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OnShift Inc., a provider of human-capital management software for caregivers, is dropping the fees for earned-wage access through its digital wallet. OnShift’s wallet runs on the Payactiv platform.
As part of the new arrangement, senior care workers using the OnShift wallet can access a portion of their earned wages outside traditional pay cycles through a variety of delivery channels, including the automated clearing house.
This is not the first time the two companies have waived fees for earned wage access. At the onset of the Covid-19 pandemic, OnShift and Payactiv agreed to temporarily drop fees to help caregivers weather what was an uncertain economy at the time. The latest move also follows a decision by Payactiv in July to scrap its access fees altogether.
“Earned-wage access is a crucial benefit for senior care where many employees live paycheck to paycheck,” Jim Rubadue, chief operating officer for OnShift, says in a prepared statement. “We’ve heard countless stories about how OnShift Wallet is helping caregivers in times of need. In partnership with Payactiv, we are proud to eliminate access fees to further support the senior-care workforce.”
Between Jan. 1 and Sept. 9, OnShift users accessed $54.7 million is earned wages. Advocates of the service argue providing access to earned wages outside normal pay cycles helps employees better manage their finances. A recent survey by OnShift reveals that 91% of users that access earned wages intend to spend the funds on bills, groceries, rent, and unexpected expenses.
In addition to eliminating the fees for earned-wage access, OnShift says it has enhanced its wallet to improve the user experience. Enhancements include SmartSave, a tool that enables users to set financial goals and automatically save a portion of their wages, free financial counseling, financial-literacy content, a peer-to-peer payments feature, and integration with Uber to book rides using wages. Other enhancements include expanded automatic bill payment services compatible with more than 75,000 billers and discount offers on movie tickets, gas, and other products.
“By partnering with OnShift to provide additional free ways for the senior-care workforce to access their earned wages, we’re doubling down on our mission to bring security, dignity, and savings to the millions of workers experiencing financial stress.” Payactive chief executive and founder Safwan Shah says in a prepared statement.
Earned-wage access allows workers to electronically tap their wages via an app before the designated payday and transfer the funds to a bank account or debit card. They can also receive cash at Walmart stores, according to Payactiv, an early provider of the service, which is also sometimes called an advance on wages. Payactiv reimburses itself via a deduction from the employee’s paycheck, earning a profit via fees. The company this summer said its move to drop access fees would take effect for all new and current clients in the third quarter. It expected most employers to adopt the new pricing approach by the end of the year.
