Earned Wage Access: A Financial Wellness Solution For The American Worker

Illustration titled "Thought Leadership" with five light bulbs, one lit among four unlit. "dailypay" logo at the bottom.

Today, most Americans are unable to afford a $500 emergency expense. For individuals living paycheck-to-paycheck, encountering an unplanned expense–like a car repair or medical bill–can drive them to overdraft their bank account, take out a predatory payday loan, or pay other bills late.

For generations, workers have waited two weeks to be paid for wages earned. This paradigm has shifted, and forward-thinking companies have already made the decision to invest in solutions that meet the needs of American workers today. As businesses compete to retain a qualified workforce, employee wellness strategies should include common-sense options that make life better for people, like Earned Wage Access (EWA), commonly referred to as on-demand pay. This tool allows employees to access their earned pay when needed instead of on a fixed paycheck distribution schedule that is ill-equipped to meet the needs of today’s workforce.

On-demand pay offers many benefits. The platform is not a loan; rather it provides users with access to their earned net pay on their own schedule, rather than waiting for their next scheduled paycheck. There’s never any recourse to the user, and there are no interest charges, late fees, finance charges, credit checks, or collections of any kind. In fact, data shows that on-demand pay users are more likely to avoid payday loans, overdrafts, and paying bills late.

Used by millions of workers nationwide, an overwhelming 96% of employers said offering on-demand pay helps attract workforce talent. Businesses who empower workers to respond to financial challenges have seen easier recruitment and lower training costs, stronger employee engagement, and an overall improvement in business results. In addition, those employees with access to on-demand pay typically pick up more shifts, report higher satisfaction with their employer, and stay on the job longer

Last month, The U.S. House Committee on Financial Services Subcommittee on Digital Assets, Financial Technology and Inclusion held a hearing to explore how innovative platforms like on-demand pay can drive our economy forward.

DailyPay continues to be supportive of the development of reasonable regulatory frameworks that include straightforward, common-sense standards with transparent, accessible terms of service, required annual data reporting, and a no-cost option for all consumers.

At DailyPay, we have developed an EWA platform that integrates with employer payroll systems. Our partnerships with more than a thousand employers have already helped millions of American workers become financially stable and achieve financial control through voluntary, on-demand access to pay already earned.

We partner with employers across virtually every industry, integrating directly with their timekeeping, attendance, and payroll systems. This gives us a verified and accurate picture of accrued net earnings–not an estimate. Employees have clear visibility into available funds, which they can choose to access, leading to informed, rational financial management.

Both conceptually and in practice, employer-integrated on-demand pay platforms like DailyPay are not loan or credit products, and should not be treated as such. DailyPay, regulators, and consumer protection advocates share many of the same goals, and I’m confident in our collective ability to establish a thoughtful path forward that puts employees first–especially when they need it most.

A growing, thriving, and fair economy is our country’s biggest competitive advantage, and it is imperative we help workers succeed.

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Empowering for Employees

Greater financial control with access up to 100% of their DailyPay balance to meet the challenges of unexpected financial disruptions.

Improved planning with visibility to spending and earned pay in one easy-to-use app.

No need for a pre-existing checking or savings account.

Simple and Secure for Employers

Minimal change to payroll processes — DailyPay handles it all.

Seamless integration with HCM, payroll, banking and benefit applications.

Enterprise-grade platform that keeps data private and the service running so it's always there when your employees need it.

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