EarnIn Debuts Early Pay For Faster Paycheck Access

EarnIn has debuted a product that lets users access their paychecks two days early.

Early Pay, announced by the earned wage access (EWA) provider Tuesday (March 18), lets customers get paid early no matter where they bank.

“In today’s world, it shouldn’t take days for money to get from an employer to an employee’s bank account,” Ram Palaniappan, EarnIn’s founder/CEO, said in a news release. “We created Early Pay to fix that — to give people faster access to their paychecks so they can manage their money on their own terms, not their bank’s schedule.”

According to the release, Early Pay lets users keep their existing banking relationships while accessing their earnings “on their own terms.”

From the EarnIn app, customers can add their info to create a deposit account with the company’s partner bank, update their direct deposit through their payroll, and opt in to Early Pay on the app. The service costs $2.99 per paycheck and can be turned on and off at will.

“After one or two pay cycles, paychecks start fast-tracking into their primary bank account, allowing them to keep their current banking apps and automatic bill pays, while helping to avoid late fees and planning ahead better for any expenditures or financial goals,” the release added.

As PYMNTS wrote last year, EWA can benefit both employers and employees alike, helping businesses boost retention and worker morale.

“Providing instant payroll to help workers overcome financial hardships can strengthen their relationships with employers,” that report said. “This in turn can reduce turnover and lower onboarding and training costs, saving money in the long run.”

For example, trucking companies have begun introducing instant payments to address a projected driver shortage of 160,000 by 2030. This initiative is proving effective in retaining drivers.

A PYMNTS Intelligence study found that 91% of truckers who receive instant payments appreciate their speed and the peace of mind they offer.

“Moreover, nearly 37% of truckers would be willing to pay for this convenience, compared to 29% of general consumers,” PYMNTS wrote. “Beyond speed and peace of mind, 75% of truckers prefer instant payments for their overall convenience.”

And late payments can have damaging financial ramifications, with research showing that 58% of freelance and gig workers believe the current payment infrastructure is insufficient because of high fees, slow payments and currency conversion issues.

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The post EarnIn Debuts Early Pay For Faster Paycheck Access appeared first on PYMNTS.com.