The American Fintech Council (AFC) has released new research highlighting strong public support for earned wage access (EWA), a service allowing workers to receive a portion of their wages before payday. The study, which is part of AFC's Workers for Wage Access initiative, involved a survey of 1,500 U.S. voters and nearly 150,000 public comments submitted to the Consumer Financial Protection Bureau (CFPB).
According to the findings, "8 in 10 U.S. voters support access to EWA." Additionally, "30% of all voters and 50% of union members have accessed their wages early to meet urgent financial needs like rent, groceries, or medical bills." The research indicates that limiting access to EWA could push workers towards high-cost alternatives such as payday loans.
Phil Goldfeder, CEO of the American Fintech Council, emphasized the importance of protecting EWA services: “Responsible Earned wage access helps workers manage everyday expenses, avoid high-cost payday loans, and stay in control of their finances.” He urged lawmakers and regulators to ensure these services remain available.
Further insights reveal that "87% of respondents agreed that losing access to EWA would likely push workers toward harmful alternatives like high-interest credit cards or payday loans," and nearly nine out of ten voters see features like no interest and low fees as essential for EWA services.
The University of Connecticut has also released a study on the negative effects of restricting EWA. Their research shows that Connecticut’s decision in January 2024 to limit EWA has caused financial strain for many workers in the state. A significant number reported turning to credit cards or borrowing from friends due to restricted access.
Ian P. Moloney, SVP and Head of Policy and Regulatory Affairs at AFC, stressed the need for policies reflecting workers' perspectives: “Crafting consumer-focused policy requires listening to people who face the challenges EWA seeks to solve."
AFC continues its mission by advocating for responsible innovation in financial services through initiatives like Workers for Wage Access. More information can be found at fintechcouncil.org/workers-for-wage-access.