Earned wage access (EWA) – also known as on-demand pay – aims to solve timing and short-term liquidity challenges by allowing workers to access some or all of their paycheck before their next payday. EWA remains a relatively new product, and the Financial Health Network continues to build out insights to understand how EWA is designed, used, and what – if any – impact it may have on worker and consumer financial health.
Explore our latest research and insights for providers and policymakers on this product, and please connect with the Financial Health Network to dive deeper as you navigate this evolving landscape.
Earned wage access holds promise as a way to help workers solve short-term liquidity needs, but how are real users actually relying on this product?
One in five families has less than two weeks of liquid savings. For the many U.S. workers living paycheck to paycheck, financial distress can occur in the time between earning and accessing wages.
Earned wage access is shaping up to be the most divisive financial product in decades as industry trade groups and consumer advocates spar over whether EWA should be classified as credit in order to protect consumers.
Looking back over my decade-plus covering fintech, I see parallels between earned wage access (EWA) today and the past paths of equity crowdfunding, peer-to-peer lending and BNPL. Others in the industry do, too.
Many of these apps charge monthly subscription fees, and most charge mandatory fees for instant transfers of funds.
The risk of harm to users' financial health is much greater with direct-to-consumer advances than it is from earned wage access programs, write Jennifer Tescher and David Silberman.
Learn how fintech Even, now ONE@Work, partnered with the Financial Health Network to help more people access their wages right when they need them.
Earned wage access holds promise as a way to help workers solve short-term liquidity needs, but how are real users actually relying on this product?
As many employees struggle with unmanageable debt, employers can make a difference by providing credit- and debt-related financial wellness solutions. Here are fiscal, legal, and regulatory considerations for businesses to keep in mind as they develop offerings to help employees manage debt, build credit, and improve their financial health.
Employers, benefits platforms, regulators, and employees are paying more attention to earned wage access (EWA) products for their potential to improve employee financial health. Employers can maximize the positive outcomes of EWA products by minimizing associated fees, explaining the program mechanics to employees, and providing a complementary suite of financial resources.
One in five families has less than two weeks of liquid savings. For the many U.S. workers living paycheck to paycheck, financial distress can occur in the time between earning and accessing wages.
This is your moment to lead the way as we rewire our society to put financial health first. Learn how the Financial Health Network can help your organization become better informed about relevant issues, work more effectively, and find scalable solutions to drive lasting change.