Earned wage access: On-demand salaries

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  Quantumrun Foresight
• November 14, 2022

Insight summary

Earned wage access (EWA) services, providing workers with immediate access to their earned pay, are becoming increasingly popular worldwide. These services, which emerged as a solution to the limitations of traditional payday loans, are rapidly integrating into various company payroll systems, offering a financial lifeline to employees in need. The expansion of EWA is not only reshaping how employees receive their pay but also sparking significant changes in global financial practices and regulatory approaches.

Earned wage access context

Quicker payment methods like EWA allow workers to receive their pay when they want it, as opposed to a schedule decided by their employer. Also known as early payday, this option has seen a surge in global demand as more employees and employers embrace new ways of work. While large enterprises could lease EWA services, small and medium-sized enterprises (SMEs) might depend heavily on it.

Traditionally, SMEs have paid their employees monthly or based on the completion of work. Some companies offer payments via bank transfer, cash, or checks. However, since the COVID-19 pandemic began, numerous processes have changed. Many companies rely on banking services to pay their employees as transactions become more digitized. 

While these services are secure and automated, there remained the problem with funding for those who required EWA. Most workers with financial emergencies often turn to the notoriously abusive payday loan industry. Global projections estimate the payday loan market will reach nearly USD $47 billion by 2030.

In response to this predatory sector, EWA fintechs enable employees to access a portion of their salary before payday through online platforms and apps. In addition, EWA solutions allow companies of all sizes to provide their workers with secure access to finance without jeopardizing their work or money. Employees can conveniently access a portion of their net pay, and employers can easily deduct the wages from their total earnings without tedious processes.

Disruptive impact

Some fintech firms are collaborating with employers to embed EWA into their payroll systems. For example, London-based digital bank Revolut launched the On Demand Pay service in 2021. This feature is popular among small businesses in the US and Europe. Other EWA providers do not operate for employers, instead requesting access to a user’s bank account to assess how much money is sensible to advance. 

Meanwhile, implementation of EWA is increasing in Asia. South-Korea based startup Paywatch raised $5.3 million USD in seed funding to expand its EWA services to Singapore, Indonesia, Malaysia, and the Philippines. According to the company’s CEO, Alex Kim, compared to other EWA solutions, Paywatch has a program where users can access additional financial transactions, including mortgages and vehicle financing. Thus, the company focuses on giving employees with different economic backgrounds access to financial services.

In Malaysia, Paywatch was recognized by the United Nations Capital Development Fund, Bank Negara Malaysia, and MDEC for its financial inclusion efforts. Kim states that while the firm is using EWA as a starting point, they are interested in eventually becoming an HR solution provider that enables flexible employee benefits.

Implications of earned wage access

Wider implications of EWA may include: 

• More developing economies adopting the EWA model to help people with financial emergencies.


• Regulatory clampdowns on EWA services with high-interest rates.


• Fewer debt traps perpetuating a poverty cycle, and fewer people turning to illegal loan providers.  


• Open banking and EWA startups collaborating to develop application programming interfaces (APIs) that support on-demand pay.


• More companies offering EWA options to their employees, resulting in more business opportunities for fintech companies. 


• Increased financial literacy programs to educate users about responsible EWA usage, reducing the risk of financial mismanagement.


• Companies adapting their payroll systems to integrate EWA solutions, streamlining employee access to earned wages.


• EWA services expanding into new markets, creating competition among local and international fintech firms.

Questions to consider

• What are the possible benefits of EWA startups developing application programming interfaces (APIs) for on-demand payment systems?


• What are the other potential benefits of EWA?