Latest news with #EarnedWageAccess
Forbes
4 days ago
- Business
- Forbes
How Earned Wage Access Is Reshaping The Employer-Employee Compact
One of the many ways that business leaders are adapting to inflation and economic uncertainty is by helping employees with innovative payroll tools. Earned wage access programs— powered by fintech startups like Earnin, DailyPay, and One@Work (formerly Even)— are changing how workers get paid. With EWA tools, employees have the option to access their salary before their scheduled payday. These digital solutions embedded directly into payroll and HR platforms offer millions of hourly employees immediate access to wages they have already earned but not yet received. This shift is fundamentally altering the employer-employee financial relationship and reshaping workforce management. The trend is so popular that both Indiana and Maryland passed local EWA regulations in May, joining roughly a dozen states that already had their own EWA-specific regulations. For businesses, EWA is more than a perk. It is a strategic fintech-enabled benefit that drives talent attraction and retention, especially among younger workers who expect real-time control over their pay. As venture capital fuels innovation in on-demand pay and embedded finance, companies must keep pace with these technology-driven trends or risk falling behind. Yet, as EWA grows, questions arise about whether these programs create new debt risks and how regulators nationwide respond. Why EWA Is Taking Off According to a Consumer Financial Protection Bureau report, more than 7 million workers used EWA services in 2022, moving more than $22 billion in transactions. The Federal Reserve Bank of Kansas City found that nearly 80% of consumers aged 18 to 44 expect employers to offer such pay flexibility. The appeal is clear: EWA provides liquidity to workers caught between paychecks without pushing them toward costly payday loans that trap borrowers in debt cycles. For employers, these fintech-enabled solutions provide more than convenience. Integrated via APIs with payroll and financial wellness platforms, EWA reduces employee stress and turnover. Faster wage access helps workers cover expenses promptly and fosters a more stable and productive workforce, delivering measurable return on investment for businesses. States Split On How To Regulate EWA Rapid fintech innovation in EWA has outpaced regulators, producing a patchwork of state laws with differing views on whether these programs are loans. States like Arizona and Montana have issued official opinions stating that fully non-recourse, no-interest EWA products are not loans. These products simply accelerate payment of wages already earned, with providers taking on the risk if repayment fails and without engaging in debt collection or credit reporting. But the picture changes when providers charge fees. If an EWA product includes fees, especially those resembling finance charges or interest, it risks being reclassified as a loan under state laws. In that scenario, providers almost certainly must obtain licenses and comply with lending regulations, including interest rate caps and consumer protection mandates. Connecticut's SB 1396, effective October 1, 2025, reflects this approach by classifying fee-based EWA as small loans subject to licensing, fee caps and disclosure requirements. California's 2024 regulations similarly treat these transactions as loans subject to disclosure and consumer protections and mandates annual reporting and examinations. Other states including Nevada, Missouri, Kansas, Wisconsin, South Carolina, Arkansas and Utah have enacted comparable laws mandating licensing, surety bonds, no-cost wage access options, transparent fee and tipping disclosures, bans on interest or late fees and prohibitions on credit score use or debt collection. Wage Laws And The Early Pay Puzzle EWA programs must comply with state wage and hour laws that govern when and how employees must be paid. These laws protect workers by restricting unauthorized wage deductions and requiring timely, full payment of wages. In employer-funded programs, where employers advance wages early, wage laws like California's require signed employee consent for wage assignments and limit deductions to 50% of wages. Employers must ensure wage advances and deductions comply with these rules to avoid penalties. Third-party funded programs advance funds independently and recover costs through employee-paid fees or tips. These arrangements generally do not trigger wage deduction laws but may face other regulatory scrutiny (e.g., consumer credit regulations like the Truth in Lending Act, state payday lending laws and money transmitter licensing requirements). Fees charged by some EWA providers can also raise legal concerns. When fees are deducted directly from employee pay or charged for wage access, regulators may view them as unlawful wage deductions or obstacles to timely payment, increasing scrutiny and risk. U.S. Regulatory Challenges On The Horizon Several court cases across the nation are illustrating the risks and regulatory challenges facing EWA providers. This year, the New York Attorney General Letitia James filed a lawsuit against MoneyLion and DailyPay, accusing them of disguising predatory payday lending as EWA. The suit alleges excessive fees resulting in high annual percentage rates, deceptive tipping practices and misleading consumers about the voluntary nature of fees. This high-profile case signals increasing enforcement risk, particularly in states with stringent lending laws. At the federal level, the regulatory environment for EWA companies remains unsettled. While the CFPB's 2020 advisory opinion recognized EWA as a non-credit product, a 2024 proposed interpretive rule and a 2025 advisory opinion controversially classified it as credit, creating widespread uncertainty. The CFPB's recent decision to rescind the 2025 advisory opinion is seen as a positive step, yet federal oversight continues to evolve. The Regulatory Stakes Of Securitizing Earned Wages DailyPay's recent move to securitize earned wage receivables marks a key milestone in the fintech-driven earned wage access market. Securitization means the company pools earned wage receivables and converts them into asset-backed securities sold to investors. This process provides DailyPay with immediate capital to fund more advances and scale its operations. This innovative financing approach reflects growing investor confidence in earned wages as a reliable asset class, enabling scalable growth for on-demand pay solutions. However, as securitization of earned wages remains a relatively new practice, it raises important questions about consumer protection, transparency, and regulatory oversight. Regulators will need to carefully ensure that employee rights are protected, disclosures remain clear, and the management of these receivables meets rigorous standards. At the same time, fintech providers like DailyPay must implement robust risk management to address operational, legal, and reputational risks inherent in such complex capital structures. The evolving balance between innovation and regulation will be critical in shaping the future acceptance and sustainable growth of earned wage access financing models. How Companies Can Manage EWA Risks Employers must look beyond regulatory compliance to consider the long-term financial health of their workforce. While EWA provides short-term relief from cash flow challenges, fees and tipping practices risk creating debt-like cycles if not carefully managed. Consumer advocates and regulators remain concerned about predatory practices such as default tipping or hidden fees that could undermine EWA's promise as a financial lifeline. Best practices include providing clear and upfront disclosures about fees, voluntary tips and repayment terms. Employers should offer no-cost wage access options and monitor employee outcomes to identify potential overuse or financial stress. Integrating EWA within broader financial wellness initiatives promotes greater long-term stability. These strategies reduce regulatory and reputational risk while strengthening the employer-employee compact. EWA is more than a fintech innovation. It reshapes how workers access and manage their earned income. When designed responsibly, EWA alleviates financial anxiety for millions of workers and fosters healthier workplace relationships. However, if providers and employers fail to navigate the complex regulatory landscape and manage risks effectively, EWA risks becoming another costly form of credit disguised as convenience.
Borneo Post
31-05-2025
- Business
- Borneo Post
Shoraka Kenyalang, Kopela launch ‘Bayar Jak' to boost financial inclusion in Sarawak
Handout photo shows the representatives of SKSB and Kopela at the signing ceremony held in Bintulu. KUCHING (May 31): Shoraka Kenyalang Sdn Bhd (SKSB) has collaborated with Koperasi Pelabuhan Bintulu Berhad (Kopela) in launching 'Bayar Jak', an all-in-one Islamic fintech liquidity platform. This strategic partnership marks the rollout of Earned Wage Access (EWA) services to Kopela cooperative members, empowering employees with real-time access to a portion of their earned wages, any time before payday. 'Designed to promote financial inclusion and reduce dependence on high-interest loans or unregulated lenders, Bayar Jak integrates seamlessly with employer payroll systems. 'Through its secure digital platform, employees can view and withdraw accrued earnings as needed, offering greater cash flow flexibility, particularly in times of financial need,' said SKSB in a statement. It added that Bayar Jak would continue to expand its suite of syariah-compliant digital financial services. 'Planned offerings include digital invoice financing solutions for small and medium enterprises (SMEs) and tailored private credit facilities for civil servants, supporting the broader objectives of the Sarawak Digital Economy Blueprint 2030.' Bayar Jak, a strategic partnership between SKSB, a subsidiary of Shoraka Group and Kopela, the cooperative arm of Bintulu Port Holdings Berhad (BPHB), reflects a mutual commitment to advancing financial wellness and inclusion across Sarawak. Bayar Jak is operated by SKSB, a member of the Sarawak Chamber of Commerce and Industry (SCCI). It is aimed at empowering Sarawakians, local businesses and SMEs through syariah-compliant, accessible financial solutions that support economic resilience. As a cooperative associated with Bintulu Port in Sarawak, Kopela focuses on member welfare, economic participation and community development. Most of its members are employees of BPHB. Bayar Jak's EWA service also supports Sarawak's broader agenda to promote financial inclusion and well-being, offering a safer, more sustainable alternative to predatory lending practices. For more information about Bayar Jak, go to Bayar Jak Islamic fintech liquidity platform Kopela Shoraka Kenyalang
Yahoo
30-05-2025
- Business
- Yahoo
XTM Files Q1 2025 Interim Financial Results
Revenue Up 51% Over Prior Year Quarter, Net Comprehensive Loss Decreases 40% Over Prior Year Quarter TORONTO, May 30, 2025--(BUSINESS WIRE)--XTM Inc. ("XTM" or the "Company") (QB: XTMIF / CSE: PAID / FSE: 7XT), a fintech innovator in automated tip calculations, instant payouts for employees and gig workers and a provider of Earned Wage Access ("EWA") through its AnyDay™ platform, today announced it has filed its interim financial statements and management's discussion and analysis (MD&A) for the quarter ended March 31, 2025 (the "Required Filings"). As part of XTM's continued strategic realignment and focus on profitability, the Company's previously announced transaction regarding its processing operations with Pateno Payments Inc. (a subsidiary of Digital Commerce Group) is progressing with only final US Banking operation approvals necessary to close. The transaction agreement deadline, originally set to close on May 30, 2025, is being extended to meet the various US Bank's departmental schedules. The partnership and ongoing support of Digital Commerce Bank positions XTM to rapidly scale its SaaS business with robust financial and infrastructure backing. Q1 2025 Financial and Operational Highlights Revenue Growth: Revenue was $2.7 million for the quarter, increasing 51% from the prior year quarter revenue of $1.8 million. Revenue Source: Less than 40% of the company's revenue in Q1 was derived from Interchange as part of the company's strategic goal to diversify revenue sources, now with the inclusion of Software as a Service (SaaS) revenue Net Loss & Comprehensive Loss: The Company reduced its net loss and comprehensive loss to $3.2 million in Q1 2025 compared to $5.3M in Q1 2024, a decrease of 40%. CAD $13M Credit Facility: On January 1, 2025, XTM signed a CAD $13 million Letter of Credit with Pateno Payments to support growth and cash neutrality, ahead of a planned financing and uplisting to a senior exchange in the second half 2025. Restricted Cash: The decrease in restricted cash of $14.2M includes $2.5M related to the migration of XTM funded EWA programs to client funded programs at QRails and an additional $9.6 million of deposits transferred to KOHO financial, which are expected to be returned by Q3 2025 Subsequent Events – Q1 2025 Sales Team Expansion & Early Wins:XTM is pleased to announce the expansion of its sales team, welcoming a new representative who successfully closed two new deals within their first two weeks at the Company. Consistent with XTM's hiring strategy, the new team member brings direct industry experience, having been an active AnyDay user within the hospitality sector—providing firsthand insight into the platform's value and driving authentic client engagement. Strong Year-to-Date Growth:As of the latest reporting period, XTM has signed 149 new client locations ("doors") for its Anyday wage and gratutity access solution, reflecting accelerating adoption and strong market demand. Filing Details The audited consolidated financial statements and MD&A for the year ended December 31, 2024, are available on the Company's profile at About XTM Inc. XTM Inc. is a global fintech innovator with offices in Miami, Toronto, Denver, and London. Through its AnyDay™ platform and its fully owned subsidiary, QRails, XTM delivers instant pay and Earned Wage Access solutions to the hospitality, personal care, and staffing sectors. XTM supports some of North America's leading brands including Earls, Marriott Hotels, Maple Leaf Sports & Entertainment, Cactus Club, and Live Nation. QRails is a cloud-based, API-driven issuer-processor enabling payroll providers, financial institutions, and fintechs to deliver modern digital payment solutions. QRails is SAP-certified and PCI DSS and SOC compliant. Learn more at and Forward-Looking Statements This press release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian securities laws. These statements involve known and unknown risks, uncertainties, and assumptions, and may include words such as "expects," "intends," "anticipates," "plans," "believes," and similar expressions. Actual results could differ materially from those projected due to various risks and factors beyond the Company's control. The CSE has neither approved nor disapproved the contents of this press release and accepts no responsibility for its adequacy or accuracy. View source version on Contacts Investor Contact:Jakob Ripshtein Email: finance@ Phone: 416-260-1641 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
30-05-2025
- Business
- Business Wire
XTM Files Q1 2025 Interim Financial Results
TORONTO--(BUSINESS WIRE)--XTM Inc. ('XTM' or the 'Company') (QB: XTMIF / CSE: PAID / FSE: 7XT), a fintech innovator in automated tip calculations, instant payouts for employees and gig workers and a provider of Earned Wage Access ('EWA') through its AnyDay™ platform, today announced it has filed its interim financial statements and management's discussion and analysis (MD&A) for the quarter ended March 31, 2025 (the 'Required Filings'). As part of XTM's continued strategic realignment and focus on profitability, the Company's previously announced transaction regarding its processing operations with Pateno Payments Inc. (a subsidiary of Digital Commerce Group) is progressing with only final US Banking operation approvals necessary to close. The transaction agreement deadline, originally set to close on May 30, 2025, is being extended to meet the various US Bank's departmental schedules. The partnership and ongoing support of Digital Commerce Bank positions XTM to rapidly scale its SaaS business with robust financial and infrastructure backing. Q1 2025 Financial and Operational Highlights Revenue Growth: Revenue was $2.7 million for the quarter, increasing 51% from the prior year quarter revenue of $1.8 million. Revenue Source: Less than 40% of the company's revenue in Q1 was derived from Interchange as part of the company's strategic goal to diversify revenue sources, now with the inclusion of Software as a Service (SaaS) revenue Net Loss & Comprehensive Loss: The Company reduced its net loss and comprehensive loss to $3.2 million in Q1 2025 compared to $5.3M in Q1 2024, a decrease of 40%. CAD $13M Credit Facility: On January 1, 2025, XTM signed a CAD $13 million Letter of Credit with Pateno Payments to support growth and cash neutrality, ahead of a planned financing and uplisting to a senior exchange in the second half 2025. Restricted Cash: The decrease in restricted cash of $14.2M includes $2.5M related to the migration of XTM funded EWA programs to client funded programs at QRails and an additional $9.6 million of deposits transferred to KOHO financial, which are expected to be returned by Q3 2025 Subsequent Events – Q1 2025 Sales Team Expansion & Early Wins: XTM is pleased to announce the expansion of its sales team, welcoming a new representative who successfully closed two new deals within their first two weeks at the Company. Consistent with XTM's hiring strategy, the new team member brings direct industry experience, having been an active AnyDay user within the hospitality sector—providing firsthand insight into the platform's value and driving authentic client engagement. Strong Year-to-Date Growth: As of the latest reporting period, XTM has signed 149 new client locations ('doors') for its Anyday wage and gratutity access solution, reflecting accelerating adoption and strong market demand. Filing Details The audited consolidated financial statements and MD&A for the year ended December 31, 2024, are available on the Company's profile at About XTM Inc. XTM Inc. is a global fintech innovator with offices in Miami, Toronto, Denver, and London. Through its AnyDay™ platform and its fully owned subsidiary, QRails, XTM delivers instant pay and Earned Wage Access solutions to the hospitality, personal care, and staffing sectors. XTM supports some of North America's leading brands including Earls, Marriott Hotels, Maple Leaf Sports & Entertainment, Cactus Club, and Live Nation. QRails is a cloud-based, API-driven issuer-processor enabling payroll providers, financial institutions, and fintechs to deliver modern digital payment solutions. QRails is SAP-certified and PCI DSS and SOC compliant. Learn more at and Forward-Looking Statements This press release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian securities laws. These statements involve known and unknown risks, uncertainties, and assumptions, and may include words such as "expects," "intends," "anticipates," "plans," "believes," and similar expressions. Actual results could differ materially from those projected due to various risks and factors beyond the Company's control. The CSE has neither approved nor disapproved the contents of this press release and accepts no responsibility for its adequacy or accuracy.
The Print
26-05-2025
- Business
- The Print
Emerald Finance Reports 246% YoY Surge in Q4 FY25 Net Profit
Mumbai (Maharashtra) [India], May 24: Emerald Finance Limited (BSE: EMERALD), is a dynamic company offering a spectrum of financial products and services including its flagship Earned Wage Access (EWA) in India, announced its Audited Financial Results for Q4 FY25 and FY25. Q4 FY25 Standalone Financial Highlights – Total Income of Rs 4.60 Cr, YoY growth of 127.45% – EBITDA of Rs 3.60 Cr, YoY growth of 195.44% – Net Profit of Rs 2.16 Cr, YoY growth of 246.21% – Net Profit Margin (%) of 47.03%, YoY growth of 1,613 Bps – EPS of Rs 0.63, YoY growth of 202.42% FY25 Standalone Financial Highlights – Total Income of Rs 13.47 Cr, YoY growth of 81.44% – EBITDA of Rs 10.82 Cr, YoY growth of 113.08% – Net Profit of Rs 6.44 Cr, YoY growth of 114.36% – Net Profit Margin (%) of 47.83%, YoY growth of 735 Bps – EPS of Rs 1.87, YoY growth of 87.16% Q4 FY25 Consolidated Financial Highlights – Total Income of Rs 6.50 Cr, YoY growth of 66.44% – EBITDA of Rs 4.53 Cr, YoY growth of 117.02% – Net Profit of Rs 2.65 Cr, YoY growth of 132.99% – Net Profit Margin (%) of 40.80%, YoY growth of 1,165 Bps – EPS of Rs 0.77, YoY growth of 103.45% FY25 Consolidated Financial Highlights – Total Income of Rs 21.63 Cr, YoY growth of 61.94% – EBITDA of Rs 15.07 Cr, YoY growth of 114.56% – Net Profit of Rs 8.89 Cr, YoY growth of 114.83% – Net Profit Margin (%) of 41.09%, YoY growth of 1,012 Bps – EPS of Rs 2.57, YoY growth of 87.40% Comment on Financial Performance Mr. Sanjay Aggarwal, Managing Director of Emerald Finance Limited said, 'FY25 was a year of strong progress for Emerald Finance, marked by robust financial performance and strategic momentum. The year concluded with a solid Q4, as income grew across interest and fee-based streams, and margins improved on the back of operational efficiency and disciplined cost control. We maintained a Zero NPA throughout the year, underscoring the strength of our credit underwriting and risk management practices. Our EWA platform gained significant traction in Q4, with 62 corporate clients signed during the financial year and onboarded by year-end. This reinforces the increasing relevance of our salary advance solution in today's dynamic workforce environment. We are well-positioned amid India's fintech transformation, driven by rising credit demand, financial inclusion, and digital adoption. Our strategy focuses on retail and MSME lending, digital innovation, and strong partnerships. We aim to scale our EWA platform, expand SME and invoice discounting services, and grow across 200+ cities, targeting 250 corporate partners by March 2026 with our digital-first approach. Backed by experienced leadership and investors, we remain committed to delivering scalable, inclusive financial solutions that meet India's evolving needs.' Q4 FY25 Key Business Highlights of Emerald Finance Limited Fund Raise – Allotted 24 secured, unlisted, unrated, redeemable non-convertible debentures at Rs5,00,000 each, aggregating to Rs1.20 Cr, on a private placement basis. – Allotted 7,65,090 equity shares at Rs131 each (face value Rs10, premium Rs121), increasing fully paid-up equity share capital from Rs33.78 Cr to Rs34.54 Cr. Investors include promoters, Saint Capital Fund (Mauritius), Mr. Rajesh Jain (Founding Partner, KPMG in India & Africa), and Mr. Vishnu Sultania (Advisor to the UN, among India's top 100 CFOs), reinforcing confidence in the company's growth and digital lending strategy. Added New Clients for Early-Wage Access program – Onboarded 20 corporates in Q4 FY25 for Early Wage Access, a salary advance solution that enables employees to access a portion of their earned salary throughout the month, with recovery via salary deduction. (ADVERTORIAL DISCLAIMER: The above press release has been provided by VMPL. ANI will not be responsible in any way for the content of the same) This story is auto-generated from a syndicated feed. ThePrint holds no responsibility for its content.
