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Earned Wage Access Impact Assessment: Latest findings

See the ways people are using our tools to build financial resilience.

Earnd’s parent company Wagestream has released their latest report on how earned wage access is being used by our community in the UK. The findings show the ways people are using our tools to build financial resilience and ultimately reverse the interest charging debt model set up by banks.

Here are some of the standout statistics.

6 in 10 people are focused on tracking their earnings

For 62% of people using the app, their main purpose is to monitor their daily earnings through the Track feature. This group didn’t make any transfers, preferring to get certainty about what they’d earned at certain points in the month. This is particularly important for shift workers – without visibility over earned wages, they don’t know how much to expect they’ll be paid and this makes budgeting harder. 

People that withdraw take out a quarter of their salary

Of the people using the app to access their earned wages, the average total of withdrawals per month is 26% of gross salary – close to half of the 50% available. The main reasons people withdraw are to cover bills (33%)and buy groceries (21%). This suggests people are accessing their wages to smooth their income and cover essential costs.

Earned wage access reduces reliance on credit and interest charges

Having earned money on hand for when it’s needed helps reduce the need for people to borrow and pay interest. Of people who had previously used payday loans, 88% reported a decrease in the use of payday loans thanks to earned wage access. Similarly, use of credit cards has been reduced 39% and use of overdrafts has been reduced 31%.

With continued access to earned wages, people reduce their withdrawals over time

12 months after making their first withdrawal, the average person makes fewer transfers a month and also transfers a smaller percentage of their pay throughout the month. This indicates that the ability to access earnings without being charged interest can help people absorb financial shocks while also building their ability to live within their means.

Earned wage access improves quality of life

7 in 10 people feel more in control of their finances and 1 in 2 people say there’s been an improvement in their ability to plan their finances since downloading the app. But perhaps most importantly, 6 in 10 say their overall quality of life has improved.

What next?

Your business can pilot Earnd anytime to see how significant these changes can be. It only takes a couple of weeks to set up and begin seeing results.

 And you can read the report in full to see more about the improvements companies like Bupa and Hungry Jack’s are seeing.

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