Paychex, Inc. announced a new partnership with PayPal within its Paychex Flex Perks platform, Paychex's digital marketplace of curated employee benefits. Through this collaboration, employees of Paychex customers have the ability to easily set up PayPal Direct Deposit, providing up to two-day early access to their paychecks. According to the Federal Deposit Insurance Corporation, approximately 5.6 million U.S. households were unbanked in 2023 where no one in the household owned a checking or savings account at a bank or credit union.
The survey also found that not having enough money to meet minimum balance requirements (42.3%) was the most cited reason for not having a bank account. Employees who enroll in PayPal Direct Deposit will benefit from: Early Pay Access: By using Direct Deposit with PayPal, employees can receive their pay up to two days early. Access to the full PayPal product suite: Customers who set up PayPal Direct Deposit on Paychex Flex can also take advantage of PayPal's suite of financial products and services, including the PayPal Debit Mastercard which they can use in any store or online, wherever Mastercard is accepted, and earn 5% cash back on a monthly spend category of their choosing.
Customers can also send money to friends and family, earn cashback and rewards in the PayPal app and transfer funds into PayPal Savings, a high-yield savings account provided by Synchrony Bank, with a current 3.65% APY, that's 9x the national average. Enhanced Financial Flexibility: Help employees manage their finances by offering them the ability to transfer any portion of their pay to PayPal, providing choice and flexibility to manage their money effectively with a trusted partner. With the addition of PayPal, Paychex has made 25 employee benefit offerings available through Paychex Flex Perks, which was created to meet the unique personal and financial benefit needs of today's multi-generational workforce.
Paychex FlexPerks is available in Paychex Flex, the company's cloud-based HCM SaaS platform for SMBs, making it easy and intuitive for employees to enroll in benefits. Employees can self-select additional benefits based on their personal needs. Benefits are paid through payroll or directly to the benefits provider at no cost to the employer.
With Paychex Flex Perks., businesses of all sizes can offer enterprise-level benefits that either augment existing employee benefit packages or enable businesses to offer employee benefits for the first time. The digital marketplace is curated with employee benefits to address the needs of today's diverse, multi-generational workforce. More than 270,000 customer employees have purchased at least one benefit from the marketplace.
Paychex plans to continue expanding the number of offerings within Paychex Flex Perks based on evolving trends and customer feedback.
