Latest news with #EarnedWageAccess
News18
06-08-2025
- Business
- News18
Emerald Finances EMERALD EWA App Goes Live on Google Play Store
PNNMumbai (Maharashtra) [India], August 6: Emerald Finance Limited (BSE: EMERALD), is a dynamic company offering a spectrum of financial products and services including its flagship Earned Wage Access (EWA) in India, has announced the official launch of its employee-centric mobile application, 'EMERALD EWA', now available on the Google Play accessible to employees of companies registered with Emerald, the EMERALD EWA app represents a major step forward in digitizing and streamlining access to earned salaries. The launch reinforces Emerald's commitment to empowering the modern workforce with responsible, tech-enabled financial solutions that address short-term liquidity needs–instantly and app is powered by Emerald's proprietary, API-driven platform that integrates seamlessly with employer payroll systems and time-tracking software. This real-time integration enables employees to access up to 40% of their earned salary–at any time during the pay cycle–through a fully automated system. The repayment is deducted directly from their salary on payday, ensuring zero delinquencies and nil NPAs since company generates revenue through a nominal processing fee of 1.5% to 2% per transaction. This structure has consistently yielded an internal rate of return of around 24% annually, supported by high operational efficiency and a robust risk-mitigation on the EWA Program Mr. Sanjay Aggarwal, Managing Director of Emerald Finance Limited said, 'We are proud to launch the EMERALD EWA app, which marks a major milestone in our digital transformation journey. This platform is designed to empower employees of our partner corporates with instant, flexible access to their earned wages–eliminating dependency on high-cost credit while promoting financial a business perspective, the app not only enhances user engagement and service delivery but also strengthens our recurring revenue model through higher transaction volumes and deeper client integration. As we continue to scale, this mobile-first approach will serve as the foundation for rolling out additional salary-linked financial products such as personal loans, gift vouchers, and invoice discounting–unlocking new growth believe this launch is a strong step toward positioning Emerald Finance as one of the leaders in India's evolving earned wage access landscape and a trusted financial partner for the country's workforce."(ADVERTORIAL DISCLAIMER: The above press release has been provided by PNN. ANI will not be responsible in any way for the content of the same)
Business Recorder
05-08-2025
- Business
- Business Recorder
ABHI, PayPeople collaborate for EWA
KARACHI: In a major move to enhance employee financial well-being, ABHI has partnered with PayPeople to provide Earned Wage Access (EWA), enabling employees to access their earned wages instantly. This collaboration merges PayPeople's reach with ABHI's expertise in financial wellness, enabling organizations to provide their employees with instant access to their earned wages through Earned Wage Access (EWA). Through this partnership, employees will gain real-time access to their salaries, enabling them to manage their financial responsibilities with greater ease and reduce financial stress. By empowering individuals with financial flexibility, businesses can promote a more engaged, productive, and satisfied workforce. On this development, Rayaan Sayeed, Head of Sales of ABHI, said that this collaboration will bring to businesses and their workforce. 'Together, we are simplifying access to financial wellness tools and enabling employees to manage their financial needs more effectively. By leveraging PayPeople's extensive reach and ABHI's expertise in financial services, this partnership is set to create a positive impact on employee productivity and satisfaction,' he added. For employers, this partnership offers streamlined payroll operations and the ability to actively support their teams in achieving financial stability. Rayaan further added, 'At ABHI, we are committed to driving workplace innovation by providing solutions that create lasting value for both organisations and their employees.' This partnership underscores ABHI's dedication to delivering accessible and impactful financial solutions, empowering businesses to prioritize their workforce's financial well-being and contribute to amore resilient, future-ready workplace. Copyright Business Recorder, 2025
Yahoo
24-07-2025
- Business
- Yahoo
EWA providers fight NY over court venue
This story was originally published on Payments Dive. To receive daily news and insights, subscribe to our free daily Payments Dive newsletter. Dive Brief: Earned wage access providers DailyPay and MoneyLion Technologies are battling New York's attorney general over whether complaints the state filed against them should be heard in state or federal court. DailyPay sought to shift the lawsuit filed by Attorney General Letitia James to U.S. District Court on April 25, less than two weeks after the AG's office filed it in state court. MoneyLion, the defendant in a separate New York case with similar claims, followed that same path on May 15. U.S. District Judge John Koeltl in New York City canceled a July 31 court hearing in a related case, in which DailyPay sued the New York AG, according to court filings. The EWA provider sued April 7 seeking a declaratory judgment that its services don't constitute lending and that it hasn't violated the Consumer Financial Protection Act or New York state laws. Dive Insight: The issue of venue has stayed the state's response to DailyPay's complaint. New York has two weeks to respond once the federal court decides where the state's complaints should be heard, according to federal court filings. DailyPay and MoneyLion argued that New York's use of the federal Consumer Financial Protection Act for claims of deceptive and abusive conduct against consumers implicates multiple federal questions. New York-based DailyPay said that the state's 'demand for federally-created remedies that are unavailable under New York law — namely civil penalties and costs under the CFPA — necessarily raises substantial and disputed federal questions.' In its removal filing, lawyers for New York-based MoneyLion said that the New York AG 'appears to be the first agency, federal or state, to bring actions seeking to apply the CFPA to an EWA product. MoneyLion is unaware of any judicial decision addressing the application of the CFPA to EWA products.' However, removing the DailyPay case to federal court 'will deprive New York courts of their proper role in interpreting and applying New York law to ongoing evasion by an emerging, exploitative industry in favor of a federal forum for which Congress expressed no preference,' the Attorney General's office wrote in a June 23 filing seeking to have its DailyPay case returned to New York court. The AG also argued that Congress intended the 2010 consumer financial law to be enforced by attorneys general in state courts. Providers of EWA services, also known as on-demand pay services, have proliferated in recent years to extend services by which workers, mainly hourly employees, can tap their earned pay before a scheduled payday. The New York AG's complaints allege that both companies made 'illegal, high-interest loans' with fees that 'amount to outrageous annual interest rates in the triple digits.' New York alleges that the companies practices 'constitute illegal and deceptive conduct and abusive lending practices' that violate the state's usury laws. In its lawsuit, DailyPay said the state's 'alleged violations all depend on the OAG's flawed assumption that DailyPay's (on-demand pay) product is a loan,' noting that it doesn't require repayment from workers, charges interest or checks workers' creditworthiness. Recommended Reading NY AG alleges two wage access providers made illegal loans Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Recorder
21-07-2025
- Business
- Business Recorder
ABHI partners with Younus Textile Mills to roll out EWA
KARACHI: ABHI has partnered with Younus Textile Mills (YTM) to roll out Earned Wage Access (EWA) for its workforce. This collaboration represents a shared commitment to improving the financial health of employees across Pakistan's textile industry. With ABHI's EWA solution, Younus Textile Mills employees can instantly access a portion of their earned wages before payday, anytime, anywhere, through the ABHI app or SMS, with funds disbursed in under 30 seconds. Muhammad Hassan Tabba, CEO, Younus Textile Mills Limited said that Younus Textile Mills believed that empowered employees drive sustainable growth. Partnering with ABHI is another step in our mission to foster a progressive and supportive workplace culture, he added. Copyright Business Recorder, 2025
Forbes
09-07-2025
- Business
- Forbes
How Earned Wage Access Is Reshaping The Employer-Employee Compact
One of the many ways that business leaders are adapting to inflation and economic uncertainty is by helping employees with innovative payroll tools. Earned wage access programs— powered by fintech startups like Earnin, DailyPay, and One@Work (formerly Even)— are changing how workers get paid. With EWA tools, employees have the option to access their salary before their scheduled payday. These digital solutions embedded directly into payroll and HR platforms offer millions of hourly employees immediate access to wages they have already earned but not yet received. This shift is fundamentally altering the employer-employee financial relationship and reshaping workforce management. The trend is so popular that both Indiana and Maryland passed local EWA regulations in May, joining roughly a dozen states that already had their own EWA-specific regulations. For businesses, EWA is more than a perk. It is a strategic fintech-enabled benefit that drives talent attraction and retention, especially among younger workers who expect real-time control over their pay. As venture capital fuels innovation in on-demand pay and embedded finance, companies must keep pace with these technology-driven trends or risk falling behind. Yet, as EWA grows, questions arise about whether these programs create new debt risks and how regulators nationwide respond. Why EWA Is Taking Off According to a Consumer Financial Protection Bureau report, more than 7 million workers used EWA services in 2022, moving more than $22 billion in transactions. The Federal Reserve Bank of Kansas City found that nearly 80% of consumers aged 18 to 44 expect employers to offer such pay flexibility. The appeal is clear: EWA provides liquidity to workers caught between paychecks without pushing them toward costly payday loans that trap borrowers in debt cycles. For employers, these fintech-enabled solutions provide more than convenience. Integrated via APIs with payroll and financial wellness platforms, EWA reduces employee stress and turnover. Faster wage access helps workers cover expenses promptly and fosters a more stable and productive workforce, delivering measurable return on investment for businesses. States Split On How To Regulate EWA Rapid fintech innovation in EWA has outpaced regulators, producing a patchwork of state laws with differing views on whether these programs are loans. States like Arizona and Montana have issued official opinions stating that fully non-recourse, no-interest EWA products are not loans. These products simply accelerate payment of wages already earned, with providers taking on the risk if repayment fails and without engaging in debt collection or credit reporting. But the picture changes when providers charge fees. If an EWA product includes fees, especially those resembling finance charges or interest, it risks being reclassified as a loan under state laws. In that scenario, providers almost certainly must obtain licenses and comply with lending regulations, including interest rate caps and consumer protection mandates. Connecticut's SB 1396, effective October 1, 2025, reflects this approach by classifying fee-based EWA as small loans subject to licensing, fee caps and disclosure requirements. California's 2024 regulations similarly treat these transactions as loans subject to disclosure and consumer protections and mandates annual reporting and examinations. Other states including Nevada, Missouri, Kansas, Wisconsin, South Carolina, Arkansas and Utah have enacted comparable laws mandating licensing, surety bonds, no-cost wage access options, transparent fee and tipping disclosures, bans on interest or late fees and prohibitions on credit score use or debt collection. Wage Laws And The Early Pay Puzzle EWA programs must comply with state wage and hour laws that govern when and how employees must be paid. These laws protect workers by restricting unauthorized wage deductions and requiring timely, full payment of wages. In employer-funded programs, where employers advance wages early, wage laws like California's require signed employee consent for wage assignments and limit deductions to 50% of wages. Employers must ensure wage advances and deductions comply with these rules to avoid penalties. Third-party funded programs advance funds independently and recover costs through employee-paid fees or tips. These arrangements generally do not trigger wage deduction laws but may face other regulatory scrutiny (e.g., consumer credit regulations like the Truth in Lending Act, state payday lending laws and money transmitter licensing requirements). Fees charged by some EWA providers can also raise legal concerns. When fees are deducted directly from employee pay or charged for wage access, regulators may view them as unlawful wage deductions or obstacles to timely payment, increasing scrutiny and risk. U.S. Regulatory Challenges On The Horizon Several court cases across the nation are illustrating the risks and regulatory challenges facing EWA providers. This year, the New York Attorney General Letitia James filed a lawsuit against MoneyLion and DailyPay, accusing them of disguising predatory payday lending as EWA. The suit alleges excessive fees resulting in high annual percentage rates, deceptive tipping practices and misleading consumers about the voluntary nature of fees. This high-profile case signals increasing enforcement risk, particularly in states with stringent lending laws. At the federal level, the regulatory environment for EWA companies remains unsettled. While the CFPB's 2020 advisory opinion recognized EWA as a non-credit product, a 2024 proposed interpretive rule and a 2025 advisory opinion controversially classified it as credit, creating widespread uncertainty. The CFPB's recent decision to rescind the 2025 advisory opinion is seen as a positive step, yet federal oversight continues to evolve. The Regulatory Stakes Of Securitizing Earned Wages DailyPay's recent move to securitize earned wage receivables marks a key milestone in the fintech-driven earned wage access market. Securitization means the company pools earned wage receivables and converts them into asset-backed securities sold to investors. This process provides DailyPay with immediate capital to fund more advances and scale its operations. This innovative financing approach reflects growing investor confidence in earned wages as a reliable asset class, enabling scalable growth for on-demand pay solutions. However, as securitization of earned wages remains a relatively new practice, it raises important questions about consumer protection, transparency, and regulatory oversight. Regulators will need to carefully ensure that employee rights are protected, disclosures remain clear, and the management of these receivables meets rigorous standards. At the same time, fintech providers like DailyPay must implement robust risk management to address operational, legal, and reputational risks inherent in such complex capital structures. The evolving balance between innovation and regulation will be critical in shaping the future acceptance and sustainable growth of earned wage access financing models. How Companies Can Manage EWA Risks Employers must look beyond regulatory compliance to consider the long-term financial health of their workforce. While EWA provides short-term relief from cash flow challenges, fees and tipping practices risk creating debt-like cycles if not carefully managed. Consumer advocates and regulators remain concerned about predatory practices such as default tipping or hidden fees that could undermine EWA's promise as a financial lifeline. Best practices include providing clear and upfront disclosures about fees, voluntary tips and repayment terms. Employers should offer no-cost wage access options and monitor employee outcomes to identify potential overuse or financial stress. Integrating EWA within broader financial wellness initiatives promotes greater long-term stability. These strategies reduce regulatory and reputational risk while strengthening the employer-employee compact. EWA is more than a fintech innovation. It reshapes how workers access and manage their earned income. When designed responsibly, EWA alleviates financial anxiety for millions of workers and fosters healthier workplace relationships. However, if providers and employers fail to navigate the complex regulatory landscape and manage risks effectively, EWA risks becoming another costly form of credit disguised as convenience.
