Earned Waged Access: A Financial Wellness Benefit

In a revealing conversation, Samara Jaffe sat down with Michele Geile, Enterprise Sales Manager at Payactive, to discuss how a pioneering financial wellness program is changing the lives of workers across the United States. The topic of discussion was Earned Wage Access, a program conceived by Payactive’s CEO twelve years ago after he noticed a troubling scene: hard-working employees waiting in line at payday loan centers, desperate for cash before their next paycheck.

The solution he devised, Earned Wage Access, now allows employees to tap into earned wages ahead of their scheduled paychecks, offering much-needed liquidity for everyday needs. According to data shared by Geile, users predominantly allocate these funds for essential expenses—groceries, gas, and other household necessities, with the average transaction around $85. This insight sheds light on the program’s role in providing a financial lifeline between pay periods.

While Earned Wage Access primarily caters to hourly workers, it’s not exclusive to them. Salaried employees also find value in the program, especially those who encounter sudden cash flow dilemmas. Currently, Payactive’s reach is mainly within the U.S., although it has started to touch bases internationally.

The arrival of the pandemic saw a surge in demand for Earned Wage Access, especially among healthcare workers who were on the front lines of the crisis. This increase underscores the program’s importance and effectiveness in offering immediate financial relief under extraordinary circumstances.

Through her dialogue with Geile, Jaffe highlighted the transformative impact of Payactive’s Earned Wage Access, not just as a financial tool but as a significant enhancer of employee wellbeing and security.

Check out more newsworthy conversations from The Desk live at Transform 2024.