PayPal is adding an early-pay option to Workday’s payroll platform, allowing employees at participating employers to send their wages to PayPal accounts through direct deposit. The companies said the arrangement could make pay available up to two days earlier, although the feature will depend on the employer’s participation and payroll setup.
The integration connects PayPal Direct Deposit with Workday’s Enhanced Direct Deposit program. Direct deposit is an electronic transfer of wages into an account selected by an employee. Workday customers using the program can offer PayPal as a destination for employee pay, according to the announcement.
“PayPal is helping consumers make the most of their money, and that means getting access to it sooner,” PayPal Vice President of Debit & Money Management Shanthi Sarkar said.
How the arrangement works
Employees who choose the option can have their pay deposited into PayPal rather than another checking or savings account. PayPal said its system can then be used to send money to family and friends, make purchases at merchants that accept PayPal or move funds into a PayPal Savings account.
| Feature | What PayPal and Workday announced |
|---|---|
| Payroll connection | PayPal Direct Deposit will be integrated with Workday’s Enhanced Direct Deposit program |
| Pay timing | Eligible employees may receive wages up to two days earlier |
| Account setup | Employee routing and account information will be populated within Workday |
| Savings account terms | PayPal said its high-yield savings account has no monthly fee or minimum balance requirement |
PayPal said the setup is intended to reduce manual data entry. Under the arrangement, employee routing and account information is automatically populated within Workday, according to the company. The announcement also described the option as a way for employers to offer another method of receiving wages without additional costs or administrative work, a characterization made by PayPal.
What employees may notice
The central change for workers is the ability to select PayPal for payroll deposits where an employer enables the feature. Earlier access to wages can affect the timing of household cash flow, but the announcement did not say that every employee using PayPal Direct Deposit will receive money two days before the regular payday. It described the timing as an option available through participating Workday customers.
- The service applies to employees of participating Workday customers, not to all PayPal users.
- PayPal said wages may arrive up to two days earlier through direct deposit.
- The announcement did not disclose a launch date for individual employers or say how many workers will be eligible.
PayPal presented the partnership as part of a broader effort to give workers more choice in how they are paid. For employees, the practical effect will depend on whether their employer uses Workday’s Enhanced Direct Deposit program, makes PayPal available and follows the payroll timing that determines when funds are released.
