MILWAUKEE -- Getting employees access to money is becoming a primary perk for many companies.
The 'financial wellness' benefit we're talking about would go right into your paycheck.
We spoke to the founder of a company that created on-demand cash to working people
Safwan Shah, the founder of PayActiv tells us they will give an employee up to $500 in advance.
According to Shah, there are three businesses currently using his service in Wisconsin. One is Walmart, another is a car wash chain and the other is a senior living center. In the last six months, 10,000 users have accessed $6 million, racking up a total of 30,000 transactions in Wisconsin alone.
"Some people may worry that there is a danger in doing this too often that people may not be able to keep up with the next paycheck why do you think this is an advantage for people?" asked reporter Julia Fello. "It's got an inbuilt guard rail in it for instance you cannot access more than 50-percent of your net income," replied Shah.
Shah does not call this service a loan, because it is your money. There is a $5 fee each pay period you would use it. He expects the number to rise, not only because he is in talks with about a dozen more companies in our state, the need is great.
There are other third-party organizations that provide this service, which include Instant Financial, FlexWage and DailyPay.