PayActiv Secures $9.2 Million in Financing to Innovate Financial Wellness Efforts That Reduce Financial Stress and Increase Productivity in the Workplace
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SAN JOSE, Calif.–(BUSINESS WIRE)–Following a successful 2015, PayActiv announced that it has secured $9.2
million in financing from investors since the company was seeded by an
early stage fund affiliated with SoftBank Capital. The funding will help
to grow PayActiv’s suite of turnkey, employment-based financial
wellness offerings.
Founded by Safwan Shah, a payments industry veteran, PayActiv is a
certified B Corp. with the mission to bring viable alternatives to
conventional small dollar and expensive lending products that lead
individuals into a downward spiral of indebtedness.
“PayActiv’s business model tackles the root cause of debt spiral among
millions of workers across the world, and it is one of the most exciting
innovations in the global FinTech space today,” said Kabir Misra,
Managing Partner of SoftBank Capital and PayActiv Board Member.
In a survey
conducted by Bankrate, 63 percent of Americans said they could not cover
an unexpected $500 expense without borrowing or selling something, while
more than $100 billion is earned every week but remains stuck in
transit, waiting for payday. Unlike PayActiv, Alternate Financial
Services – payday loans, title loans and check cashing outlets – all
lead to additional fees and debt.
PayActiv has redefined financial wellness through its cloud-based
MyMoNow solution, which reduces the time lag between earning income and
allocating it to daily necessities. MyMoNow is unique within the
financial wellness marketplace in that it is offered by employers as a
membership program, providing employees with rapid, secure and
convenient access to small dollar amounts, as well as free bill pay,
bank transfer, budgeting and savings tools. Employees can access earned
– but as of yet, unpaid – income up to $500 instantly to address
immediate needs without the fear of late fees, overdraft fees, or
additional debt.
“Anybody who cares about the working poor should be proud of PayActiv
for helping eliminate the billions of dollars in fees paid to payday
lenders and banks,” said Rajiv Lal, Stanley Roth, Senior Professor of
Marketing and Retailing at Harvard Business School. “Technology is our
best hope for improving the lives of the unbanked.”
Employees enroll in PayActiv’s program just as they would for any other
benefit offered by their employer, and when an employer offers MyMoNow
as part of its benefits package, all employees are automatically
eligible – no credit checks and no turndowns. Typically an employer can
go live with the MyMoNow solution within one to two days.
Employers offering MyMoNow incur no risk, no out-of-pocket expense and
no disruption to cash flow or business process. Instead they gain
quantifiable benefits from improved employee productivity, satisfaction
and retention. For example, according to The American Institute of
Stress, financial stress costs employers more than $300 billion a year
in the form of lost productivity, increased absenteeism, accidents and
turnover, not to mention skyrocketing worker compensation, medical,
legal and insurance costs.
“PayActiv’s product is a seamless, turnkey solution that does not
require any changes to our business processes and is a true win for us
and our employees,” said Kendall Johnson, CFO of Baton Rouge General
Hospital.”
“The growth PayActiv experienced in 2015 far exceeded my expectations,
and with this funding, we will continue to expand and enhance our
innovative financial wellness programs that help all workers lead a
better life with security, dignity and savings,” said Safwan Shah, CEO
and founder of PayActiv. “Living on debt is to live a borrowed dream,
and with PayActiv, employers help their employees own their dreams and
take control of their personal finances, and avoid debt.”
About PayActiv
Headquartered in Silicon Valley, PayActiv is a financial technology
company that offers a comprehensive suite of turnkey, employment-based
financial wellness offerings. As a certified B Corp., the company’s
mission is to enable workers of every income level lead a better life
with security, dignity and savings. The company achieves this through
its MyMoNow solution, which provides employees rapid, secure and
convenient access to their earned but unpaid wages for a nominal fixed
transaction fee – resulting in zero added debt. For more information,
visit www.payactiv.com.
Contacts
For PayActiv
Lauren Schuster, 678-781-7209
lauren@williammills.com
