OnShift has a new card in its wallet.
The Cleveland-based workforce management software company said on Tuesday it was adding a prepaid Visa card option to Wallet, the application powered by PayActiv that it launched in 2017 to help elderly care workers access earned but unpaid wages.
The move aims to give those employees a way to access some of their money before payday without needing a bank account, according to Mark Woodka, CEO of OnShift.
Many large employers with hourly workers, including retail giants like Walmart, have adopted new ways in recent years to allow their workers to access their wages without having to wait for the end of a pay period. In the elderly care sector, these apps may offer providers a new tool to compete with retailers and other employers as they seek to attract and retain frontline workers, many of whom are paid on the job. time.
“Many of our clients’ employees live paycheck to paycheque and cannot afford the monthly account maintenance fees for bank accounts and checks. For many reasons, some do not have a bank account, ”Woodka told Senior Housing News. “The Visa OnShift Wallet Prepaid Card offers a no-cost way to help unbanked employees get banked. “
The new card option allows employees to make purchases anywhere Visa is accepted. Employees must use Wallet to add money to their Visa card and will be charged a fee of $ 5 per pay period with up to three transactions available. However, once they have loaded the funds to their card, there are no monthly maintenance fees or fees to withdraw money from any of the approximately 32,000 MoneyPass ATMs in the United States. .
“Prior to this new improvement, employees accessed their money through the OnShift Wallet app through a [automated clearing house] transfer. This would usually be delivered the next day, ”said Woodka. “This card allows for real-time transfer, eliminating delays. “
Nearly 1,000 senior housing communities use OnShift Wallet, with about 87% of users spending their earned but unpaid funds on bills, groceries, rent and unexpected expenses, according to data collected by the tech company. Almost three-quarters (73.5%) of OnShift Wallet users used the app to avoid late fees, bank overdrafts and payday loans, and just over a quarter (26%) of these users carry out at least one transaction per month.
While these types of services are often touted as ways to provide workers with more financial flexibility, they also illustrate the growing financial insecurity of the U.S. workforce. Just under half (44%) of all working Americans have less than $ 400 in savings in the bank, while just over half (55%) worry about paying their next unforeseen expenses, according to a 2016 employee financial well-being survey conducted by PricewaterhouseCoopers. (PwC).