An article in Digital Transactions caught my eye. It combines some of my favorite topics; faster payments, earned wage access (EWA) products and cross currency transactions. CloudPay is a fintech offering global payroll processing service and earned wage access solutions with a reach to over 130 countries. This week they announced the addition of Visa Direct capabilities to their EWA solution, reducing the amount of time that it takes for workers who want their wages on-demand before payday to get access to their pay. Those who use EWA are typically choosing to receive their pay early because they have a specific and immediate need. Visa’s debit push payment can reduce the transaction time from days to seconds. Here’s more from the article:
CloudPay, a provider of employee payment solutions, is partnering with Visa Inc. to enable payroll to be deposited directly to employee debit or credit cards through Visa Direct, Visa Inc.’s real-time payment network The new service is expected to provide employees immediate access to their funds compared to the two to three days it takes for funds to become available after a direct payroll deposit to their checking account. Payments are being processed by Checkout.com, a London-based fintech.
The first company to offer CloudPay NOW, which launched in 2021, reported a 30% uptake by their employees after two months, according to CloudPay. The company, a global luxury retail brand, offers CloudPay NOW as an employee benefit to give on-demand access to wages that have already been earned, which in effect allows employees to choose their own payday, CloudPay says.
“Enabling solutions that help workers access their paychecks faster through earned wage access and payroll solutions is more vital than ever,” Nicky Alexander, head of Visa Direct Europe, says in a prepared statement. “This is why our partnership with CloudPay is so important. We are delighted Visa Direct is now supporting businesses in their efforts to enhance their payroll systems and enable on-demand payouts for their workers.”
Overview by Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group
