PayActiv has entered into an agreement with Walmart to let member employees using the financial wellness app access earned funds from their paychecks at any of the retailer’s Walmart Money Center locations, according to a company announcement.
PayActiv, based in San Jose, California, announced an agreement in August that allowed Walmart employees the ability to access their earned wages. The rollout expands the service to hundreds of companies that use the PayActiv service, and a spokesman said that about 500,000 member employees are actively using the service.
Workers at member companies can request access using the PayActiv app and will be assigned a unique PIN code, which the user can then take to the Walmart service desk with a photo identification card. After approving the ID and confirming the approved wage access, Walmart issues the funds through its Direct2Cash payment platform.
The service allows workers to access earned wages up to $500, even before the company’s official payday, according to the spokesman. The service normally involves a $5 flat fee.
Company officials say the service allows millions of otherwise unbanked consumers to access funds without the need to take out expensive payday loans or an active bank account.
According to PayActiv, about 9 million consumers in the U.S. do not have bank accounts and about 30 percent of all transactions are still done using cash.