“I think the key thing with earned wage access versus historical products that were paycheck advances or payday loans is the lending is done only against wages that are earned, not against the paycheck overall.”

In episode #125 of Mission to Grow, the Asure podcast that serves as small business owners’ guide to cash, compliance, and the War for Talent, Shirish Lal, Co-Founder and COO of Grit Financial Inc., a company that offers innovative card payment and financial wellness solutions, sits down with host Mike Vannoy to discuss the transformative shift from traditional payday loans to on-demand pay models. They explore how digital advancements have led to new, cost-effective solutions that empower employees to access their earned wages without stigma or significant fees. Shirish discusses the profound benefits for employers, such as improved recruitment, retention, and productivity, driven by offering financial wellness tools.

• Evolution from Payday Loans to Digital Earned Wage Access: Employees once reliant on high-interest payday loans now benefit from digital earned wage access with low fees and reduced friction.
• Merchant-Funded Access: The innovative model relies on merchant fees from debit card transactions, allowing services to be offered at no cost to both employees and employers.
• Employer-Centric Benefits: Companies that offer earned wage access see stronger recruitment appeal and improved retention, as employees value immediate access to their earnings.
• Financial Well-Being and Productivity: Enhanced financial wellness reduces stress, giving employees more focus at work and improving overall productivity.
• Reduced Absenteeism: Access to earned wages helps employees manage unexpected expenses promptly, leading to fewer absences.
• Increased Employee Engagement: When financial worries are minimized, employees show greater involvement and commitment to their work.
• Support for Lower-Income Workers: This model particularly benefits those in lower-income brackets who are most affected by financial instability.

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