Earned wages access (EWA) financial technology (fintech) solutions are helping consumers make payments in real-time for services, such as electricity and telecommunications, while also providing employees with access to their wages to respond to persistent cost-of-living increases by enabling them to access a portion of their earned wages ahead of the payment date, says fintech company Paymenow.
“With the rise of on-demand services, people expect to be able to access the goods and services they pay for immediately. However, with many employees still typically receiving their salaries monthly, this leads to a disconnect between how people spend their money and how they receive it,” says Paymenow CEO Deon Nobrega.
EWA helps to address this disconnect by empowering people to move away from predatory payday lenders and expensive short-term loans. It also promotes financial inclusion and economic empowerment, particularly for lower-income earners, the company says.
“EWA mitigates stress arising from monthly cash-flow issues, encourages responsible financial behaviour, including saving, and enhances financial literacy. An effective EWA system also removes human resources burdens, as well as emotional subjectivity with respect to salary advances by using technology to automate the process,” Nobrega notes.
A focused EWA service that remains agnostic to the greater financial ecosystem and empowers users to benefit from the best service offerings available to them is necessary, he adds.
“Times are tough and businesses need to relook at how they can make their employees feel valued. EWA is a solution that helps to attract and retain talent and enhances the employee’s financial situation by helping them to stretch what they earn that much further,” says Nobrega.
“With the rising cost of living, the benefits of EWA to employees are increasing, and so too is the sense that employers providing access to EWA genuinely value their employees. It is a compelling example of innovative technology being deployed for societal, business and individual benefit,” says Paymenow chief commercial officer Bryan Habana.