ruled that Payactiv was not a traditional lender since its EWA program did not create debt, and as such was exempt from the Truth in Lending Act.[21]

As of 2021, the company had partnered with 1,500 employers, including Walmart, Wendy's, and Pizza Hut franchises.[22] At the 2021 American Business Awards, the company was awarded the Company of the Year - Financial Services and Corporate Social Responsibility Program of the Year.[23] It was named a Best for the World B Corp in the same year.[24]

In 2022, Payactiv transitioned to a new pricing model that eliminated several user fees, including those for ACH bank transfers,[25] following the mutual termination of its 2020 CFPB Approval Order.[26] The company received multiple accolades for its social impact that year, including a Gold Stevie Award for Corporate Social Responsibility[27] and an Anthem Award for its financial inclusion initiatives.[28] It was also recognized by Lighthouse Research & Advisory with an HR Tech Award for innovation in employee wellbeing and total rewards technology.[29]

References

  1. ^ "About Us". Payactiv. Retrieved 2025-12-30.
  2. ^ Malik, Aatif (2022-07-12). "What is Earned Wage Access?". Payactiv. Retrieved 2025-12-30.
  3. ^ Munk, Cheryl Winokur (2026-02-27). "A booming employee benefit at the heart of America's affordability debate". CNBC. Retrieved 2026-03-06.
  4. ^ "Program Pricing". Payactiv. Retrieved 2025-12-30.
  5. ^ "Get the Payactiv Visa® Card". Payactiv. Retrieved 2025-12-30.
  6. ^ "A Pakistani-American entrepreneur raised $100 million for his Fintech startup 'Payactiv.'". TechJuice. 2020-08-20. Retrieved 2021-04-07.
  7. ^ a b "SEC FORM D". sec.gov. Retrieved 2026-02-19.
  8. ^ a b c d "Our Story". Payactiv. Retrieved 2026-02-19.
  9. ^ "Payactiv - Certified B Corporation - B Lab Global". bcorporation.net. Retrieved 2026-02-19.
  10. ^ Shaw, Sam (2016-02-19). "$9.2m payday rolls around for PayActiv". Global Venturing. Retrieved 2026-02-19.
  11. ^ Tergesen, Anne (2019-09-02). "Some Companies Offer a New Benefit: Payroll Advances and Loans". The Wall Street Journal. ISSN 0099-9660. Retrieved 2021-04-07.
  12. ^ Slavens, Aaron T.; Barkus, David A.; O'Garrow, Allison G.; Buren, Bradley Van. "Holland & Knight Represents Generation Partners in $20 Million Investment in PayActiv". Holland & Knight. Retrieved 2026-02-19.
  13. ^ PayActiv. "PayActiv Crosses $1 Billion in Processed Funds for Timely Earned Wage Access to the Underserved and Underbanked Workforce". PR Newswire (Press release). Retrieved 2026-02-19.
  14. ^ Crossman, Penny (2020-03-20). "Consumers seek early access to wages to soften coronavirus hit". American Banker. Retrieved 2021-04-07.
  15. ^ Isidore, Chris (2019-03-09). "Visa and Payactiv are now providing quicker pay for those who need it most - CNN Business". CNN. Retrieved 2021-04-07.
  16. ^ "The derailment of California's payroll advance law". American Banker. 2019-09-20. Retrieved 2021-04-07.
  17. ^ Opfer, Chris (August 1, 2019). "'Early Wage' Apps Aim to Disrupt Payday Loans, Two-Week Cycle". Bloomberg Law. Retrieved 2021-04-07.
  18. ^ Vanac, Mary (March 3, 2021). "OnShift innovations enable workers access to wages before payday". Cleveland Business Journal. Retrieved 2021-04-07.
  19. ^ Shen, Lucinda (August 17, 2020). "SoftBank lends WeWork $1.1 billion". Fortune. Retrieved 2021-04-07.
  20. ^ Muhn (@julieschicktanz), Julie (2020-09-14). "Winners of the 2020 Finovate Awards Unveiled". Finovate. Retrieved 2026-03-06.
  21. ^ Crossman, Penny (2020-12-30). "Synchrony, Payactiv join CFPB's compliance sandbox". American Banker. Retrieved 2021-04-07.
  22. ^ "U.S. Hourly Workers Push to Get Paid Sooner". Bloomberg.com. 2020-04-01. Retrieved 2021-04-07.
  23. ^ Payactiv. "Payactiv Wins "Company of the Year" in Financial Services at the 2021 American Business Awards®". PR Newswire (Press release). Retrieved 2026-03-06.
  24. ^ Payactiv. "Payactiv Wins "Best For The World™" B Corp for Excellence Beyond Profit". PR Newswire (Press release). Retrieved 2026-03-06.
  25. ^ "Payactiv jettisons some fees in wake of CFPB move". paymentsdive.com. Retrieved 2026-05-15.
  26. ^ "CFPB Rescinds Special Regulatory Treatment for Payactiv". Consumer Financial Protection Bureau. 2022-06-30. Retrieved 2026-05-15.
  27. ^ "2025 Stevie Award Winners". tiny-jackal.cloudvent.net. Retrieved 2026-05-15.
  28. ^ "Entry". Anthem Awards. Retrieved 2026-05-15.
  29. ^ "HR Tech Awards 2022: Winners Announced – Lighthouse Research & Advisory". Retrieved 2026-05-15.

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