Payment Methods

PayPal Offers Interest-Free Cash Advances To Federal Employees

PayPal

To help those impacted by the government shutdown, PayPal is offering interest-free cash advances up to $500 to federal employees who are new or existing PayPal Credit customers. The move comes as 800,000 workers find themselves without a paycheck, the company said in an announcement.

PayPal President and CEO Dan Schulman wrote in a post, “With the average government employee taking home roughly $500 a week, many people were already struggling before the shutdown. There are bills to be paid, groceries and gas to be bought, families to support. These needs grow more urgent with each passing day.”

PayPal has committed to fund up to $25 million in the advances in order to assist these workers to pay for gas, food and other necessities. Schulman also said that the program has come to fruition with the help of Synchrony and that “we hope that it can provide some relief and certainty in uncertain times.”

In addition, Schulman said that the program is “example of companies having both the opportunity and the responsibility to step forward and help.” He noted that companies such as Kraft, Chase, and AT&T, among other firms, have offered to help these workers and “we are proud to stand with them for those who contribute so much to our public sector.”

The news comes as U.S. banks have been stepping up to help customers impacted by the government shutdown by offering forbearance on loans and the associated fees. JPMorgan Chase, in one case, has waived all fees on checking accounts for customers who no longer receive a government checks directly deposited into their accounts.

In addition, Goldman Sachs’ online lending unit, Marcus, noted in a tweet that it was there for government workers whose payroll is impacted by the government shutdown. The bank said it could provide loan payment deferrals. At the same time, Wells Fargo, Citigroup, Bank of America, Capital One and SunTrust said they plan on helping affected customers who seek assistance.

——————————

New PYMNTS Report: Preventing Financial Crimes Playbook – July 2020 

Call it the great tug-of-war. Fraudsters are teaming up to form elaborate rings that work in sync to launch account takeovers. Chris Tremont, EVP at Radius Bank, tells PYMNTS that financial institutions (FIs) can beat such highly organized fraudsters at their own game. In the July 2020 Preventing Financial Crimes Playbook, Tremont lays out how.

TRENDING RIGHT NOW