Startup Immediate Accelerates Access to Earnings Earned Through Visa Push Payments | Payments Source
Immediate will use Visa Direct to provide real-time access to employees to collect wages earned but not yet paid by the scheduled payday.
The Birmingham, Alabama-based startup offers a cheaper alternative to payday loans. According to PEW Charitable Trusts, 12 million Americans borrow from payday lenders each year and spend more than $ 7 billion on payday loans. Immediate work through employers, integrating with a company’s time and payroll tracking software to determine the wages an employee has accrued during a payroll cycle. Immediate has built integrations with ADP, Kronos, Paychex, Paylocity, UltiPro, Prism HR, as well as other payroll platforms.
While many EWA providers such as PayActive Set a limit, such as $ 500, on how much an employee can access early, Immediate works with each employer to set custom limits.
The employee can access and request wages using the company’s mobile app called ImmediatePay. Any qualifying Visa card can be linked to the ImmediatePay app and requests can be made at any time of the day, including weekends and holidays. The cost of accessing real-time salaries is normally paid by the employee and goes up to a maximum of $ 3 per transaction, similar to an ATM fee. However, the costs can be partially or fully offset by an employer if he chooses to do so.
“Workers who request early access to their earned wages often need the money quickly, especially if it is a health emergency, car repair or other unforeseen expense,” said Matt Pierce, co-founder and CEO of Immediate, in a press release.
Immediate was founded in October 2018, then won a $ 100,000 prize in the Alabama Launchpad pitch competition in 2019 and completed a fundraising round in February. Investors in the seed round included the Alabama Capital Network and several angel investors from Boston, Atlanta and Birmingham.
Immediate approaches all industries, gaining traction in manufacturing, healthcare and retail, and has nearly 100 live customer locations. Clients include Gulf Coast Panama Jack (Florida), Heritage Senior Living (Wisconsin), Pack Health in Birmingham.
“Now more than ever, hourly workers want and need more flexible tools to help them better manage their money as the pandemic continues to strain the workforce,” said Cecilia Frew, vice -Senior president of Visa Direct, in the press release. “Visa is proud to work with Immediate to help individuals gain more control over when to access their funds, allowing them to recover the money they have already earned during this difficult time more quickly.”
Other companies providing access to earned wages include To win, DailyPay, Same and Plugged. Besides, Ceridian, a human capital management company that provides payroll software also entered the EWA market in May. The domain also extends to overseas markets which include recent launches or capital increases by UK companies salary and Orka Technology Group as well as Minu in Mexico and Xerpa in Brazil.
PayActiv was one of the first companies on the market and strengthened its profile through partnerships with Walmart and Even. PayActiv serves 500,000 Walmart employees out of an available pool of 1.5 million and has nearly one million active users across its entire customer portfolio. However, a notable new entrant, Square, took a different approach to linking accessible EWA funds by sending them to its App Cash, which has more than 30 million users.