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CloudPay, a provider of employee payment solutions, is partnering with Visa Inc. to enable payroll to be deposited directly to employee debit or credit cards through Visa Direct, Visa Inc.’s real-time payment network The new service is expected to provide employees immediate access to their funds compared to the two to three days it takes for funds to become available after a direct payroll deposit to their checking account. Payments are being processed by Checkout.com, a London-based fintech.
In addition, CloudPay is offering CloudPay NOW, a mobile app connected to Visa Direct. Employees use the app to make fast pay-to-card payments from their earned wages prior to payday. Earned-wage access is a low-cost benefit that enables employers to address new employee expectations, specifically on-demand access to wages earned, CloudPay says.
The first company to offer CloudPay NOW, which launched in 2021, reported a 30% uptake by their employees after two months, according to CloudPay. The company, a global luxury retail brand, offers CloudPay NOW as an employee benefit to give on-demand access to wages that have already been earned, which in effect allows employees to choose their own payday, CloudPay says.
“Enabling solutions that help workers access their paychecks faster through earned wage access and payroll solutions is more vital than ever,” Nicky Alexander, head of Visa Direct Europe, says in a prepared statement. “This is why our partnership with CloudPay is so important. We are delighted Visa Direct is now supporting businesses in their efforts to enhance their payroll systems and enable on-demand payouts for their workers.”
In related news, indi, a Pittsburgh-based provider of digital-banking solutions, announced Tuesday the launch of Early Pay, an app that allows gig workers, independent contractors, freelancers, and self-employed individuals to receive payroll deposits directly through the app. The app, which is free, will allow all indi users access to their paychecks up to two days early.
Early Pay is made available to indi users based on automated clearing house instructions received from their payors. If indi receives information about a user’s direct deposit from the payor before the user’s scheduled payday, the funds are made available early.
“indi was built for anyone who earns 1099 income,” says Chris Yates, general manager for indi. “Helping the rapidly growing population of gig workers find work, make more money, and get paid faster is at the core of everything we do, and we’re excited to be able to offer our users faster access to the money they’ve earned.”
