PayActiv Review – An Earned-Wage Access Solution
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PayActiv lets employees access up to 50% of their earned wages immediately. You can access more of the money you deserve before payday.
9/10
Cost
8/10
Ease of Use
9.5/10
Features
9.5/10
Services
8/10
Payday is fun for many workers because they receive a week’s wages. However, payday doesn’t always come soon enough for employees who live paycheck to paycheck and get hit with emergency expenses. Overdraft fees can add up, and some people may get lured by predatory payday loans to cover short-term expenses. This cycle can feel endless and ruin people’s retirement plans.
PayActiv is a better way to access your wages when you work the hours. You don’t have to wait until the next payday to access the money you earned. PayActiv lets employees access up to 50% of their earned wages immediately. You can access more of the money you deserve before payday. This approach allows more workers to break out of the cycle and stop relying on payday loans or incurring overdraft fees during emergencies. Our Payactiv review will give you an insight into how it works.
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What is PayActiv?
PayActiv is an earned-wage access app that over two million employees use to get paid sooner. Over 1,500 businesses use PayActiv to give employees another reason to stick around. For good reasons, some top companies that use PayActiv include Alorica, Uber, Subway, Hilton, and Perdue. Earned-wage access (EWA) solutions have helped companies retain more employees, reduce absent days from staff, and increase productivity. Earned-wage access solutions help employers just as much as they help employees.
PayActiv has been a top choice in the earned-wage access industry since Safwan Shah, Sohail Aslam, and Ijaz Anwar founded the company in 2012. The San Jose, California-based company employs over 200 people.
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How does PayActiv work?
PayActiv operates in the background for thousands of corporate enterprises and small businesses. The EWA solution has partnered with leading HCMs to integrate seamlessly with your favorite payroll systems. Employees can pick up cash at a local Walmart, receive funds in their bank account, or load their wages onto a PayActiv Visa debit card.
PayActiv mentions on its website that 9 out of 10 employees want earned wage access, and it’s easy to see why. Employees can get discouraged and lose a lot of money between loans and overdraft fees if their wages today do not show up in their bank accounts for over a week.
Employees can sign up for PayActiv by clicking the “Get Started” button on the website. PayActiv will ask for their phone number and send a text verification message. After verifying their phone number, they will have to enter their name, email, password, and employee ID.
Your company has to provide an employee ID that you can use to receive the payment. Employees can add bank accounts and other payment methods and choose where to send the funds. If you work for a company where the employer does not use PayActiv, you must convince your employer that the cash advance app can be mutually beneficial. PayActiv has several data points on its website. You can mention that many employees want to earn wage access and that it can improve retention and productivity. Mentioning how PayActiv helps employers can make them more inclined to try the EWA solution.
How much does PayActiv cost?
PayActiv is an affordable way to access your wages sooner, and some people end up paying no fees. Here are the money transfers that qualify for no fees:
- ACH bank transfers
- Real-time direct deposits to a PayActiv Visa Debit Card
- Bill Pay
- Qualifying expenses
PayActiv users will incur a $1.99 fee for real-time transfers to a PayActiv Visa Card without direct deposit. The EWA sets a $3.49 pricing for Walmart Cash Pickup and real-time transfers to non-PayActiv debit or payroll cards.
If you make ACH transfers to your bank account and can wait 1-3 business days to receive your wages, your PayActiv account will be free to use. Keeping track of expenses and due dates can help you use fee-free ACH transfers instead of relying on a real-time transfer that can result in a fee. I use a spreadsheet to track expenses and look at credit card deadlines to stay on top of everything.
Raise Your Credit 80 points*
- 5 star service trusted by over 450,000 members
- Have processed over $11,000,000 in bill payments for members
- No deposit, no credit check, no interest
- New member promotions available
*Potential increase based on StellarFi member data. StellarFi numbers observed an average of 80 points VantageScore® 3.0 increase during a member’s lifetime. Score increase based on members with an incoming score range of 300-499 pts, who made regular on-time payments, with regular on-time payments. Results may vary.
PayActiv features
Goal-based savings
PayActiv, Inc. lets employees allocate a portion of their paychecks to goal-based savings. You can set money aside for a vacation, car, or other worthwhile goal. Consumers can designate a PayActiv Visa Card, bank account, or debit card for the goal funds.
Discounts
PayActiv has partnered with several businesses to offer enticing discounts to PayActiv Visa card holders. The PayActiv app allows you to find exclusive discounts.
Financial coaching
Talking to a certified credit counselor about your finances can move you in the right direction. Whether you want a smoother retirement or extra money in your savings account, a coach can take you far. PayActiv partners with Knowledge of Financial Education (KOFE) to connect consumers with certified credit counselors. KOFE is a Consolidated Credit Solutions segment with over three decades of experience.
KOFE pairs you with a HUD-approved counselor who can help at any stage of your financial journey. Some people contact KOFE counselors about buying a first home and budgeting, while others inquire about reverse mortgages and building credit. You will not get charged a fee if you use future wages to cover financial coaching services through KOFE and PayActiv’s partnership.
Bill pay
PayActiv makes it easy to pay all of your bills from one dashboard. You won’t have to worry about small expenses falling through the cracks if you use Bill Pay. The feature lets you group your bills and ensure they get paid automatically. PayActiv’s SmartSave works hand-in-hand with Bill Pay to simplify bills and provide suggestions on allocating cash from your payday.
Pay a friend
The Pay a Friend feature lets you quickly pay friends for any reason. Whether you want to split a bill, give a gift, or pay for rent, Pay a Friend has you covered with real-time transfers. The sign-up process is simple and takes less than five minutes. You can only send money to a friend if they have a PayActiv Visa Card.
Who is PayActiv best for?
Employees living paycheck to paycheck
PayActiv thrives as a resource for employees seeking earlier access to wages and other personal finance tools. PayActiv is more than an EWA solution and lets you access up to $200 in advance every payday. Since PayActiv is not a loan, you do not have to worry about hard credit checks or interest rates.
On-demand payments can reduce overdraft fees and give employees a viable alternative to payday loans. PayActiv can provide employees with greater peace of mind when emergency expenses arise.
Employers seeking higher performance
Earned wage access is a popular perk many employees want to offer. Companies that enabled EWA for their workers have increased productivity and retained more workers.
Employers must give employees as many reasons as possible to stick around, especially top talents who can go elsewhere. Constant turnover can put your company at a disadvantage and hurt morale. There’s more to high performance at a company than earned wage access, but it helps.
Who shouldn’t use PayActiv?
Consumers who are prone to overspending
PayActiv is at its best when it saves you from a financial emergency, but it can hurt someone who overspends their money. When you request $200 in early wages, that amount gets deducted from your next paycheck. If you make $1,000 and request $200 in advance, you only receive $800 from the following paycheck. Consumers who spend on unnecessary purchases will have less money to cover emergencies. If you are not careful, EWA can further enable overspending and make retirement goals more difficult while adding to financial stress.
Employees with financial buffers
PayActiv has several fee-free transfers, but why deal with any fees or another software? PayActiv makes sense for people needing early access to some of their wages, but it’s unnecessary if you have a sizable emergency savings account.
Raise Your Credit 80 points*
- 5 star service trusted by over 450,000 members
- Have processed over $11,000,000 in bill payments for members
- No deposit, no credit check, no interest
- New member promotions available
*Potential increase based on StellarFi member data. StellarFi numbers observed an average of 80 points VantageScore® 3.0 increase during a member’s lifetime. Score increase based on members with an incoming score range of 300-499 pts, who made regular on-time payments, with regular on-time payments. Results may vary.
Pros and cons
Pros
- Get earlier access to your paycheck so unexpected expenses don’t result in overdraft fees or payday loans.
- Easily send money to friends if they also have a PayActiv Visa card.
- Employers can increase employee retention rates and productivity by using PayActiv.
- Allocate some of each paycheck to a goal-based savings account.
- Pay off all of your bills automatically from one dashboard.
Cons
- You can only access up to $200 in advance every payday. If you need $1,000 to cover an emergency expense right now, you are out of luck with PayActiv.
- Fees apply for some types of transfers.
- Earned wage access solutions like PayActiv can stimulate overspending.
PayActiv vs. competitors
PayActiv has been delivering earned-wage access solutions for almost 12 years. Since becoming one of the pioneers in the industry, other companies have offered similar solutions. Here’s how PayActiv is fair against the competition.
EWA Company | Maximum Cash Advance | Employer Approval Required | Fees |
|---|---|---|---|
PayActiv | 50% of earned wages or $200 per pay period | Yes | No fee for direct deposits. $1.99-$3.49 for some transfers |
DailyPay | 100% of earned wages | Yes | $1.99 for a transfer in one business day or $3.99 for an instant transfer |
OrbisPay | 50% of earned wages or $500 per pay period | Yes | $1 fee for ACH transfers or $2.95 for instant transactions |
DailyPay
DailyPay is an earned wage access company that lets employees receive up to 100% of their paycheck before payday. Founded in 2015, the company charges a small fee for every transfer.
OrbisPay
OrbisPay lets employees receive 50% of their earned wages or $500 every payday, depending on which number is lower. Mo Saeed founded the company in 2019. OrbisPay’s headquarters are located in New York City.
FAQs
Does PayActiv charge a fee?
PayActiv charges a small fee for some types of money transfers. Direct deposits to a PayActiv card and ACH bank transfers are some of the activities that do not result in a fee.
How many times can you withdraw wages from PayActiv?
You can make up to three money transfers in a pay period.
How much money can you access with PayActiv?
PayActiv users can obtain 50% of their earned wages or $200 per pay period, depending on which is lower.
Is PayActiv free?
If you use qualifying types of transfers that let you evade fees, you can use PayActiv without paying any money.
Is earned wage access a loan?
Earned wage access is not a loan since you have already earned the wages. EWA solutions let you receive funds sooner.
Does PayActiv run a credit check?
PayActiv does not give out loans. Therefore, the company does not run credit checks on employees. Obtaining your wages earlier with PayActiv will not impact your credit score.
What are the benefits of PayActiv?
PayActiv empowers employees so they can access earned wages sooner. This helps workers keep up with everyday expenses and avoid payday loans and overdraft fees. Employers tend to see increased productivity and higher retention rates because of PayActiv and other EWA solutions.
The bottom line
More employees want earned wage access solutions as an alternative to waiting for the next payday. EWA creates a win-win environment for employees who want more financial stability and employers who want to keep their top workers and increase productivity. It is a way of ensuring the financial wellness of the employees. PayActiv is one of the leaders in the earned wage access industry and has over a decade of experience.
PayActiv can be a great resource for people living paycheck to paycheck, but you shouldn’t rely on it. Earned wage access solutions can lead to overspending, so it’s best to use PayActiv when needed for an emergency expense. Keeping your monthly bills and due dates can help you stay on top of your finances and minimize fees. You can avoid fees if you make certain money transfers when accessing your earned wages. Most earned-wage access apps do not offer that option, helping PayActiv stand out.
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Writer
Marc Guberti is a business freelance writer who specializes in personal finance, digital marketing, and entrepreneurship. His award-winning book "Content Marketing Secrets" teaches readers how to create, promote and optimize content for growth and revenue. Marc also hosts the "Breakthrough Success Podcast," where listeners learn how to master content marketing and get more clients.
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