Lyft Expanding Banking System For Drivers

Car share company Lyft (NASDAQ: LYFT) hopes to expand a banking partnership with drivers on its platform.

They now have access to an interest-bearing savings account, cashback rewards and other banking services.

Lyft is working with Payfare Inc. (TSX:PAY) to offer mobile digital banking solutions for its workforce.

Lyft Direct is designed specifically for drivers on the Lyft platform. It offers free instant access to earnings after every ride. It features a cashback rewards system and the company claims drivers can use it to save on purchases like fuel.

This upgraded version has new features including Lyft Direct Savings. Drivers now have access to a high-yield savings account, allowing them to grow their savings faster with what Lyft calls "competitive interest rates."

Cardholders can now automatically add a portion of their earnings per ride to their savings account. They will also be able to deposit cash to their Lyft Direct account at ATM locations

Qualified users will also have access to up to $200 in emergency funds to cover shortfalls or emergencies.

Elite drivers on the Lyft platform can get 10% cashback on gas, 12% cashback on EV charging and 5% cashback on dining.

Cardholders can also receive several health and financial wellness tools. They include prescription discounts, financial and wellness advisors, life insurance and accidental death and dismemberment insurance.

Another tool called Spend Insights offers a detailed analysis of spending habits, empowering drivers to make informed financial decisions and manage their money more effectively.

"These new additions to Lyft Direct will help further empower drivers with banking products, financial tools and cashback rewards, whether they are saving for their wedding, providing for a family, or trying to earn some extra money on the side to support their passions and dreams," said Jeremy Bird, EVP of Driver Experience at Lyft.