Employer-Based Loans and Early Pay: Disruption Reaching Scale

Vendors enabling employer-based installment loans and early access to earned wages are poised for growth.

Boston, April 3, 2019 – A large share of employees across the income spectrum are financially insecure, with low levels of savings, timing issues between bill due dates and paydays, and unexpected expenses. The resulting stress harbors costs for employees and their employers alike, such as lower worker productivity and increased absenteeism. But some lenders and solution providers have developed products that employers can use to address these needs.

This report provides an overview of the emerging markets of employer-based installment loans and early access to earned wages in the U.S. and the U.K. It is based on in-depth interviews Aite Group conducted from November 2018 to March 2019 with executives at 13 firms providing employment-based installment loans, early access to wages, or both. These interviews were supplemented by desk research on measures of employee financial wellness, impacts of employee financial stress on the workplace, and financial products and services used by consumers who face unexpected or ill-timed expenses.

This 28-page Impact Report contains 12 figures and four tables. Clients of Aite Group’s Retail Banking & Payments service can download this report, the corresponding charts, and the Executive Impact Deck.

This report mentions BMG Money, Comcast, DailyPay, Earnin’, Employee Loan Solutions, Even, FinFit, FlexWage, Honeybee, Instant Financial, Kashable, Neyber, PayActiv, Salary Finance, and Walmart.

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