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How to Pay for Early Access to Your Paycheck Because Who Wants to Wait?
Millions of American workers are just too impatient to wait for their paychecks, so they’re willing to fork over some cash for the privilege of getting their money early. In some cases, it can come with a steep price, but hey, who cares about that when you need your cash now?
Earned Wage Access Has Gotten More Popular (Because Duh!)
Earned wage access goes by various names: daily pay, instant pay, accrued wage access and on-demand pay. It’s like the cool kid at school who has multiple nicknames because everyone wants a piece of them.
The B2B model uses employers’ payroll and time-sheet records to track the users’ accrued earnings. When payday arrives, the employee receives the portion of pay that hasn’t been tapped early. Third-party apps are similar but instead issue funds based on estimated or historical earnings and then automatically debit a user’s bank account on payday.
‘It’s Another Version of Payday Loans,’ But Like Way Cooler
Big companies such as Dollar Tree, Kroger, Hilton and McDonald’s now also offer employees early access to paychecks. So basically if you work at any major company that doesn’t offer this service yet – find another job ASAP!
We as human beings incur expenses every day,” said Thad Peterson,
strategic advisor at Datos Insights.
“But we’re only paid on a periodic basis.
That’s a massive inconsistency.”
Fees Can Add Up For Frequent Users (But Who Cares When You Need Cash Now?)
Fees can add up particularly if you frequently access your paycheck early but let’s be honest – what’s more important? Your financial health or getting those new shoes before anyone else?
Some Models May Be ‘Closer To An ATM,’ Except They Charge You More Money
- “We feel we are closer
to an ATM,” Shah said.
the EWA industry doesn’t publicly share
of paid transactions relative
to those that are free — “but I suspect it’s
that are incurring a charge,
- If someone signs up in an emergency,
they might not be able
to wait and would want to get the money instantly,” she said.
“That would typically cost a fee.”