The acquisition of Payfare by Fiserv marks a significant milestone in the expansion of embedded financial services. This strategic move brings together Payfare's innovative workforce payment solutions with Fiserv’s robust processing and value-added services. The integration aims to offer comprehensive banking, payment, and lending solutions for businesses and gig economy workers. Additionally, research highlights the growing demand for more frequent pay schedules, with many consumers preferring instant payments to boost job satisfaction and attract talent.

Enhancing Workforce Payment Solutions

Fiserv has successfully integrated Payfare into its team, expanding its capabilities in card program management and consumer applications. Payfare’s founders and employees now contribute to Fiserv’s mission of delivering modern digital experiences. This acquisition enhances Fiserv’s position in providing complete embedded finance solutions, combining Payfare’s strengths with Fiserv’s expertise in bank ledgers and integrated services.

Payfare has established itself as a leader in workforce payments for gig economy companies. By joining forces with Fiserv, Payfare gains access to advanced technology and increased scale, enabling it to serve larger organizations more effectively. CEO Marco Margiotta emphasized that this partnership positions Payfare to deliver enhanced digital experiences. Fiserv’s chairman, Frank Bisignano, noted that Payfare’s innovation aligns perfectly with Fiserv’s goal of accelerating embedded finance solutions for clients, empowering their future success.

Meeting the Demand for Instant Payments

Research underscores the increasing preference for on-demand pay among consumers. A study revealed that 83% of individuals desire more frequent pay schedules, moving beyond traditional biweekly payments. Gig economy workers, in particular, show a strong inclination towards immediate compensation, with 75% expressing a desire for more frequent paychecks. Moreover, millennials consider earned wage access as a crucial factor when evaluating job offers, with 96% of corporations reporting positive employee responses to EWA programs.

The PYMNTS Intelligence report “No-Wait Wages: Leveraging Instant Payments to Boost Employee Satisfaction” highlighted that 77% of consumers opt for instant payments for income disbursements. This trend reflects a broader shift towards real-time financial transactions, driven by the need for financial flexibility and immediate access to earned wages. Companies offering EWA not only enhance employee satisfaction but also gain a competitive edge in attracting top talent. As Fiserv integrates Payfare’s offerings, it addresses these market demands, positioning itself at the forefront of the evolving financial landscape.