An explosion of new payment methods introduced over the past decade has reshaped how consumers pay for goods and services and how they manage their spending and finances. These consumer trends are influencing how employees want to receive and manage their pay – creating new challenges and opportunities for employers.
By allowing employees to tap into their earned wages before their next pay period, they can pay their bills on time and meet unexpected expenses, without having to pay late fees, overdraft fees, or resort to predatory payday loans. Today, earned wage access (EWA) programs have evolved from the early adoption phase to an established business practice that is part of the benefits package offered to employees. When used effectively, EWA programs could provide employees with greater financial security.
As our survey results suggest, employers also find that employees who use this benefit are more loyal and want to stay with them longer, reducing turnover and its associated costs.
