California’s Department of Financial Protection and Innovation (DFPI) announced finalized regulations for the earned wage access (EWA) industry earlier this week. Payactiv’s existing service model is already fully compliant with these regulations, and we are proud to continue providing our users with the EWA services they value without changes or interruptions.
The finalized rule follows a comprehensive, multi-year process with several rounds of stakeholder engagement. The DFPI’s regulations recognize the new and innovative nature of EWA, and are a significant step toward ensuring workers maintain access to their earned wages.
Notably, the final rule does not require providers to obtain a California lending license, and it does not subject EWA to APR or other fee-based caps. Payactiv is proud to continue offering workers five free options to access EWA, as well as one low, nominal, voluntary, flat fee for expedited transfers.
Payactiv appreciates the DFPI’s collaboration and engagement with industry providers throughout this rulemaking process, and it expects to become a registered EWA provider in California after the regulations take effect in February. Payactiv will continue to support robust consumer protections for the EWA industry in California in line with those enacted in several other states.
