As truckers pull the load to keep the gears of the economy’s engine turning, paying bills is one thing they should not have to worry about, which is the reason Instant Financial has prioritized getting its on-demand pay solution to fleets hauling critical goods.
Companies can sign up for the Instant Mileage program at no cost, and once set up, their drivers will receive a Visa prepaid card which will automatically give them access to up to 50% of their daily earnings after their shift. That pay is determined by the mileage entered by the supervisor and workers get a notification on the Instant app once it is available.
“Everyone's strapped for cash right now and these [drivers] are on the road 100% of the time,” Pasha said. “We'd love the opportunity to help them get their cash as soon as they finish the day and be able to share that with their family.”
That time to get up and running can take two to four weeks , but Alaa Pasha, CEO of Instant Financial, said the Atlanta-based company will “absolutely” expedite the process for drivers delivering to grocery stores, pharmacies and hospitals.
The Earned Wage Access platform needs to connect to fleets’ payroll and human resources systems to understand data such as how much they pay per mile to accurately calculate pay, so the set-up time varies by fleet based on complexity.
Interested fleets can visit the Instant Financial website to get started and request a demo.
The platform has been used as work perk to increase retention at restaurants and e-commerce deliveries, but Instant Financial saw an immediate need now to help truckers.
“These [truckers] are out there, they're putting their health at risk; they're putting their families at risk,” Pasha said.
A one-week delay in getting a paycheck would create financial difficulty for three out of four Americans, according to a 2019 American Payroll Association survey, a statistic underscored by the current global coronavirus lockdown. Pasha said in his experience, providing even $100 to $150 during a pay period “makes a massive difference,” and helps avoid late fees and overdraft charges.
Instant Financial currently has 175 customers and serves more than 100,000 workers. The startup gets a cut of the merchant fee, making it free for any employer that wants to provide employees and additional option for compensation. Pasha’s ultimate goal is to disrupt the payday lending industry, which he said charges “exorbitant fees.”
