Is earned wage access the same as on-demand pay?

Yes, earned wage access and on-demand pay are different terms for the same benefit.

Which providers offer earned wage access? How does my company get earned wage access if we don’t currently have it?

Earned wage access through DailyPay is available to companies across the United States. Ask your payroll or human resources department if your company offers DailyPay.

How much does it cost to sign up for earned wage access?

There is no cost to your company when you sign up for DailyPay. Employees pay a small ATM-like fee of $3.49 for an immediate transfer or have a no-fee option for a transfer in one to three business days.

Is earned wage access the same as a payday loan?

No, earned wage access is a cost-effective alternative to predatory payday loans. Employees pay a small ATM-like fee for an immediate transfer or have a no-fee option for a transfer in one to three business days, which can save thousands of dollars and avoid damage to credit scores and financial health.

Why should a company offer earned wage access to their employees?

Earned wage access has various benefits for employers and employees. Increased retention, better productivity and greater financial wellness are a few of the notable benefits.

What is the difference between Earned Wage Access and Early Wage Access?

Some companies may offer “early wage access” which allows employees to get their direct deposit a day or two before the typical scheduled day.

What is “On-demand payroll” and is this the same as “earned wage access”?

“On-demand payroll” is often used as a synonym of EWA but it's a broader term. On-demand payroll can also include off-cycle payments and reward payment options.

Is “earned income access” the same as “earned wage access”?

Early income access is another term for earned wage access. It may also be referred to as on-demand pay.

How Can Earned Wage Access Help Your Business?

How Can an Earned Wage Access Platform Help Your Business?

Earned Wage Access Platforms Improve Employee Retention and Morale

Earned wage access (EWA) — also known as on-demand pay — gives employees access to their earned pay before the traditional, scheduled payday.

With an earned wage access platform employers can provide greater financial wellness support for employees, leading to happier and more productive employees across an organization.

DailyPay was among the early pioneers of earned wage access platforms dating back to 2015. Today, earned wage access has become a must-have employee benefit. In fact, 76% of workers across all age groups say it is important for their employer to offer EWA according to a 2022 ADP Earned Wage Access Market Research Study.¹

As the popularity of earned wage access increases, so have the regulations. Nevada and Missouri both recently passed laws around licensing processes and guidelines for earned wage access.²

What is Earned Wage Access Platform?

Earned wage access is a financial wellness benefit that lets employees choose when they get their earned pay instead of the traditional pay cycle.

This increased flexibility of their pay schedule allows employees to potentially improve their financial well-being and avoid predatory lending solutions that can damage their credit and rack up costly interest rates or other fees.

89%

of employees reported feeling more motivated and productive at work when they had access to their pay on their schedule.¹

Today, it’s not a question of whether a company will adopt the benefit but when.

According to Fisher Phillips, 89% of employees reported feeling more motivated and productive at work when they had access to their pay on their schedule.³

Due to this increased demand, more employers are considering earned wage access as a benefit for employees, many of whom want greater flexibility in how they are paid.

What are the Benefits of an Earned Wage Access Platform?

Earned wage access has a variety of benefits for both employers and employees. Let’s take a look at some of the ways each can expect to see some rewards. Additionally, there may be some perceived cons your company should consider when looking into EWA.

Earned Wage Access Benefits for Employers

Aside from the employee desire for earned wage access, employers should recognize the benefits and consider how earned wage access will help their company overall.

63%

improvement in tenure rates by offering earned wage access.² Higher retention rates can reduce the costs of back-filling positions and improve morale.

Increased Employee Retention
A DailyPay sponsored study from Mercator showed that earned wage access can improve tenure rates by 63%.⁴ Higher employee retention can reduce the costs of back-filling positions and improve morale.

Higher Employee Engagement
Research sponsored by DailyPay found that when people worry about finances at work, they’re less engaged.⁵ An outstanding employee experience may help employees feel valued, engaged and supported leading to better employee retention.

Better Customer Outcomes
Employees who are more motivated, engaged and happy in their roles are more likely to deliver better experiences such as:

earned wage access for customer service workers

earned wage access for healthcare workers

On-demand Pay - Real Time Pay to Make Workers Happy

earned wage access for hospitality workers

Helping Employees Access The Pay They’ve Earned, As They Earn It, With On-Demand Pay

earned wage access for supermarkets grocers

Enhancing employee benefits with on-demand pay helps this Jimmy John’s franchisee

Attract and retain top talent with Earned Wage Access from Wisely® Pay

Default Title

Earned Wage Access Benefits for Employees
Financial stress is one of the most common reasons for employee turnover. According to the 2022 PWC Employee Financial Wellness Survey, financially stressed employees are twice as likely to look for a new job.⁶ Employees struggling with financial considerations have higher stress levels,⁷ and this can negatively affect their morale and productivity.

More Than

8 in 10

employers believe employee financial wellness programs and tools help to create more productive, loyal, satisfied and engaged employees.⁶

According to a 2020 study by SHRM, more than 8 in 10 employers believe employee financial wellness programs and tools help to create more productive, loyal, satisfied and engaged employees.⁸

What to Look for in an Earned Wage Access Provider

When selecting an earned wage access provider, evaluate various aspects of the experience for your company.

Consider the vendor’s experience when dealing with the regulatory environment.
Determine if the vendor has experience dealing with companies of your size and if they will meet your needs.
Ensure the earned wage access provider can help improve the overall employee experience.
Evaluate the security and privacy standards and how they protect sensitive information.

So how does on-demand pay from DailyPay stack up against other major earned wage access providers in the market?

The following table provides a fact-based evaluation of earned wage access vendors for your consideration.

Sources: DailyPay; Payactiv; Ceridian (1, 2, 3); Branch

How to Implement Earned Wage Access

Getting started with earned wage access involves planning and collaboration across internal staff and your vendor. During the earned wage access implementation process you should consider vendor partnerships, industry requirements, security and more.

Luckily, the more established vendors like DailyPay make implementation simple and easy.

DailyPay has developed an integrated solution with many payroll providers, which may reduce the implementation time to two weeks. DailyPay will work with you throughout the implementation process to ensure a smooth adoption of earned wage access throughout kickoff, testing, transmission, training and launch.

Learn more about getting started with earned wage access

Get More On-Demand Pay Insights.

Earned Wage Access Regulations

As mentioned earlier, the increased popularity of earned wage access platforms has spawned the need for new regulations. Nevada and Missouri have both recently signed bills into law advocating for legislation and guardrails for earned wage access platforms. California regulators are reviewing rules for the industry and states including Utah, New Jersey, New York, Georgia, North Carolina and South Carolina have considered legislation.⁹

The Consumer Financial Protection Bureau (CFPB) recently issued advisory guidance in regards to EWA programs. According to the guidance, EWA programs can be distinguished from being considered credit.¹⁰

All information herein is for educational purposes only and should not be relied upon for any other use. The information herein does not constitute the rendering of professional advice by DailyPay. DailyPay does not warrant the completeness or accuracy of any information provided to you.

¹ Source:ADP

² Source:Payments Dive

³ Source:Fisher Philips

⁴ Source:DailyPay, 2021

⁵ Source:DailyPay, 2021

⁶ Source:Josh Bersin, 2021

⁷ Source:CNBC

⁸ Source:SHRM

⁹ Source:Payments Dive

¹⁰ Source:ADP

Frequently Asked Questions

What is earned wage access?

Earned wage access is a financial wellness benefit that lets employees choose when they get their earned pay instead of the traditional pay cycle. Read more about what earned wage access is.
Is earned wage access the same as on-demand pay?

Yes, earned wage access and on-demand pay are different terms for the same benefit. Read more about what earned wage access is.
Which companies offer earned wage access? How does my company get earned wage access if we don’t currently have it?

Earned wage access through DailyPay is available to companies across the United States. Ask your payroll or human resources department if your company offers DailyPay.
How much does it cost to sign up for earned wage access?

There is no cost to your company when you sign up for DailyPay. Employees pay a small ATM-like fee of $3.49 for an immediate transfer or have a no-fee option for a transfer in one to three business days.
Is earned wage access the same as a payday loan?

No, earned wage access is a cost-effective alternative to predatory payday loans. Employees pay a small ATM-like fee for an immediate transfer or have a no-fee option for a transfer in one to three business days, which can save thousands of dollars and avoid damage to credit scores and financial health. Learn more about how DailyPay helps workers avoid the vicious cycle of predatory debt.
Why should a company offer earned wage access to their employees?

Earned wage access has various benefits for employers and employees. Increased retention, better productivity and greater financial wellness are a few of the notable benefits. Learn more about the benefits of earned wage access.
What is the difference between earned wage access and early wage access?

Some companies may offer “early wage access” which allows employees to get their direct deposit a day or two before the typical scheduled day.
What is “On-demand payroll” and is this the same as “earned wage access”?

“On-demand payroll” is often used as a synonym of EWA but it's a broader term. On-demand payroll can also include off-cycle payments and reward payment options.
Is “earned income access” the same as “earned wage access”?

Early income access is another term for earned wage access. It may also be referred to as on-demand pay.
Are there fees associated with earned wage access?

Yes, there are fees just like using an ATM, but we offer a no-fee EWA transfer option (1-3 business days). Learn more about no-fee EWA.
What are earned wage access apps?

EWA providers feature apps where users can track their earnings, save money and make transfers to the account or card of their choosing. Learn more about the EWA app.
What is earned wage access software?

While it is often referred to as software, EWA is a tool that can be integrated in existing softwares such as payroll. EWA “software” is an app where employees can make transfers of their earned wages and track spending.