Earned Wage Access: A Case of Dailypay

Abstract

DailyPay is a fintech platform that enables businesses to offer earned wage access (EWA), allowing employees to receive their pay daily or weekly instead of waiting for monthly paychecks. This helps workers manage financial emergencies and avoid high-interest payday loans, as they can only access wages they've already earned. DailyPay also provides financial planning tools and other services. However, instant access often comes with transaction fees, which can reduce overall earnings. Additionally, frequent early withdrawals may encourage poor spending habits and undermine financial management, raising concerns about the long-term impact of EWA platforms on employee financial wellness.