Workers Face Cash Gaps While Earned Wage Access Sits Unused

Labor Economy Workers Needing Funds

54%

Percentage of Labor Economy workers who needed money before their wages were available for essential expenses in the last 90 days.

Workers Reporting On-Demand Pay Availability

80%

Percentage of surveyed workers who reported that their employer offers on-demand pay.

Workers Resolving Cash Gaps Effectively

37%

Percentage of Labor Economy workers who said their primary solution for cash gaps resolved the issue without creating more financial pressure.

§ 01 Executive Snapshot

What: Workers are facing cash gaps despite the availability of earned wage access (EWA) solutions.
Who: Labor Economy workers, non-Labor workers, PYMNTS Intelligence, Ingo Payments, WorkWhile.
Why it matters: Understanding the disconnect between the availability of EWA and its actual usage is crucial for financial service providers aiming to address worker cash flow issues.

More than 54% of Labor Economy workers needed money before their wages were available to cover essential expenses in the last 90 days.
Approximately 80% of surveyed workers reported that their employer offers on-demand pay, yet most use it only rarely or never.
Only 37% of Labor Economy workers said their primary solution for cash gaps resolved the problem without creating additional financial pressure.

The study highlights a significant gap between the availability of EWA services and their actual adoption, suggesting that mere access is insufficient for usage.
The report identifies product design, trust, and established financial habits as key barriers to the adoption of earned wage access solutions among workers.

Providers may face diminishing returns in expanding program availability if workers are uncertain about how and when to use EWA services.
The current economic climate, where workers feel secure in their jobs but uncertain about the future, may lead to increased caution regarding the adoption of new financial tools.

Potential risks include regulatory scrutiny around the transparency of EWA products and the financial literacy of workers when it comes to understanding EWA costs.
Competition from traditional financial solutions that are more familiar to workers may hinder the adoption of EWA services.

Monitoring changes in worker sentiment regarding employment stability and economic outlook will be crucial for understanding EWA adoption trends.
Future developments in product design that enhance speed, access, and simplicity for EWA services could signal increased adoption rates.

§ 07

What is earned wage access (EWA)?

Earned wage access (EWA) allows workers to access their earned wages before the traditional payday.

Why are workers not using earned wage access services?

Many workers face barriers such as product design, trust issues, and established financial habits that hinder the adoption of EWA services.

How many Labor Economy workers needed money before their wages were available?

More than 54% of Labor Economy workers needed money before their wages were available to cover essential expenses in the last 90 days.

Who conducted the study on earned wage access usage?

The study was conducted by PYMNTS Intelligence in collaboration with Ingo Payments and WorkWhile.