August 25, 2023 in Articles

Multikrd Streamlines On-Demand Pay by Incorporating Credit–Building Services

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This new feature helps Americans get control over their payday.

Lack of liquidity is becoming a big problem for the American workforce. The growing number of workers living paycheck-to-paycheck is causing companies, payroll providers, and other HR services companies to move to on-demand pay and paycards for their employees that help them relieve financial stress.

What is On-Demand Pay?

Earned Wage Access (EWA), or On-Demand Pay, gives employees access to the salary that they have already worked for and earned, all through an app or platform. In a few simple clicks, they get instant access to cash that helps solve their liquidity problem to meet their financial commitments. Workers do not have to wait until payday to see some money, stretching their budget and incurring credit or loans with high interest rates.

EWA providers, such as Multikrd, offer these services at no cost to the employer, and the implementation process is quick and simple. Integrations with major HR and Payroll providers, Time and Attendance, and Point-of-Sale systems allows a seamless integration of the platform into a Professional Employer Organization (PEO) or a company’s employee benefits program.

A win-win platform for companies and their employees

Everyone has unexpected expenses and emergencies. People have to meet certain needs, pay debts, or make payments before a certain deadline. Sometimes they rely on credit cards or loans to cover those expenses, which include high interest rates and fees. These cases lead people to accumulate more and more debt and interest that they often do not know or cannot handle. According to a 2022 study by Nuclear Research, 40% of hourly workers across various industries have turned to payday loans to make it to the next paycheck.

Not only that, but credit is not accessible to anyone. According to data from a report by the Consumer Financial Protection Bureau, 26 million Americans do not have credit history. This highly impacts them as it is very important when getting a mortgage, car, loan, or some other expense. A 2019 survey by the Federal Deposit Insurance Corporation shows that 5.4% of U.S. households did not have a savings or checking account.

Multikrd has a secured credit card that works as a prepaid card that is funded by the employee’s earned wages. It helps build and improve credit history as well as banking those who had no access to it before. They do not run any credit history checks when the user applies for the card, and can be gotten physically or virtually.

Tools such as Wage Access, provided by Multikrd, allow employees to access their salaries the moment they need them. This gives them the financial flexibility that they need and prevents them from resorting to loans or credit that encourage their over-indebtedness. In addition, Auto Wage Access allows employees to schedule their pay date and the amount that they would like to receive. This helps with any recurring payments, as employees that know they have to meet a certain deadline can easily and automatically have their pay deposited into their account on the day they choose. No more budget stretching and worrying for employees.

In return, companies improve the productivity of their collaborators, reducing turnover and lowering absenteeism. Studies from Research Nucleus reveal that 31% of hourly workers have missed at least one shift due to the inability to access earned wages.

Having happy and stress-free employees leads to high motivation and engagement in the company. According to a Harris Poll conducted for HR and payroll management company Ceridian, 83% of employees believe they should have access to their earned wages at the end of each day. Additionally, 79% said this would make them feel more valued as an employee, and 78% of employees said free access to on-demand pay would increase their loyalty to an employer.

Paycards that come hand in hand with on-demand pay not only benefit employees, but result in a positive impact on the company overall. It facilitates payroll payments and helps the user with their everyday needs.

Companies that provide their employees with more savings, clout, and cash find that they earn the loyalty that comes with satisfaction and are more likely to attract and retain talent. According to a 2021 Wagestream Earned Wage Access Impact report, 72% feel more in control of their money, and 77% feel less stressed. Additionally, 72% reported improved quality of life, and 88% reduced their reliance on high-cost credit/payday loans.

Not only is it highly beneficial to employers, but it is a zero-cost solution and it is easy to implement. Multikrd adjusts to the payroll processes already established by each company, and the platform can be easily implemented without any operational or administrative burdens on HR teams.

About Multikrd

Multikrd is a platform for employees that is available online through a mobile app and desktop. It is a zero-cost solution designed to boost employees’ financial health. Not only does it allow employees to receive on-demand wages and tips, but it also has other saving opportunities, and it has now launched a secured credit card that allows employees to build or improve their credit. This platform is unlike any other financial tool as it incorporates banking services with saving opportunities and budget management tools that help attract, retain, and engage employees.

Companies and PEOs looking to implement the platform and offer it to their clients or employees can do so easily due to the multiple integrations that Multikrd has in place. It is a zero-cost solution, and it is the only competitor in the market that has a white-label option. Using their modular design, employers can fully customize the platform’s look, feel, and functionality.

Interested in additional information?

Reach out to Chris Kelly at [email protected] for additional details to help determine if this would be helpful to your organization.

This article provided by our partners at MultiKRD, who power our AssetHR Perks program