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Why Earned Wage Access Is Critical for Employees and Businesses
Times of rampant high inflation, such as that we are living in now, affect consumers and businesses in various ways. But one segment that is typically most adversely affected by inflation are workers who are paid an hourly wage. How can earned wage access make an impact?
As inflation forces difficult spending and budgeting decisions in households across the country, this demographic is among the hardest hit. One study conducted in July found that about half of hourly workers did not have any emergency savings at all, and nearly 80% had less than $500 tucked away. Only a small percentage of workers have seen their wages outpace inflation, according to research.
This is why it is critical for employees to have on-demand pay access in order to better manage their cash flow. And it’s also important for employers to offer this service, which plays a large role in employee retention and satisfaction. To learn more about earned wage access, PaymentsJournal sat with Darren Cho, VP of Product at DailyPay, and Steve Murphy, Director of Mercator Advisory Group’s Commercial and Enterprise Payments Advisory Service.
PaymentsJournalWhy Earned Wage Access Is Critical for Employees and BusinessesPaymentsJournal Why Earned Wage Access Is Critical for Employees and BusinessesPaymentsJournaljQuery(document).ready(function ($){var settings_ap26174883 = { design_skin: "skin-wave" ,autoplay: "off",disable_volume:"default" ,loop:"off" ,cue: "on" ,embedded: "off" ,preload_method:"metadata" ,design_animateplaypause:"off" ,skinwave_dynamicwaves:"off" ,skinwave_enableSpectrum:"off" ,skinwave_enableReflect:"on",settings_backup_type:"full",playfrom:"default",soundcloud_apikey:"" ,skinwave_comments_enable:"off",settings_php_handler:window.ajaxurl,skinwave_wave_mode:"canvas",pcm_data_try_to_generate: "on","pcm_notice": "off","notice_no_media": "on",design_color_bg: "111111",design_color_highlight: "ef6b13",skinwave_wave_mode_canvas_waves_number: "3",skinwave_wave_mode_canvas_waves_padding: "1",skinwave_wave_mode_canvas_reflection_size: "0.25",skinwave_comments_playerid:"26174883",php_retriever:"https://www.paymentsjournal.com/wp-content/plugins/dzs-zoomsounds/soundcloudretriever.php" }; try{ dzsap_init(".ap_idx_388558_25",settings_ap26174883); }catch(err){ console.warn("cannot init player", err); } });
DailyPay partners with employers to enable employees to instantly transfer money between pay periods that they have earned to any bank account for a small fee, with 100% of their net pay earned up to that point available. Most of the employers it partners with pay a large segment of their workers on an hourly basis. The firm also recently created a Digital Wallet called Friday, which comes with GPR Visa card and companion mobile app. Users can download the Friday app to receive the Visa card, and immediately access their earned pay without transfer fees by connecting direct deposit to Friday in a single tap.
Darren said enabling easy and instant access to earned pay is vital for the financial wellness of hourly and gig economy workers.
“A lot of working Americans are living paycheck to paycheck, especially hourly workers,” said Darren. “Their income is often unstable and unpredictable, so it’s really easy to run into an overdraft fee situation or face late fees.
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By The PaymentsJournal PodcastTimes of rampant high inflation, such as that we are living in now, affect consumers and businesses in various ways. But one segment that is typically most adversely affected by inflation are workers who are paid an hourly wage. How can earned wage access make an impact?
As inflation forces difficult spending and budgeting decisions in households across the country, this demographic is among the hardest hit. One study conducted in July found that about half of hourly workers did not have any emergency savings at all, and nearly 80% had less than $500 tucked away. Only a small percentage of workers have seen their wages outpace inflation, according to research.
This is why it is critical for employees to have on-demand pay access in order to better manage their cash flow. And it’s also important for employers to offer this service, which plays a large role in employee retention and satisfaction. To learn more about earned wage access, PaymentsJournal sat with Darren Cho, VP of Product at DailyPay, and Steve Murphy, Director of Mercator Advisory Group’s Commercial and Enterprise Payments Advisory Service.
PaymentsJournalWhy Earned Wage Access Is Critical for Employees and BusinessesPaymentsJournal Why Earned Wage Access Is Critical for Employees and BusinessesPaymentsJournaljQuery(document).ready(function ($){var settings_ap26174883 = { design_skin: "skin-wave" ,autoplay: "off",disable_volume:"default" ,loop:"off" ,cue: "on" ,embedded: "off" ,preload_method:"metadata" ,design_animateplaypause:"off" ,skinwave_dynamicwaves:"off" ,skinwave_enableSpectrum:"off" ,skinwave_enableReflect:"on",settings_backup_type:"full",playfrom:"default",soundcloud_apikey:"" ,skinwave_comments_enable:"off",settings_php_handler:window.ajaxurl,skinwave_wave_mode:"canvas",pcm_data_try_to_generate: "on","pcm_notice": "off","notice_no_media": "on",design_color_bg: "111111",design_color_highlight: "ef6b13",skinwave_wave_mode_canvas_waves_number: "3",skinwave_wave_mode_canvas_waves_padding: "1",skinwave_wave_mode_canvas_reflection_size: "0.25",skinwave_comments_playerid:"26174883",php_retriever:"https://www.paymentsjournal.com/wp-content/plugins/dzs-zoomsounds/soundcloudretriever.php" }; try{ dzsap_init(".ap_idx_388558_25",settings_ap26174883); }catch(err){ console.warn("cannot init player", err); } });
DailyPay partners with employers to enable employees to instantly transfer money between pay periods that they have earned to any bank account for a small fee, with 100% of their net pay earned up to that point available. Most of the employers it partners with pay a large segment of their workers on an hourly basis. The firm also recently created a Digital Wallet called Friday, which comes with GPR Visa card and companion mobile app. Users can download the Friday app to receive the Visa card, and immediately access their earned pay without transfer fees by connecting direct deposit to Friday in a single tap.
Darren said enabling easy and instant access to earned pay is vital for the financial wellness of hourly and gig economy workers.
“A lot of working Americans are living paycheck to paycheck, especially hourly workers,” said Darren. “Their income is often unstable and unpredictable, so it’s really easy to run into an overdraft fee situation or face late fees.