PayActiv, a U.S.-based provider of employment-based holistic financial wellness services, announced on Wednesday it has become a Public Benefit Corporation, which is described as a corporation that performs a specific function for the benefit of the public. According to Safwan Shah, CEO of PayActiv, the move to become a Public Benefit Corporation gives us the platform to put people “alongside profits, aligning social goals with economic goals.”
PayActiv also reported that as a Public Benefit Corporation, its key mission is to help lower-income and hourly wage employees access their earned but unpaid wages and other financial services, resulting in reduced financial distress and increased financial wellness.
“Benefit Corporations are part of a global movement to use business as a force for good. Benefit Corporations are expected to make a positive impact on society and have relatively higher standards of corporate accountability and transparency. All decisions made by Benefit Corporations are required to consider social and environmental impacts on all stakeholders and their mission must include public benefits.”
As previously reported, PayActiv describes itself as a holistic financial wellness platform for employees to get on-demand access to earned but unpaid wages. The company claims that businesses that use its services see significant cost reductions through increased engagement and retention. The branding to a Public Benefit Corporation comes just a little over six months after PayActiv surpassed $1 billion in processed funds for timely earned wage access to the underserved and underbanked workforce.