Workforce payments platform Branch announced the launch of Branch Direct, an online instant payment solution that allows companies to pay workers directly to an existing bank account.
Commenting on the news, Branch CEO Atif Siddiqi said more companies are making it easier for employees to get paid quickly given the positive impact instant payments can have on an employee’s cash flow and talent retention.
“Branch Direct addresses this need by offering more flexible, efficient options for companies to deliver and earners to receive instant payouts.” Siddiqi said in a Thursday (July 20) press release.
The tool equips companies with a simple, no-code payments solution that can be set up within days, enabling firms to easily onboard and pay workers at any time, including nights, weekends and holidays.
Branch Direct also offers earners fee-free options to get paid, including instant payouts to a Branch account and ACH transfers to a personal bank account as well as incorporating Branch Direct into an existing in-house mobile application or platform.
With 66% of Americans living paycheck to paycheck as of November 2022, access to real-time payroll could go a long way toward relieving financial stress.
In fact, firms can adopt a system called earned wage access (EWA) to offer employees immediate daily pay for their work rather than the traditional biweekly or bimonthly pay period, according to research published in PYMNTS’ “Real-Time Payments Tracker®.”
The report, which examines how instant access to earned wages can benefit employees and the companies offering the service, features Oglebay, a West Virginia-based resort that has implemented a successful real-time payroll system for its employees, helping to alleviate employees’ personal financial struggles and boost retention.
According to Oglebay’s Vice President of Human Resources Karen Hess, the program was an instant hit with employees when it launched in 2018 and is currently used by 42% of the resort staff to pay for a broad range of everyday expenses.
“The average amount transferred is $94, and on an 11-month basis, the total amount transferred has been about $1.5 million,” Hess told PYMNTS. “People are using it [for] their basic needs: At the top of the list is bills, second is food, third is transit. So it’s for all the right reasons.”