Earned wage access

Andrew Bahl:

Gov. Tony Evers in March signed into law a bill creating some oversight for platforms like DailyPay, MoneyLion or Payactiv in Wisconsin, planting the state’s flag on how to handle a rapidly growing industry making inroads across the country.

Earned wage access platforms effectively allow workers to tap into wages they already earned before their next scheduled paycheck. Sometimes this option is offered through an employer and, in other cases, people will use an app marketed directly to consumers.

Proponents of earned wage access, or EWA, have argued it is a tool that helps adapt the byzantine world of payroll to the lives of modern workers, effectively allowing people to get their money sooner. 

There is some evidence that people who use EWA platforms are less likely to rely on payday loans and similar products.