Paypal partners with Even to improve workforce financial health
By Pavithra R
Under the collaboration, all PayPal employees in the U.S. can now leverage Even to get paid early; automatically budget and grow their savings; and have full visibility into their earnings through an easy-to-use mobile app.
PayPal conducted an assessment in 2018 that examined the financial wellness of its hourly and entry level workforce and launched its employee financial wellness initiative. The firm found that despite market pay alignment, many employees were still struggling to pay their bills each month. PayPal, in response, took immediate action to address these issues and to increase its hourly and entry-level employees’ net disposable income (NDI) to 20%. NDI is the calculation of the financial amount left after paying taxes and necessary living expenses.
“Over the past year, we’ve made significant investments to strengthen the financial health of our workforce. We’ve made substantial progress to increase the net disposable income of all our employees, and our work with Even will help drive further improvements. Together, we’ll help employees safely navigate cash flow challenges, stay on budget, build financial resilience and reach long-term savings goals,” said Dan Schulman, president and CEO, PayPal.
Last year, Paypal rolled out a comprehensive financial health program that included objectives to reduce the cost of healthcare benefits, to make every employee a stockholder, raise wages and offer new financial learning and counselling programs. The firm expects to improve the minimum NDI among hourly and entry-level workers by approximately 16% by the beginning of 2021.
“Dan Schulman and PayPal are ahead of the curve. Dan is showing the country – and other CEOs – that investing in the financial health and resilience of your people isn’t just the right thing to do. It’s the right thing to do for business,” said Jon Schlossberg, CEO, Even.
PayPal plans to introduce equivalent early wage access services to its employees in other markets in early 2021. PayPal Ventures, the company’s venture capital arm, invested in Even earlier this year, demonstrating its belief in Even’s ability to deliver on its vision of working with employers to build a more resilient workforce.
Established since 1998, PayPal is an American company operating a worldwide online payments system that supports online money transfers and serves as an electronic alternative to traditional paper methods like checks and money orders. The company has remained at the forefront of the digital payment revolution for more than 20 years.
IBSi Daily News Analysis
May 17, 2022
Keeping up in a crowded market requires FinTech collaborationsRead More
IBSi FinTech Journal
- Most trusted FinTech journal since 1991
- Digital monthly issue
- 60+ pages of research, analysis, interviews, opinions, and rankings
- Global coverage