As an early access to income provider, Earnd welcomes the Financial Conduct Authority’s (FCA) position on Employer Salary Advance Schemes (On-demand Pay) as an alternative to high cost credit.

Earnd is an app that allows employees to access their pay as they earn it in real-time and for free.

The team at Earnd welcome the FCA’s position on Employer Salary Advance Schemes (on-demand pay) as an alternative to high-cost credit.

We’re focused on creative positive impact through early access to income and are committed to minimising incorrect usage of the product.

We’re excited that the FCA is recognising, “that when used in the right way ESAS [Employee Salary Advance Scheme] can help employees.”

We’re focused on employee financial wellbeing

We also wanted to share what we’re doing day in, day out at Earnd to further our mission to support employee financial wellbeing.

Aligned to the FCA’s guidance to employers, Earnd actively listens to our customers and users to iterate our product and experience, ensuring positive financial wellbeing outcomes are being achieved.

  • There is friction in the experience to ensure users understand they are drawing down on their earned income — we ask them to acknowledge their understanding in plain English with no hidden disclaimers.
  • We don’t charge users fees to access their own money — we believe it’s their right to take the money that is rightfully theirs.
  • We signpost users to useful and relevant support as and when they need it — our support team monitors and actively reaches out to see if users are experiencing negative outcomes from early access to their pay.
  • We only allow users to draw down on the percentage of their income we agree to with their employers — our users can also lower their withdrawal limit from the Earnd app.

Our aim is to help users budget, manage their money and improve their financial position and resilience — now and in the future.

Aligning income and expenses

These days, bills and expenses don’t align with pay cycles, making it difficult to manage day-to-day spending. Earnd gives users the option to cover these costs on time, avoiding late fees and interest charges.

Research finds people pay closer attention to their spending when they get smaller, more frequent pay cheques than when they receive less frequent larger lump sums. Earnd allows people to smooth their expenses and by accessing their pay when they need it and staying on top of what they earn.

Track and access daily pay

People tend to spend more money on discretionary items on pay day than on any other day. Earnd gives people a clear picture of their daily income, a sobering figure that can better equip them for spending decisions.

Research suggests those on a monthly pay cycle tend to feel rich when they are paid then cut back significantly as pay day draws near, spending less on coffee and eating out and even delaying household bills. Early access to can help users feel secure and avoid an intoxicating ‘pay day rich’ feeling.

Optimising interest and avoiding credit

When people have to wait to access the money they have earned, they also miss out on the opportunity to lower interest rates on debt or earn more interest on savings or investments. Earnd completely reverses this for users.

Saving for the future and not borrowing for everyday expenses are key components to financial wellbeing. Earnd lets users cover unexpected costs from their pay, so they can get ahead without relying on high-interest credit.

We’re proud to be building a product that has such a significant potential to do good and are excited that our thinking aligns so strongly to the FCA’s.