A New Kind of Payday Loan
The California Department of Financial Protection and Innovation (DFPI) signed memorandums of understanding (MOUs) with five earned wage access companies, the department reports.
The companies provide early access to consumer paychecks by way of an advance on expected pay. Companies such as Earnin and Even are two of the five players in this space. The other three involved in the California MOUs are Brigit, Payactiv, and Branch.
These companies use access to data on an individual’s pay to provide access to money ahead of the formal payday. The transaction…