Payactiv partners with companies to provide employees with financial services such as earned wage access.
[5] Earned wage access is viewed as a responsible alternative to payday lending, as the service is offered without recourse, credit impacts, interest, or late fees.
[14] Payactiv partnered with OnShift in March 2020 to provide early wage access to workers in healthcare and rehabilitation facilities during the COVID-19 pandemic.
[16] In December 2020, the Consumer Financial Protection Bureau (CFPB) granted Payactiv sandbox approval to provide EWA.
The CFPB ruled that Payactiv was not a traditional lender since its EWA program did not create debt, and as such was exempt from the Truth in Lending Act.