Paychex Brings Earned Wage Access to New Benefits Marketplace

Human Capital Management Software Company Paychex launched a benefits marketplace for employees.

Paychex Flex Benefits, announcement On Wednesday (August 21), products are being offered including early access to earned wages, financial wellness solutions and voluntary lifestyle benefits for employees of Paychex clients.

The marketplace is integrated directly into Paychex Flex, the company’s cloud-based software-as-a-service (SaaS) solution, allowing employees to self-select benefits based on their needs, giving business owners and HR managers more time to focus on “more strategic initiatives that come with running a business,” Paychex said.

“Based on our ongoing monitoring of workplace challenges and customer needs, we see firsthand that many companies are struggling to attract talent in today’s job market due to the lack of employee benefits beyond traditional healthcare,” said Tom HammondVice President of Strategy, Partnerships and Business Development at Paychex.

“Paychex is well positioned to create a unique marketplace and personalized experience for employees of “We offer our customers attractive optional benefits.”

The company’s Earned Wage Access (EWA) offering is rolling out as the Consumer Financial Protection Bureau (CFPB) prepares to classify such products as consumer loans.

A report published with Consumer Civil Protection Office (CPFC) The announcement of the rules showed that for employer-partnered companies, the average transaction size ranged from $35 to $200, with an overall average transaction size of $106, and the average worker accessing $3,000 in funds each year.

Meanwhile, data from PYMNTS Intelligence showed that 83% of workers People aged 18 to 44 believe they should have access to a salary at the end of each day.

“Interest in early access is driven by the fact that the majority of consumers — more than 60% — live paycheck to paycheck, according to a PYMNTS study,” PYMNTS wrote. “Surveys show that 56% of those with access to earned pay said they used it.”

And up to three-quarters of millennials said the availability of EWA would impact whether they accepted a job offer. Additionally, 96% of companies that offered EWA said their employees valued it and that it helped them attract talent.

Meanwhile, PYMNTS spoke last month with Jill CapicchioniPayments Product Manager at NCR Voicexwho stated that the EWA emerged in “overwhelming” fashion as a use case in FedNow® Service instant payment systems and The Clearing House’s RTP® Network.

“I don’t think we, or anyone else, really anticipated this as a main use case,” she said during a discussion on the first anniversary of the FedNow service.

Although These transactions have an impact on consumers, “I don’t think consumers are Really “We recognize, particularly with earned wage access, that what’s driving this technology is the FedNow network.”