Inflation Increases Demand for Earned Wage Access

EWA products can act like payday loans, create cycle of dependence

Andy Spears
2 min readSep 13, 2022
Photo by on Unsplash

The realities of inflation — even as it slows — mean workers want access to their pay as soon as possible. Managing cash flow as costs rise quickly over time means accessing your pay at the earliest possible date.

That’s where earned wage access (EWA) products come into play.

These products allow employees to access a portion of their wages BEFORE payday — sometimes for a fee, often with no interest.

The app-based products mean workers can essentially get paid (at least a little) when they want and can use those early deposits into their bank accounts to manage their overall cash flow.

American Banker reports that fintech companies offering EWA products are moving quickly to capitalize on the “opportunity” created by the current inflationary climate.

Visa, DailyPay and The Bancorp Bank this week launched a reloadable prepaid card that’s tied to an earned wage access (EWA) feature, or a way for employees to access a portion of their salaries earlier than the traditional two-week pay cycle. The prepaid card is being launched as EWA firms report an increase in adoption, creating a race among EWA providers to reach new employers…



Andy Spears

Writer and policy advocate living in Nashville, TN —Public Policy Ph.D. — writes on education policy, consumer affairs, and more . . .