PayPal reveals innovative new early wage payment service


Valentina Vitali
Valentina Vitali
FXC Intelligence Research Analyst
Valentina is a Research Analyst at FXC Intelligence, the data sister company of FXcompared. Valentina is passionate about payments and fintech. Valentin enjoys analysing money transfer companies and… Read more
  • PayPal has announced that it will pair up with Even Responsible Finance to deliver a new service designed to allow PayPal workers to access their earnings as they go, rather than just on payday.
  • The move came after a PayPal investigation found that many staff were suffering with problems related to low incomes.
  • The firm’s chief executive officer emphasised that the new arrangement was coming as part of a wider package to get the net disposable income of its workers to rise overall.

Major online money transfer provider PayPal has announced that it will permit its employees to get their wages early each month through the use of an innovative tech solution.

The firm said it had paired up with Even Responsible Finance to deliver the service.

The latter firm exists to challenge the dominance of so-called ‘payday lenders’, which work by offering high-interest loans to workers living paycheck to paycheck.

Now, PayPal’s workers can download the Even app to get hold of wages over the course of the month rather than at the current fortnightly intervals.

According to press reports, the move came about following the decision by PayPal to open up an urgent relief fund for its workers.

This fund, which aimed to offer help for unforeseen costs, found itself deluged by requests.

From there, bosses at PayPal decided to do some research into workers who are further down the hierarchy – including those who are employed on hourly contracts.

According to PayPal’s research, some of its employees were finding that they had less than 5% of their earnings once they had paid their costs of living and their taxation.

The relationship with Even will also help PayPal staff in another way.

It will allow them to access the Even app’s various other features, such as automatic saving.

In an interview with the financial news organisation Bloomberg, a senior figure at the company went into more detail about the problems that the staff faced.

Dan Schulman, who is the firm’s chief executive officer, said that some employees had been pushed into making hard decisions.

“They were financially stressed, they were being forced to choose between full health-care benefits and putting food on the table for their families,” he explained.

He went on to describe further steps that the company was taking to combat the problem of low income levels among its workforce.

“Over the past year, we’ve made significant investments to strengthen the financial health of our workforce,” he said.

He said that one of the metrics that the firm was using in this regard was “net disposable income” – something that it was trying to boost across the board.

“We’ve made substantial progress to increase the net disposable income of all our employees, and our work with Even will help drive further improvements,” he added.

PayPal is just one of many big names in the cross-border payments world – to discover more about what firms in this sector are offering, head to our reviews page.

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