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.

——————————

PYMNTS LIVE TV: POWERING THE DIGITAL SHIFT | MAY 18-22, 2020

Five days of intimate interviews and streaming TV shows ‘starring’ the smartest people in payments.
The economy is slowly reopening on a changed world where “business unusual” is now just “business.” Tune in as PYMNTS CEO Karen Webster and special guests from across the payments universe ditch “digital optional” and bring on the digital-first engagements buyers and sellers really want. Join experts in a series of live conversations rethinking business models, customer experiences, payments choice, verticals…everything.

TRENDING RIGHT NOW