MOUNTAINSIDE, NEW JERSEY November 17, 2012
FlexWage Solutions announced today two key milestone achievements in the adoption of its FlexWage payroll card and WageBank alternative to check cashing stores, payday lending, and predatory lenders. “We’re thrilled to achieve our client acquisition goal for the third quarter with more than 50 clients and thousands of new employee users. This achievement validates the FlexWage solution suite, as employers continue to seek options to assist their employees with compelling new benefits with positive impact on their bottom line,” said Frank Dombroski, CEO. FlexWage’s WageBank has revolutionized the payroll card sector adding access to accrued wages, which frees employees from payday loans and check cashing fees.
FlexWage Solutions offers medium and large company payroll card services as well as its proprietary WageBank employee managed debit card tools to access earned wages in advance of payday. The WageBank tools are available both on the web and with tailored mobile applications for Apple’s 250,000,000 iPhones and Android’s 500,000,000 smartphones. FlexWage Solutions products are available at FlexWage.com.
Founded by a number of longtime commercial payment and purchasing card executives, FlexWage Solutions was born out of the belief that “unbanked employees’ exploitation by payday loan and check cashing operators could be solved with technology more quickly than with legislation,” Dombroski said. “We believe that our FlexWage and WageBank solutions are the missing link providing reasonable financial services and eliminating the need for employees to visit predatory lenders between paydays.”
Estimates show that average unbanked individuals making less than $42,000 per year spend more than $1,000 annually to simply cash checks and pay bills. Further, since they have not been able to build an economic buffer to deal with unforeseen emergencies or short-term cash volatility, they often turn to predatory products such as payday loans between paychecks. The average payday borrower takes nine loans a year, spending up to $700 for a $325 loan.