Walmart To Allow Access to Pay Before Payday With The Even App

We have all been there. When you live paycheck to paycheck, waiting for payday to roll around again can be an extremely frustrating experience. This is especially true when you have so many bills to pay that are due right when you get your check. Suddenly, you are left with barely anything after you have paid off all your creditors and the utility companies. What can you do?

Walmart is attempting to help their employees who have this problem by providing additional financial assistance for their workers. At the moment, Walmart provides jobs to over 1.4 million men and women, with their numbers growing every day. Some of these men and women need extra help when it comes to finances, so Walmart has stepped up and is now providing assistance. Read on to learn how.

Walmart and Tech Startups

Walmart has partnered up with two large financial tech startups, known as PayActiv and Even. Their plan will allow their employees admittance to the Even app. Once accessed, employees will be permitted to take out a portion of what they have already earned before their paychecks are given out to them. This decision was announced by the giant corporation on Wednesday.

The feature that employees will use to get to their money is known as “Instapay”. This feature will be available to workers at no cost to them, up to eight times per year. If used more than eight times, workers will have to pay a fee, although Walmart will subsidize this, according to the company spokesperson.

According to the frequently asked questions page on Even’s website, the subscription does cost money to start. An Even Plus subscription costs $6 per month. This will include the Instapay feature of the website that employees need to access to pull out part of their paycheck.

How Much Can be Taken Out?

The big question many have is how much they will be permitted to take out at a time. Walmart does not have a definite answer concerning this question. However, it is important to note that any money that is taken out of a paycheck prior to payday will be deducted from the next paycheck. Employees will still need to budget accordingly.

Users will also be allowed to use the financial tools that Even offers after they sign up for a subscription. This includes a money management function the app offers. This will show users the amount of money they can safely take out of their next paycheck without endangering their upcoming bills.

A Solution for Financial Issues

The Center for Financial Service Innovation have for years put hours of research into income volatility and how hard it can be for employees to budget and plan their paychecks. The founders of Even were among the very first people to take part of the center’s program known as the Financial Solutions Lab. This program is in place to discover new ways to improve the financial goals of employees living in the United States.

The senior vice president of CFSI, John Thompson, spoke with reporters on behalf of the company. He stated that too many employees have to decide which bill to ignore on payday because they don’t have the money to pay it. Many also turn to high-risk borrowing companies to get the cash they need, such as payday loans. With these loans coming with high-interest rates, many people find themselves sinking further and further into debt. He is thrilled to see that the market has acknowledged the need for other solutions for those trying to get out of debt.

The Solution is Here

Thompson has also said that the while the services that Even provides to Walmart employees will help, there must also be guardrails in place to help workers with their money struggles. Given access to payday early still comes with concerns, as many employees may find that they are still short when it comes to their actual pay date. They could still turn to loans at the end of the month to catch up, creating more and more financial woes.

Walmart currently offers workers $9 an hour as a minimum starting wage. Many have stated that Walmart should provide workers with either more hours or a higher wage in order for them to take home larger paychecks when they do get paid.

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