Latest news with #EWA
Miami Herald
2 days ago
- Business
- Miami Herald
What's the difference between earned wage access and a loan? How to know which is right for you
What's the difference between earned wage access and a loan? How to know which is right for you When you're hit with a surprise cost like a car repair or medical bill, waiting for payday can be challenging. But sometimes, you don't have to. Enter earned wage access (EWA), which goes by numerous nicknames - on-demand pay, daily pay, instant pay, same-day pay, instant payroll, and accrued wage access among them - and allows you to snag the money you've earned early. Some companies offer EWA as a company perk, but there are also third-party services that bring it directly to consumers. With roughly a quarter of households living paycheck-to-paycheck according to a Bank of America report published last year, it's no surprise that some people are flocking to EWA services that can help them cover the cost of groceries, utilities and more. The Consumer Financial Protection Bureau (CFPB) found that the market for earned wage products is growing, with the share of workers using the products at least once a month jumping from 41% in 2021 to nearly 50% in 2022. But it's important to fully understand how these services work before you take the leap. Consumer banking platform Current explains. What is earned wage access? Earned wage access programs allow workers to pocket a portion or all of their paycheck outside their typical payroll cycle. The exact process will vary by program, but here's an example: Say you are usually paid out for your work weekly or bi-weekly. Instead of having to wait until the next day for your money to hit your bank account, you can request to have some of the money come through now (or within a few days, depending on the service) and see the remainder of the paycheck on payday. Employer-sponsored services require that your employer offer EWA as a benefit, and will use your payroll records to track your earnings and pay out the remainder of your payment on time. Companies that offer EWA - including Uber, Walmart, and McDonald's - often have hourly workers. Direct-to-consumer products determine your EWA limit by analyzing your earnings history. How is earned wage access different from a loan? While loans are a way to borrow money and pay it back with interest over a set period of time - from a few months to years - EWA is early access to money you have already earned without having to pay interest. When you use an EWA you're tapping money that is yours, but just doing so before payday. The funds you get early are then excluded from your paycheck. If you're looking for extra funds to help cover a big expense, like a car repair, "it's probably best to go the loan route," says Ben Loughery, a certified financial planner and founder of Lock Wealth Management. EWA will typically have maximums for how much you can access at once, like $500. When you borrow money via a personal loan, you'll owe the lender an annual percentage rate (APR) - and those can take a chunk out of your wallet. As of June 11, the average personal loan interest rate was 12.65%, according to Bankrate. The rates can be especially steep for payday loans: Typical two-week payday loans with a $15 fee for every $100 borrowed come out to an APR of almost 400%, the CFPB points out. Plus, if you don't pay back the loan as promised, your credit score can take a hit. That's not a concern with EWA. Should you choose earned wage access or a loan? In an ideal world, you have an emergency fund available for when surprise costs arise, and you're managing your cash flow in such a way that you don't need to turn to a loan or EWA, explains Catherine Valega, financial advisor and founder of Green Bee Advisory. But that's not always the case. "If you have access to earned wage access, it is much better than a payday loan," Valega says. She adds that because many people are more familiar with payday loans, they tend to seek those out first and "shoot themselves in the foot" because they then face high interest rates that take a huge chunk out of the money that should hit their accounts. "With earned interest rates, there's a fee, not an interest rate, and you've completed the work so you have earned that money … I would absolutely start there first." Loughery says to take caution, especially if you're not good with managing your cash flow. You shouldn't rely on EWA as a long-term fix. "But if you are in a bind, it could be a great solution," he adds. How to find an earned wage access product If your employer offers EWA, there's likely already a service for you to select. But if you're going the third-party route, assess the following features: Fees. Some services charge subscription fees, fees for accessing your money and/or a fee for accessing your money instantly. Some even ask for an optional tip. Ideally, you'll want to go with a service that provides low or no fees for accessing your money early - it's money you've already earned, after all. Fund timing: How long will you have to wait for your money? In most cases, you'll see the money hit your account within a few business days. But if you need the money instantly and there's a high fee for receiving the money at a moment's notice, you may want to look elsewhere. Deposit limit: The amount of your paycheck you can tap early will vary by service. One may allow you to gain access to half your paycheck early, while another could offer to send you just a portion of your daily earnings or set a daily dollar amount limit. Before you choose to go with a EWA service, make sure you will actually be able to get what you need if you're in a tight spot. This story was produced by Current and reviewed and distributed by Stacker. © Stacker Media, LLC.
Forbes
6 days ago
- Business
- Forbes
Why Earned Wage Access Could Redefine The Social Contract Of Work
Arbia Smiti, CEO & Founder of Rosaly, an EWA B-Corp in France that's improving financial well-being through on-demand pay. Since the 1960s, monthly pay has stood in France—and in much of the world—as a symbol of stability and social progress. Designed for an era of predictable employment and linear economic growth, the monthly salary once met the needs of both employers and workers. But in today's economic reality—marked by inflation, rising financial vulnerability and the gig economy—the rigidity of that model is being challenged. I think the next social innovation is not about more pay but about better access to it. In France, as in many countries, financial pressure is mounting. Nearly half of French workers experience bank overdrafts at least once a year. According to the latest Panorabanques data, the average overdraft is €223. The disconnect is clear: Expenses occur daily, but pay is received monthly. While the French Labor Code technically allows for salary advances (or acomptes), this right often remains underused. Why? Because the system can be administrative, opaque and socially stigmatized—used only in emergencies, rarely encouraged by employers and poorly understood by employees. Earned wage access (EWA) offers a new approach. By allowing employees to unlock a portion of their earned wages before payday, EWA aligns income access with real-life spending rhythms. Unlike loans or credit-based products, EWA involves no interest, no debt and no obligation—just early access to wages already worked for. In countries like the U.S., U.K., India and Spain, the model is rapidly gaining ground. Fintech providers and HR platforms now integrate EWA seamlessly into payroll systems, creating a flexible, low-friction financial buffer for workers. In the International Labour Organization's April 2025 global report on EWA, survey respondents indicated that: • 52% to 85% of users reported reduced financial stress. • 50% to 86% gained self-confidence from having flexible access to their income. • 87% to 99% rated the speed of access as 'good' or 'very good.' • 60% to 87% used EWA instead of more costly alternatives like payday loans or overdrafts. The report also underlined benefits for employers: improved retention, higher productivity and reduced administrative burden linked to manual salary advance requests. France already has the legal groundwork to support EWA: The right to a salary advance is embedded in national labor law. What's often missing is modernization—both in terms of digital infrastructure and cultural perception. While American and British employers often offer EWA as a strategic HR benefit, many French companies still treat it as a marginal, manual exception. And yet, workers increasingly live paycheck-to-paycheck, and financial emergencies are rarely aligned with the calendar month. Making EWA accessible through digital, automated and secure channels could unlock a transformation—one that supports employees without disrupting company cash flow or payroll operations. Let's be clear: EWA is not a call to abandon monthly pay. It is an evolution—one that adds fluidity, not instability. When offered responsibly, with clear caps, employer oversight and zero cost for employees, EWA can become a tool for dignity and autonomy. It also responds to broader labor market shifts like freelance work, platform economy jobs and growing demands for real-time compensation. In this context, salary flexibility is not a gimmick; it's a structural adjustment to an outdated system. Beyond its financial function, EWA can reshape the employee experience. It signals trust, transparency and care. It lowers the psychological burden of asking for help. And it fits naturally into a broader movement toward financial wellness, inclusion and responsible compensation. As companies compete for talent in sectors under pressure—retail, logistics, healthcare—EWA can be a differentiator. But more than a perk, it is a response to systemic friction in the way we pay for work. For business leaders exploring EWA, the first step is to assess workforce needs: • What percentage of your employees are hourly or shift-based? • Are financial stress or overdraft-related absences a recurring issue? • How many salary advance requests do your HR teams manage manually? Next, consult your payroll provider. Many digital EWA solutions integrate with other business systems. You may want to look for platforms that provide customizable caps (e.g., 30% to 50% of salary), employer control (eligibility criteria, pause functions) and compliance with GDPR and labor laws. Equally important: Communicate clearly. Employees need to understand this is not a loan or a credit service. Offer onboarding support and Q&A sessions, and explain how usage is tracked and protected. While EWA offers clear benefits, implementation must be thoughtful: • Risk Of Overuse: Without education and caps, employees might rely on advances habitually. • Cost Transparency: Solutions must be fee-free for workers or capped at a symbolic level. Otherwise, it risks creating new financial stress. • Regulatory Oversight: In some countries, the legal framework around EWA is still evolving. France benefits from existing provisions, but global companies must evaluate jurisdictional nuances. • Cultural Shift: HR teams may need time to adapt their perception of EWA—not as a vulnerability signal, but as a wellness benefit. To mitigate these risks, start with pilot programs, monitor usage behavior and gather employee feedback before full rollout. Regular reporting and HR dashboards can help track impact without micromanaging. We no longer live in a world where the end of the month matches the end of financial need. EWA brings payroll into the 21st century. More employers and HR leaders are starting to see EWA not as a workaround but as a lever for social progress. Because when workers gain financial breathing room, businesses often gain engagement, loyalty and resilience in return. I don't think the future of work will be built on rigid pay cycles—it will be built on fairness, flexibility and the courage to rethink even our most established norms. The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation. Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?
Yahoo
14-06-2025
- Business
- Yahoo
Tapcheck embeds EWA in payroll
This story was originally published on Payments Dive. To receive daily news and insights, subscribe to our free daily Payments Dive newsletter. Earned wage access provider Tapcheck is integrating its EWA software with Workday's human resources services as part of an ongoing effort to expand its business to millions of additional employees. The company announced Friday that it has achieved certified integration status on the Workday Marketplace, which allows companies using Workday's human capital management platform to access solutions for their employees' needs. Such integrations with HR software systems allow for a larger pool of potential new EWA users and also provide increased financial and technical efficiencies for both employers and EWA companies, Tapcheck Chief Executive Ron Gaver said in a May interview at the company's headquarters in Plano, Texas. 'With the flip of a switch, through the software … we want to enable it to millions of employees,' he said of the company's move into HR integrations versus separate one-off employer connections. Earned wage access – also known as on-demand pay – allows workers to tap their earned income before a regularly scheduled payday, generally without costs for employers. These payments typically cover hourly employees, such as those working in restaurants, hotels, and home health care, with EWA giving employers a means to retain and recruit lower-wage workers. Most EWA providers charge a fee to employees to receive money instantly – it's $3 to $5 at Tapcheck – or will offer a free option for slower access that is usually within one or two business days. Workday says its platform is used by around 11,000 organizations globally, including 60% of those listed in the Fortune 500. Tapcheck works with about 4,000 companies including Hilton Worldwide Holdings, McDonald's, Planet Fitness and Taco Bell. Privately held Tapcheck, which raised $25 million in new funds from PeakSpan Capital in April, declined to reveal any financial data. The company is profitable, Gaver said. Tapcheck rolled out a similar integration in April, embedding its EWA tools within payroll software from Viventium, a provider of payroll, human resources and compliance solutions based in Berkeley Heights, New Jersey. About 500,000 healthcare workers are covered by Viventium's cloud-based payroll platform, the companies said. Tapcheck will pursue additional payroll integrations, Gaver said. The Workday partnership 'represents a significant advance towards cultivating financially resilient and content employees, which ultimately enhances recruitment, retention, and overall business success,' Gaver said in a press release shared with Payments Dive. Larger EWA competitors, such as DailyPay and Payactiv, also seek to integrate their solution with numerous payroll and HR platforms. San Jose, California-based Payactiv, for example, says it works with seven of the largest HR software companies, including ADP, Oracle and Workday. A spokesperson for New York-based DailyPay, another large EWA provider, said most payroll companies that operate a marketplace will typically have multiple EWA vendors for employers to select among. DailyPay integrates with about 200 payroll systems, he said by email this week. HR marketplace-based flexibility also offers companies a simpler path for switching their EWA provider. Since early 2024, more than half of Tapcheck's new customers have shifted to it from another EWA company, asserted Gaver, who co-founded the company with his wife, Kayling, in Los Angeles six years ago. 'From our perspective, the market is really pretty much open,' Gaver said. 'It's about 80 million hourly employees in the U.S., and maybe 15% of them right now have access to earned wage access. Eventually, it will be something that everyone has. It's going to be kind of a utility that is going to be a plug-in to payroll and also time-attendance systems.' States are gradually beginning to regulate EWA providers, with Arkansas, Maryland and Utah adding to the collection this year. Last year, the Consumer Financial Protection Bureau sought to regulate EWA providers under federal lending laws, a move that fintechs opposed. However, under the Trump administration, the CFPB has been reversing many of its prior policies. In January, the bureau rescinded a 2020 advisory opinion classifying certain EWA products as credit. It has not yet addressed the Biden administration's July 2024 interpretative rule on EWA. This story has been updated to correct the spelling of Tapcheck co-founder Kayling Gaver's name. Recommended Reading Maryland passes EWA law Sign in to access your portfolio
Business Wire
10-06-2025
- Business
- Business Wire
ZayZoon Launches Perks Marketplace to Expand Financial Wellness Access for All Employees
PHOENIX--(BUSINESS WIRE)-- ZayZoon, the most accessible Earned Wage Access (EWA) solution for all businesses, today announced its new Perks Marketplace. Building on its mission to strengthen the employer-employee relationship, ZayZoon is introducing new features, expanded partnerships, and a redesigned experience that elevates the company's financial benefits hub. Through its Perks Marketplace, ZayZoon provides employees with exclusive savings, financial tools, and wellness supports that make everyday life more affordable and manageable. Coming shortly after ZayZoon's new Rewards and Recognition product earlier this year, this launch marks a significant step forward in ZayZoon's evolution into a comprehensive workplace utility and financial benefit for all segments of the workforce. Through its Perks Marketplace, ZayZoon provides employees with exclusive savings, financial tools, and wellness supports that make everyday life more affordable and manageable. 'Employee expectations have evolved faster than most employers can keep up,' said Darcy Tuer, CEO of ZayZoon. 'Frontline workers especially aren't getting the sorts of benefits that we see in other sectors. The Perks Marketplace helps close that gap, giving every employee access to tools that support their financial health and overall wellbeing.' ZayZoon's expanded offering supports employees across new financial use cases, including credit-building, tax-filing, and money management. And Tuer confirms this is only the beginning. 'We're not done. Our team is already working on adding new utility, like the ability to earn extra money directly within ZayZoon. We expect to have dozens of perks before the end of the year.' New Perks. More Value. Broader Reach. At launch, the Perks Marketplace includes a broad set of new and existing offerings that help employees: Save on essentials: Boosted gift card values to save on groceries and gas through Prizeout, plus up to 80% discounted prescriptions via Clever RX. Get insured: Compare coverage options and save on recurring expenses with Savvy, Insurify, Embrace Pet Insurance, Everyday Life, and InsureMyTrip. File taxes: Easy, low-cost tax filing supported through Column Tax and H&R Block to help employees manage the stress of tax time. Support wellness: Affordable access to mindfulness and mental health tools via and Balance. Manage and protect finances: Tools like Monarch Money, LegalShield, FastWill, and Kikoff provide budgeting support, legal access, and credit-building opportunities. 'This isn't just a bigger perks package, it's a smarter way for employers to tackle retention and engagement,' said Tate Hackert, Chief Strategy Officer at ZayZoon. 'With the Perks Marketplace, employers can offer meaningful benefits that support every employee and strengthen their business from the inside out.' The Perks Marketplace launch supports ZayZoon's broader objective of providing a total solution that meets the needs of the evolving deskless workforce. By spotlighting value beyond on-demand pay, ZayZoon enables employers to foster a supportive, engaged relationship with their workers. This approach helps businesses better attract and retain talent in today's competitive hiring landscape. About ZayZoon ZayZoon works with North American employers to create the reconnected workplace, where deskless workers have greater control, opportunity, recognition and confidence in their jobs. Integrating with all major payroll platforms and backed by over 300 partners, ZayZoon is designed for ease of use and rapid implementation, allowing employers to quickly offer immediate access to earned wages connected to their existing payroll systems. Beyond pay access, ZayZoon provides financial education, employee engagement tools like rewards and recognition, and valuable financial perks—including savings on prescriptions and insurance—all aimed at boosting employee satisfaction and enhancing the overall workplace experience. To learn more, visit .
Biz Bahrain
03-06-2025
- Business
- Biz Bahrain
EWA sign "Kafa'a" initiative implementation agreements
The Electricity and Water Authority (EWA) signed implementation agreements for the first phase of the national programme 'Kafa'a', aimed at improving energy efficiency in government buildings. The agreements were signed with Saudi-based Quantum Energy Solutions and ESTA Middle East, both specialised in energy efficiency services. Kamal bin Ahmed Mohammed, President of EWA, emphasised that the initiative represents a strategic step in national efforts to enhance energy efficiency and reduce carbon emissions. He noted that the first phase targets energy efficiency upgrades in 12 government buildings, as part of a wider plan to cover 20 buildings during the current year. He added that the initiative is expected to save approximately 308 gigawatt-hours of electricity and reduce carbon emissions by nearly 154,000 tonnes by 2040, making it one of the Kingdom's flagship projects supporting the goal of carbon neutrality. The current phase includes buildings belonging to several ministries, including the Ministry of Education, the Ministry of Health, the Ministry of Justice and Islamic Affairs, and the Bahrain Authority for Culture and Antiquities (BACA). EWA will oversee all stages of project implementation and monitor the outcomes to ensure the intended targets are met. This will be carried out in collaboration with specialised companies delivering the programme, to enhance energy efficiency in both public and private sector facilities, while achieving sustainable operational savings and reducing carbon emissions. Launched in December 2023, the 'Kafa'a' programme is a national initiative designed to reduce electricity consumption in both public and private sector buildings and consequently lower carbon emissions. The initial implementation phase targets 20 government buildings. BNA(R)
