5 leading U.S. based companies democratizing Earned Wage Access

By Pavithra R

As businesses across the United States work to adapt to new challenges constituted by the COVID-19 pandemic, employers across the country are finding new ways to bolster employee benefits in an attempt to attract and retain hourly talent.

Every year, while Americans wait for their paychecks, more than $1 trillion of their hard-earned money is held up in the pay cycle. Financial-wellness benefits such as earned wage access (EWA) is a payroll innovation that helps hourly workers get access to wages they have already earned in between the two-week pay cycle. Numerous companies entered the payday space and began offering immediate access to earned wages. Here is a list of 5 companies democratizing Earned Wage Access.

DailyPay (2015)

DailyPay is the leading FinTech provider of earned income software. The company was founded on a mission of providing employees more control over when they get paid and helping them achieve financial security. The firm  developed technology that would allow employees to access their earned but unpaid wages. It’s solutions easily integrate with companies’ payroll and time management systems giving employees control over their pay.

Since the onset of the Pandemic, The company has been continuously engaging with clients to reduce its impacts by offering new solutions, partnerships, and by giving free access to pay for employees. There is no charge to sign up for DailyPay. Employees pay a small fee of $1.99 per transaction to receive the funds the next day or $2.99 per transaction to receive funds instantly. Its client portfolio includes Adecco, Rockaway Home Care, Berkshire Hathaway and Six Flags.

Branch (2015)

Branch is a challenger bank that partners with employers to help working Americans grow financially. Employees that sign up with Branch can receive a zero-fee bank account, free instant access to earned wages, and budgeting tools to help them manage their cash flow between paychecks. For money transfers to an external account, Branch charges an instant delivery fee from $2.99 to $4.99 depending on how much the user transfers. 

PayActiv (2012)

PayActiv was founded to level the playing field for the millions of lower-income hourly workers being exploited and monetized for their’ between paychecks’ cash flow timing issues. 

PayActiv is a complete standalone ready-to-use mobile app and API which provides the funds for earned wage access. Partners can easily integrate it via RESTful web interface or embed it via OAuth-like feature. According to the firm’s research, the average American worker can save $250 each month by tapping into earned wages and avoiding the fees associated with alternative financing sources.

PayActiv currently serves more than four mn employees at over 1,000 businesses across retail, business processing services, food services, and over 400 senior living and healthcare businesses. Its clients include Walmart, Ibex Global, Wayfair, and many others. The firm raised $100 mn in Series C funding in August this year. 

Earnin (2012)

Earnin, formerly called Activehours, is an app that lets users draw small amounts of their earned wages before payday. The company’s mission is to build a financial system that works for people.

Earnin is a community-supported app that lets people get paid as soon as they leave work, with no fees, interest, or hidden costs. The company relies on users to tip what they feel is fair. Earnin can be easily activated by linking a checking account and adding employment info. Users can get $100 per pay period with limit having the potential to increase to $500 per pay period on responsible use of the app.

Instant Financial (2015)

Instant Financial, formerly called PayHero, is an earned wage access company that gives employees access to their pay after every shift at no cost to employees or employers. The company’s mission is to empower millions of hourly workers by putting employees in control of accessing their pay, while significantly improving employee retention & engagement for their employers.

The company’s platform reduces payroll administration and operational costs by replacing paychecks and direct deposits and helps employees to have real-time access to their earned pay and control over their finances while providing employers with direct savings and increased employee retention. Employees can use their Instant card to make purchases, get cash, or transfer funds to their bank account.