(Bloomberg) -- U.S. hourly workers are pushing to get paid faster as they're pressured by the economic lockdown caused by the coronavirus, according to PayActiv, a provider of financial services to employees of companies including Walmart Inc.
PayActiv, a fintech firm backed by SoftBank Group Corp. and Todd Boehly's Eldridge Industries, has seen a surge in new customers looking to get instant access to wages for hours already worked. It reported a 35,000 new users in segments that are expanding.
“America is still running -- it's running with a lot of stress and pressure,” Chief Executive Officer Safwan Shah said in a telephone interview. “These businesses are not giving up.”
PayActiv caters especially to lower-paid employees and can help them get quicker access to earned but unpaid wages and tips. It also works with fast-food companies that are still operating, including Yum! Brands Inc.'s Pizza Hut.
Employees “are really looking to get access to their earned wages earlier than typical,” Boehly, Eldridge's CEO, said Wednesday in a Bloomberg Television interview. “We've seen a big uptick in demand for that product.”
In a March survey of 12,000 clients, PayActiv found that 60% have no paid sick leave, employee insurance or coverage and that 58% have seen expenses increase during the health crisis. Shah said his company is consulting with more than 1,000 employers to help idled workers find new jobs.
“Many employers are trying to attract employees to come in and do the work,” Shah said.
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