Tapcheck, a Texas-based earned wage access (EWA) startup, is making significant strides by integrating its services with Workday’s human resources platform. This strategic move aims to expand Tapcheck’s reach to millions of employees globally. By achieving certified integration status on the Workday Marketplace, Tapcheck enables companies using Workday’s human capital management system to offer EWA solutions to their workforce.
Ron Gaver, Tapcheck’s CEO, highlighted the advantages of integrating with HR software systems. In a recent interview from the company’s headquarters in Plano, Texas, Gaver emphasized that such integrations allow for broader access to potential EWA users while enhancing financial and technical efficiencies for both employers and EWA providers. “With the flip of a switch, through the software, we want to enable it to millions of employees,” he stated.
Earned wage access, often referred to as on-demand pay, allows employees to access their earned income ahead of a scheduled payday. This service is particularly beneficial for hourly workers in industries such as hospitality, healthcare, and retail. It offers a tool for employers to attract and retain lower-wage workers. While most EWA providers charge a fee for instant access to funds, Tapcheck offers a $3 to $5 fee for immediate transactions or a free option for slower access, typically within one to two business days.
Workday’s platform is utilized by approximately 11,000 organizations worldwide, including 60% of the Fortune 500 companies. Tapcheck’s client list includes prominent names like Hilton Worldwide Holdings, McDonald’s, Planet Fitness, and Taco Bell. Despite its rapid growth, Tapcheck remains privately held and reportedly profitable, though it has not disclosed specific financial details. Earlier this year, the company raised $25 million from PeakSpan Capital.
In addition to Workday, Tapcheck has recently embedded its EWA tools within Viventium’s payroll software, a firm providing payroll and HR solutions based in New Jersey. This integration covers about 500,000 healthcare workers, and Tapcheck plans to pursue further payroll integrations.
The collaboration with Workday marks a pivotal step in promoting financial resilience and satisfaction among employees, which in turn enhances recruitment and retention rates. Gaver expressed in a press release that the integration represents a major advancement towards achieving these goals.
In a competitive market, Tapcheck is not alone in seeking integrations with payroll and HR platforms. Competitors like DailyPay and Payactiv are also pursuing similar strategies. DailyPay, for instance, integrates with around 200 payroll systems and works with various HR software giants, providing flexibility and choice for employers.
As the demand for EWA solutions grows, the market remains largely untapped. Gaver estimates there are about 80 million hourly employees in the U.S., with only 15% currently having access to earned wage access. He envisions a future where EWA becomes a standard utility integrated into payroll and time-attendance systems.
Regulatory developments are also shaping the EWA landscape. States like Arkansas, Maryland, and Utah have begun regulating EWA providers, and ongoing discussions at the federal level continue to influence the market.
Note: This article is inspired by content from https://www.paymentsdive.com/news/tapcheck-workday-embedded-payments-ewa-payroll/750638/. It has been rephrased for originality. Images are credited to the original source.
