Given the choice, most Americans would opt for more frequent pay through products like Earned Wage Access.
WASHINGTON, D.C. – The Financial Technology Association (FTA), a trade association representing fintech industry leaders, today released new survey data showing that the majority of American workers believe the traditional monthly or biweekly pay cycle is outdated and prefer to access their wages as they earn them. The survey showed strong interest in no-cost services like Earned Wage Access, in which workers tap into their already-earned wages to meet routine or emergency needs.
“Our payroll cycle is broken, and getting paid once or twice a month doesn’t work for most Americans,” said Penny Lee, President and Chief Executive Officer of the Financial Technology Association. “Earned wage access appeals to workers by letting them tap into wages they have already earned to meet their needs, budget responsibly, and reduce financial stress.”
Conducted by OnePoll on behalf of the Financial Technology Association, the survey found that more than seven in 10 workers think the American work setup is stuck in the 20th century. Specifically, 67% of respondents believe that the traditional pay period of once or twice a month is outdated. If given the choice, employed Americans are more likely to opt for more frequent pay than a more flexible work schedule (50% vs 44%).
The survey also found that:
-
- Three in five (62%) respondents revealed that their current pay cycle doesn’t fit their current financial situation.
- More than half of respondents (56%) “always” or “often” stretch their income between pay periods, and the average worker runs out of funds just 12 days after receiving their paycheck.
- Ideally, workers would want to get paid weekly (64%) or daily (19%) to suit their current financial situation.
- The vast majority (74%) agree that a job is more appealing if they’re able to access their wages sooner.
Earned Wage Access (EWA) is a non-credit product that helps workers budget responsibly. Unlike other short-term liquidity products, EWA lets workers tap into their already-earned wages with no interest, no mandatory fees, and no impact on their credit scores. Studies show that workers value having access to their own wages over other options like payday loans or high-cost credit. The Financial Technology Association has endorsed legislation at the state and federal levels that appropriately defines EWA as a non-credit product and establishes a regulatory and disclosure framework. To learn more, read Earned Wage Access Explained and Just the Facts.
To read the full survey results, click here. This random double-opt-in survey of 2,000 employed Americans was commissioned by The Financial Technology Association between February 23 and February 29, 2024. It was conducted by market research company OnePoll.
ABOUT US
The Financial Technology Association (FTA) is a Washington, DC-based trade association representing industry leaders shaping the future of finance. We champion the power of technology-centered financial services and advocate for the modernization of financial regulation to support inclusion and responsible innovation.