Technology transforms whatever it touches.
Take cell phones for example. Decades before the latest smartphones and all of their bells and whistles, the very first cell phones did one thing, and maybe not all that well—they made phone calls.
But now, when you consider everything you can do with your phone, phone calls might not be all that high on your list.
Smartphones have changed how we communicate, how we consume media, and how we work.
But some changes come quicker than others.
Most workers—whether they use direct deposit or still receive a physical pay slip—only get paid on a regularly scheduled payday.
But in a world of smartphones, where apps like PayPal, Venmo, and CashApp have given us the ability to send and receive money instantly, the status quo is not only outdated but can also make life harder for employees.
We all know that emergencies happen. Tires go flat, appliances break, and sometimes you get a surprise bill in the mail. Because many people do not have enough in savings to cover these expenses when they happen, they end up going into debt while waiting for their next paycheck to arrive.
But what if there was a new solution that would give employees early access to their wages so they wouldn’t have to pull out their credit card or take out a payday loan? One that applied the principles of instant access and would let them, with just a few taps on their smartphone, have their own money when they need it, debt-free?
That’s where earned wage access comes in.
Earned wage access gives employees the ability to access and use wages they’ve earned but haven’t received a paycheck for yet.
It’s the kind of evolution that feels obvious in light of today’s technology but is also powerful because of what it enables.
According to a 2020 report by PwC, 54% of those who were polled said they were more worried about their finances than about their health, their relationships, or their careers. And of that same group, approximately 38% had only $1,000 or less on hand to cover emergency expenses.
Given this, earned wage access has enormous power to provide peace of mind.
When faced with an emergency, employees know they have an alternative to solutions that will only put them deeper in debt.
This translates into better financial resiliency for employees as a result.
And it can all happen inside an easy-to-use app.
The benefits of earned wage access aren’t just limited to employees, though. Implementing this new solution now positions businesses to be more competitive by providing an attractive perk that is useful for recruiting and retaining talented individuals.
Download this white paper to learn more about the benefits of earned wage access for both businesses and employees.