Impact: An Imperative Shift in Financial Wellness

Definition: To Have an Effect That Is Measurable

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in its short 10-year history,

EWA has had a tremendous impact by increasing the financial resilience of workers, providing employers with valuable recruitment and retention tools, and ushering in new expectations on the timing of pay and the rights of workers.

Today, EWA has solidified as a table stakes employee benefit and critical financial security tool for workers. It is estimated that there were  55.8 million EWA uses totalling $9.5 billion in 2020. Access to already earned wages is a critical lifeline for workers in times of emergencies, and also to pay for their livelihood needs like food, transportation, and rent.

ted x bismark

Waiting to Get Paid is Part of What Makes it so Expensive to Be Poor

“The opposite of poverty is not income, the opposite of poverty is dignity.”

the takeaway

Most economists and financial wellness experts agree that EWA has been highly impactful as a tool for workers to access short-term liquidity from money they have already earned. 

To better understand how workers use EWA, leading providers like Payactiv have partnered with research firms to study user behavior. The data shows that EWA is an effective replacement for payday loans and other predatory products. In fact, there is significant overlap in the pool of users that take out payday loans and those that draw EWA, with over 80% of users who have access to EWA reporting they no longer use payday loans.

but where is it all going?

Studies also reveal that users most often use the money they access through EWA on basic livelihood needs like food, transportation, utilities, and rent. It’s clear that EWA is significantly reducing, and in many cases even eliminating, payday loan usage all together.

EWA has reached a real inflection point and is also driving a fundamental shift around expectations for the timing of pay.

“The ideal man bears the accidents of life with dignity and grace, making the best of circumstances.”

– aristotle

When you empower people to live their life on their financial terms, you are showing them that you value their work and are invested in maximizing their wellbeing.

we're just getting started

Over the last 10 years

  • We have served 3.5 million workers over the last 10 years.
  • We have served over 4,000 businesses.
  • We have helped people save over $1.5 million dollars.

As more and more employers start prioritizing financial wellness for their employees as both an empathetic and strategic business decision, Earned Wage Access has grown in both popularity and accessibility.

Before having Payactiv, I would ask, “can I make this purchase?”​

Dear Diary,

We just got back from Thanksgiving dinner and I saw Uncle Li and Aunt Cho after years. To be honest, I’ve been avoiding them a bit.

After getting laid off last year and going back to working retail, it’s been hard fielding their questions about when I’m going to get out of debt and how much I’m being paid. I know they’re worried about me and Maxine since Maya passed away and we have all the hospital bills to figure out, but it just makes me feel worse.

Last time they found out that I was behind on the payments and our cards were maxed out and they were determined to find me a better job during dinner. Discussing my job prospects in front of everyone – cousins, grandparents and even the dog just added insult to the injury.  

And it just opened an entire can of worms with Jeffrey offering to give me a loan, others sending

Dear Diary,

We just got back from Thanksgiving dinner and I saw Uncle Li and Aunt Cho after years. To be honest, I’ve been avoiding them a bit.

After getting laid off last year and going back to working retail, it’s been hard fielding their questions about when I’m going to get out of debt and how much I’m being paid. I know they’re worried about me and Maxine since Maya passed away and we have all the hospital bills to figure out, but it just makes me feel worse.

Last time they found out that I was behind on the payments and our cards were maxed out and they were determined to find me a better job during dinner. Discussing my job prospects in front of everyone – cousins, grandparents and even the dog just added insult to the injury.  

And it just opened an entire can of worms with Jeffrey offering to give me a loan, others sending me links to local payday lenders, and someone, I think it was Joan, asking me to list out my monthly expenses.

The worst was when someone told me to consider putting my car up as collateral for a loan at a 25% interest rate. I almost threw up.

It was too much. So I was really worried about today. Thankfully, the credit cards are all paid off and the hospital bills are under control again since my work started offering Earned Wage Access. When Aunt Cho asked me for an update, I told her how I took the last few months to take a portion of my paycheck to pay off some of the balance to start avoiding interest while also padding up our savings account to avoid any overdraft fees.

I think I saw her tear up a bit. She didn’t ask me anything after that.

– Zhang

me links to local payday lenders, and someone, I think it was Joan, asking me to list out my monthly expenses.

The worst was when someone told me to consider putting my car up as collateral for a loan at a 25% interest rate. I almost threw up.

It was too much. So I was really worried about today. Thankfully, the credit cards are all paid off and the hospital bills are under control again since my work started offering Earned Wage Access. When Aunt Cho asked me for an update, I told her how I took the last few months to take a portion of my paycheck to pay off some of the balance to start avoiding interest while also padding up our savings account to avoid any overdraft fees.

I think I saw her tear up a bit. She didn’t ask me anything after that.

– Zhang

Explore other sections

Book 5: IMITATION

As Earned Wage Access gains traction, new entrants have joined the industry. It’s no longer about just offering Earned Wage Access, but offering the most accessible and advantageous solution for employees.

Read "Imitation"

Book 7: INSIGHT

Earned Wage Access is about creating a new standard for financial wellness where employees are not only fairly compensated for their work, but given access to that compensation in a way that supports them. It’s akin to a pay raise.

Read "Insight"
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