Fremont, CA: Industry leaders and decision-makers are often confronted with a fast-changing corporate environment as technology and digitization continue to grow, requiring them to adapt to new situations to remain competitive constantly. Planning and planning ahead, however, is becoming increasingly challenging in a quickly changing environment. In addition, the future is more uncertain than ever, especially after the coronavirus pandemic's huge disruptions. This holds for the future of global payroll as well.
Atomic, the market-leading payroll connectivity solution, and Bond Financial Technologies Inc., the premier embedded finance firm, have the advent of Atomic's Repay product, which lets customers embed repayment of financial commitments over time directly from their paycheck.
Repay enables consumers to make recurring payments, such as splitting monthly rent or repaying a loan in smaller installments rather than bigger lump sums. By connecting repayments from their paychecks rather than a bank account, this solution prevents financially stressed users from taking out a loan or skipping due dates. In addition, employers bear the administrative costs of an employer benefit, making it an appealing alternative for individuals looking for easier ideas to generate ends meet.
"Repay gives consumers the tools to take control of their finances, both income and liabilities, and for customers to proactively tailor products to their user's financial profile with payroll data. For financially vulnerable consumers, it works as a fractional repayment plan that gives them a lifeline to pay for things they need without having to risk falling behind on bills and incurring an avoidable fee," said Jordan Wright, Co-founder, and CEO of Atomic. "Meanwhile, our customers now have a novel option to build goodwill with consumers by offering better interest rates while minimizing default and late repayment risks."
Atomic leverages Bond's embedded finance infrastructure to generate and open user bank accounts while avoiding the time-consuming interface with a sponsor bank and managing KYC, ongoing transaction monitoring, and compliance. When a user signs up, Repay integrates payroll information. Then, the bond opens a demand deposit account (DDA) for the user, calculates fractional deposits, manages payments according to the due date, and makes payments on time automatically. As a bonus, consumers have full visibility into how their funds are moving around – the system monitors all deposits and payouts, offers ongoing access to activity, and will reimburse any overpayment to the user if necessary, usually in less than a week.
Several collaborators have joined Atomic's Repay beta, and initial consumer feedback is encouraging. For example, Dónde, which provides travel savings accounts as an employee benefit, allows employees to save for and pay for a vacation, increasing paid time off and enhancing overall workplace satisfaction.
