SAN JOSE, Calif .– (BUSINESS WIRE) – After a successful 2015, PayActiv announced that it has secured $ 9.2 million in funding from investors since the company was started by a seed fund affiliated with SoftBank Capital. Funding will help expand PayActiv’s suite of turnkey services financial wellness offers.
Founded by Safwan Shah, a payments industry veteran, PayActiv is a B Corp certified company. with the mission of providing viable alternatives to conventional low dollar and expensive loan products that lead individuals into a downward spiral of debt.
“PayActiv’s business model addresses the root cause of the debt spiral among millions of workers around 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 member of the board of directors of PayActiv.
In one investigation
conducted by Bankrate, 63% of Americans said they couldn’t cover an unexpected $ 500 expense without borrowing or selling something, while more than $ 100 billion is earned each week but remains stranded in transit, waiting on payday. Unlike PayActiv, alternative financial services – payday loans, securities lending, and check-cashing points – all come with additional fees and debts.
PayActiv has redefined financial well-being with its cloud-based MyMoNow solution, which reduces the time lag between earning income and allocating it to daily necessities. MyMoNow is unique in the financial wellness market in that it is offered by employers as a membership program, giving employees quick, secure and convenient access to small amounts, as well as tools free of bill payment, bank transfer, budgeting and savings. Employees can instantly access earned – but for now, unpaid – income of up to $ 500 to meet their immediate needs without worrying about late fees, overdraft fees, or additional debt.
“Anyone 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 retail at Harvard Business School. “Technology is our best hope for improving the lives of the unbanked.”
Employees enroll in the PayActiv program as they would any other benefit offered by their employer, and when an employer offers MyMoNow as part of their benefit package, all employees are automatically eligible – no verification of credit and no denial. Typically, an employer can activate the MyMoNow solution within one to two days.
Employers who offer MyMoNow incur no risk, no personal expense, and no disruption to cash flow or business processes. Instead, they reap 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 lost productivity, increased absenteeism, accidents and turnover, not to mention skyrocketing workers’ compensation, medical, legal and insurance costs.
“PayActiv’s product is a seamless turnkey solution that requires no changes to our business processes and is a real 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 improve our innovative financial wellness programs that help all workers lead safe and better lives. , dignity and savings, ”said Safwan Shah, CEO. and founder of PayActiv. “Living on debt is living a borrowed dream, and with PayActiv, employers help their employees achieve their dreams, take control of their personal finances and avoid debt.”
Based in Silicon Valley, PayActiv is a fintech company that offers a full suite of turnkey, employment-focused financial wellness offerings. As B Corp. Certified, the company’s mission is to empower workers of all income levels to lead better lives with safety, dignity and savings. The company achieves this through its MyMoNow solution, which provides employees with fast, secure and convenient access to their earned but unpaid salaries for a nominal fixed transaction fee, resulting in zero added debt. For more information visit www.payactiv.com.