PYMNTS-MonitorEdge-May-2024

ZayZoon Taps APlus For On-Demand Payroll

Employee financial wellness FinTech ZayZoon has announced a new partnership with APlus Workforce Management Solutions to offer workers access to on-demand payroll.

In a joint press release issued Monday (November 12), ZayZoon and APlus said their collaboration means APlus corporate clients will be able to offer their own employees access to ZayZoon financial solutions. The company aims to offer workers an alternative to predatory lenders and payday loan products, replacing these options with access to wages before their scheduled payday.

Workers can see a portion of their wages transferred to their bank accounts in near real-time for reduced cash flow pressure while professionals wait for their official payday.

“The effects financial health has on physical and mental health is finally being realized,” ZayZoon President Tate Hackert said in a statement, adding that there are an estimated 70 million professionals in the U.S. using payday loans or banking overdrafts on a regular basis — solutions that can lead to added fees and greater financial burdens.

In the same press release, APlus Payroll’s Brian Weimer said, “Giving employees options rather than payday loans or asking employers for advances will reduce the stress on employees and management while saving the employee usury rates charged by those institutions.”

Offering on-demand payroll can support employee productivity and retention for employers, the companies noted.

In a recent interview with PYMNTS, Tim Pratte, senior vice president of business development at human resources solution firm PrismHR, noted that employers are increasingly being looked at as a providers of financial wellness solutions for staff. Small and medium-sized businesses are looking for payroll and HR solutions that can support this demand, he said.

Other payroll and HR firms have taken to introducing on-demand payroll solutions, while the industry is also bracing for faster payments initiatives to disrupt the payroll market, too.

PYMNTS-MonitorEdge-May-2024