Benefitfocus Adds PayActiv as Financial Wellness Partner

Rhea-AI Summary

Benefitfocus (NASDAQ: BNFT) announced the addition of PayActiv to its Benefit Catalog, enhancing its offerings for employers and health plans. PayActiv provides on-demand access to earned wages, helping hourly workers avoid financial pitfalls like overdrafts. This collaboration aims to improve financial wellness for employees, with potential savings of up to $50,000 annually for companies through reduced turnover. PayActiv serves over 3,000 businesses and claims to have saved users $240 million in fees over the past year.

Positive

• Collaboration with PayActiv expected to enhance employee financial wellness.
• Potential for employers to save approximately $50,000 annually with reduced turnover.
• PayActiv has saved users $240 million in fees over the last year.

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• None.

CHARLESTON, S.C., Sept. 17, 2020 /PRNewswire/ -- Benefitfocus, Inc. (NASDAQ: BNFT), a technology platform provider enabling rapid innovation for employers, health plans and consumers, announced today it has added PayActiv to the ever-growing range of products and services in its Benefit Catalog. PayActiv is a financial wellness solution offering on-demand access to earned wages for hourly workers.

PayActiv is an industry leading earned wage access ("EWA") solution. With PayActiv, employees are able to avoid overdrafts and other penalties by using their already earned but unpaid wages. This helps workers break free of predatory lending practices and provides additional value during financial hardship between paychecks.

"Benefitfocus connects people to the benefits solutions that improve their lives. PayActiv is a great solution that builds hourly workers' confidence and financial security without loans," said Annmarie Fini, Executive Vice President, Customer Success Organization, Benefitfocus. "Employers can help their workers overcome stressful moments in their lives and build a stable economic foundation for the future."  

The PayActiv app provides a holistic financial wellness approach that includes features for bill pay, savings, financial counseling and literacy.  Additional, powerful features can be unlocked with the PayActiv Visa card.

PayActiv CEO Safwan Shah adds, "We are delighted to join Benefitfocus in bringing the most innovative benefits to the American workforce. Families are facing more financial stress than they have in generations," said Safwan Shah, CEO and founder of PayActiv. "Our holistic approach towards financial wellness is a win for both employees and employers. Companies can save as much as $50,000 annually because of reduced turnover for as few as 100 employees enrolled in PayActiv."

PayActiv serves more than 3,000 businesses at over 20,000 locations. Over 4 million workers have access to PayActiv. According to its 2019 Impact Report, an analysis of customer usage of its service, in the last 12 months, PayActiv has saved users $240 million in payday loan, overdraft, and late fees, and reduced employee turnover by over 30%.

Benefit Catalog
Benefitfocus' Benefit Catalog provides employers, brokers and health plans the ability to offer customers more than 85 market-leading specialty benefits products from more than 45 leading brands. This product catalog provides an optimized and engaging enrollment experience that brings all categories of benefits together in one place. 

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About Benefitfocus 
Benefitfocus (NASDAQ: BNFT) unifies the entire benefits industry on a single technology platform to protect consumers for life. Our powerful cloud-based software, data-driven insights and thoughtfully designed services enable employers, insurance brokers, health plans and suppliers to simplify the complexity of benefits administration and deliver health, wealth, property and lifestyle products through a world-class benefits experience. Our mission is simple: to improve lives with benefits. Learn more at www.benefitfocus.com, LinkedIn and Twitter.  

About PayActiv
PayActiv, a Public Benefit Corporation and Certified B-Corp, is a holistic financial wellness platform that gives employees on-demand access to earned but unpaid wages. Businesses that partner with PayActiv see significant cost reductions through increased recruitment, engagement and retention. Employees love PayActiv because it eliminates the expensive between-paychecks tolls of payday loans, bank overdrafts and late fees. PayActiv also offers a suite of financial services that include savings and budgeting tools, bill payment and financial health measurement. PayActiv is the winner of the Innovative Payments Association's Consumer Champion Award for 2020, and finalist of Finovate 2020. PayActiv has also won best in class awards in both FinTech & HRTech, and is the provider of Earned Wage Access to Walmart.

In August 2020, PayActiv released a short film titled We Heard You. Learn more at, visit www.payactiv.com.

INSURANCE NOTICE  
Certain products available on the BENEFITFOCUS BENEFITPLACE™ platform may be regulated through various state agencies as insurance products. Regulated insurance products are offered through brokers affiliated with BenefitStore, Inc. (doing business as 627 Benefits Insurance Agency in California and 627 Insurance Broker Agency in New York), a licensed insurance agency and wholly owned subsidiary of Benefitfocus, or through your, your association's, or your employer's appointed broker as applicable. Any insurance coverage is subject to the issuer's underwriting standards, fees and other terms and conditions associated with specific offering or services as determined by the issuer or provider. 

DISCLAIMER REGARDING FORWARD LOOKING STATEMENTS 
Except for historical information, all of the statements, expectations, and assumptions contained in this press release are forward-looking statements. Actual results or performance might differ materially from those explicit or implicit in the forward-looking statements. Important factors that could cause actual results to differ materially include: the need to innovate and provide useful products and services; our ability to compete effectively; risks related to changing healthcare and other applicable regulations; the immature and volatile nature of the market for our products and services;  our ability to maintain our culture and recruit and retain qualified personnel; privacy; security and other risks associated with our business; management of growth; and the other risk factors set forth from time to time in our SEC filings, copies of which are available free of charge within the Investor Relations section of the Benefitfocus website at http://investor.benefitfocus.com/sec-filings or upon request from our investor relations department. Benefitfocus assumes no obligation and does not intend to update these forward-looking statements, except as required by law.

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SOURCE Benefitfocus, Inc.

FAQ

What is the significance of Benefitfocus adding PayActiv?

The addition of PayActiv allows Benefitfocus to offer enhanced financial wellness solutions, helping hourly workers access earned wages and avoid financial penalties.

How much can employers save by using PayActiv with Benefitfocus?

Employers can save up to $50,000 annually by reducing turnover for as few as 100 employees using PayActiv.

What are the benefits of PayActiv's services?

PayActiv provides on-demand access to earned wages, helping workers avoid overdrafts and financial stress, while also offering features like savings and budgeting tools.

How many businesses utilize PayActiv's services?

PayActiv serves over 3,000 businesses across more than 20,000 locations.

What financial impact has PayActiv had on its users?

In the last 12 months, PayActiv has saved its users $240 million in payday loan, overdraft, and late fees.