Branch, Mastercard launch card for hourly workers to get instant payment
Payroll advance provider Branch has partnered with Mastercard and Evolve Bank & Trust to offer a debit card that allows hourly workers to instantly access a portion of their earned wages ahead of their periodic paycheck.
Consumers can sign up for the debit card within the Branch app. Once approved, customers will receive a debit card that is attached to a free digital checking that has no minimum balance requirement and allows fee-free deposits and funds receipt. The Branch mobile app also has built-in personal financial management tools and notifications.
“The way people work today has evolved significantly and as such we need to ensure that we are also evolving the means in which they get paid so that they continue to have access to stable and flexible solutions,” Sherri Haymond, executive vice president of digital partnerships at Mastercard, said in a blog post. “We are thrilled to further extend our partnership with Evolve and Branch in order to ensure that workers can receive their hard earned pay on their terms in a means that works best for their personal financial management approach.”
Inside the branch mobile app is a list of 30 companies that have already integrated employee access, allowing workers to access their funds faster. These companies include McDonald's, Taco Bell, Pizza Hut franchises and others.
The debit card's launch follows a greater trend of paying hourly employees and gig economy workers more quickly than a traditional two-week paycheck period. Rideshare companies Lyft and Uber have enabled faster payments to their drivers in efforts to retain them.
Earlier this year Visa partnered with PayActiv, a San Jose, Calif.-based early wage access provider, to deliver instant payments using its Visa Direct “push to card” service.
According to a 2019 Branch survey, over 40% of hourly workers have no savings, 18.7% have between $1 and $150 saved and just 24% have saved over $500. Branch has raised over $10 million in funding in a Series A round in 2017 according to Crunchbase, a website that tracks investments in private companies.