Earned Wage Access: Breaking the Pay Cycle

March 29, 2023
Product

The Problem

It has become a common habit for individuals to exhaust their salary before the end of the month. Let’s face it, we’ve all done it before, spending more than we anticipated to because of an unforeseen financial emergency or perhaps the need to buy an expensive gift for a loved one. How did it make you feel knowing you had no more cash in your account?

Additionally, how many of us have monthly financial commitments that must be paid on specific dates? The consequences of delaying payments make you feel worried. The possibility of not being able to pay these bills on time and having to pay for unexpected expenses adds even further strain.

What options do you have in case you run out of cash or haven’t budgeted for an unexpected expense? You will probably turn to family or friends, request a salary advance, or even get a loan from unregulated money lenders, which are all costly options and place you in more debt and stress. Credit cards are also an option, however, they come with hefty fees and are not accessible to everyone. Similarly, the concept of “buy now and pay later” is known to encourage unsustainable lending. All these solutions are considered predatory and increase debt, especially if they are not repaid on time, which has an adverse effect on your wellbeing.

The Alternative / Solution

The most cost-effective alternative is Earned Wage Access (EWA) or in some cases, it’s known as on-demand pay. This solution enables employees to access their earned, yet unpaid salary before payday. For every day you work, you earn, so why wait until payday? EWA is a low-risk solution that helps you cover minor emergencies or scheduled bills during the month. Also, it gives you greater flexibility to make better financial decisions.

What is the difference between EWA and other alternatives?

It is important to recognize the distinctions between EWA and other alternatives. There are misconceptions that it is a loan or even a salary advance, however, it is actually different and unique.

1) Low-cost / No Interest Fee

EWA is a low-cost, flat-fee solution that takes no interest on withdrawals, unlike payday loans, internal company loans, or even credit cards. The fee is deducted from the salary at the end of the pay cycle. It is not a loan or a form of credit as the money withdrawn is earned. As a result, individuals will receive instant financial relief that is burden-free.

2) On-demand / Timing

A portion of the salary can be withdrawn at any time, so long as you have earned it and have an available balance. In contrast to other alternatives, the withdrawal occurs instantly and does not require any documentation or paperwork. Receiving the amount needed through EWA is quicker than to what’s currently available.

3) Availability

The solution is available to all salaried employees and does not call for a credit check, any supporting documents, or anything else. Money is always at your disposal so long you have worked. Ryalize’s EWA solution is offered through our partner banks and is provided to their corporate clients.

How will EWA help individuals?

EWA comes with many benefits. Other than not having to pay interest, EWA enhances your overall financial wellness. You will now have greater financial autonomy, which will help you make smarter financial decisions. Reliance on credit cards and the need for high-interest loans decrease significantly, particularly in times of need.

It is 2023 and we are still receiving salaries once a month. Ryalize seeks to break the pay cycle. We assist individuals in various communities to access their earnings to support themselves and make ends meet when necessary. You should not be exploited by predatory lenders at times of weakness. It is time for everyone to take charge of their finances and become financially resilient.