“The early wage access industry has emerged because so many Americans aren’t paid enough, and they aren’t paid quickly enough. There’s frequently a lag of several days between when employees complete their work and when they get paid, making many workers reach for early pay apps.
The US still largely lacks the ability to make instant, real-time payments between bank accounts — a technology that’s widely available in many other countries — which means it can take longer for workers to get paid. Slow bank payments “have very significant wealth effects for low-wage workers,” said Elena Botella, author of Delinquent: Inside America’s Debt Machine. Fintech companies have stepped in to fill that void with early wage apps, offering workers faster access to their earnings for steep fees.”