Paychex has announced a new partnership with PayPal, integrating PayPal Direct Deposit as a financial wellness benefit within its Paychex Flex® Perks digital marketplace. This collaboration provides employees of Paychex clients, particularly those who are unbanked or underbanked, with an alternative method to receive pay up to two days early and access PayPal's suite of financial products directly through their HCM platform.
Paychex partners with PayPal to offer Direct Deposit as an employee benefit in its Flex Perks marketplace.
Employees can receive paychecks up to two days early by using PayPal Direct Deposit.
The solution targets unbanked workers, citing 5.6M U.S. households without a bank account.
Employees gain access to PayPal's full product suite, including a debit card and high-yield savings.
This integration brings the total number of benefit offerings in Paychex Flex Perks to 25.
The benefit is offered at no direct cost to the employer, with employees self-selecting and paying through payroll.
The partnership directly addresses financial inclusion by providing a direct deposit alternative for employees who may not have traditional banking relationships. Cory Mau, Paychex vice president of corporate strategy, highlighted the need: “Providing an alternative solution for employees of our clients to establish direct deposit connection to either an existing or new PayPal account facilitates effortless access to their compensation, particularly benefiting individuals who may be unbanked.” This move aims to reduce barriers for workers who cite insufficient funds for minimum balances as a primary reason for being unbanked.
Beyond early pay access, employees who enroll gain entry to PayPal's broader financial ecosystem. This includes the PayPal Debit Mastercard®, cashback rewards, person-to-person payments, and PayPal Savings—a high-yield savings account. Scott Young, SVP of Consumer Financial Services at PayPal, stated, “We’re excited to bring that same access to employers and employees of the Paychex Flex Perks program.” The integration is designed to offer both immediate liquidity and long-term financial management tools within a trusted platform.
The addition of PayPal brings the total curated offerings in the Paychex Flex Perks marketplace to 25, underscoring a strategy to help businesses of all sizes offer enterprise-level benefits. The platform allows employees to self-select and pay for benefits through payroll deduction, enabling employers to enhance their compensation packages without direct cost or administrative burden. Paychex reports that over 270,000 employees have already purchased at least one benefit through the marketplace.
This partnership reflects a growing trend in HCM technology: leveraging integrated marketplaces to deliver personalized, financial wellness-focused benefits that address the diverse needs of a modern workforce.
About Paychex
Paychex, Inc. is the digitally driven HR leader that is reimagining how companies address the needs of today’s workforce with the most comprehensive, flexible, and innovative HCM solutions for organizations of all sizes. Offering a full spectrum of HR advisory and employee solutions, Paychex pays 1 out of every 11 American private sector workers and is raising the bar in HCM for approximately 800,000 customers in the U.S. and Europe. Every member of the Paychex team is committed to fulfilling the company’s purpose of helping businesses succeed.
About PayPal
PayPal has been revolutionizing commerce globally for more than 25 years. Creating innovative experiences that make moving money, selling, and shopping simple, personalized, and secure, PayPal empowers consumers and businesses in approximately 200 markets to join and thrive in the global economy.
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