What is earned wage access & should your platform offer it?

As fintech, HR tech, and workforce platforms race to differentiate, one trend is gaining real traction: Earned wage access (EWA).

EWA is a feature more platforms are looking to build into their offerings - whether to support payroll flexibility, enhance worker wellbeing, or unlock new revenue streams. But building a compliant, scalable EWA platform is no small feat.

In this guide, we’ll walk through what earned wage access actually is, why the opportunity is growing, and what infrastructure is required to bring a reliable EWA solution to market. Whether you're building from scratch or extending an existing product, this article will help understand EWA better and find out how Edenred Payment Solutions can power your journey.

What is earned wage access?

Earned wage access (also known as early wage access, we’ll use these terms interchangeably in this article) gives employees the ability to access a portion of their accrued earnings before the end of the traditional pay cycle. It’s not a loan - there’s no interest or repayment plan. Rather, it’s money the employee has already earned but hasn’t yet received due to payroll schedules.

Here’s a simple example: An employee has worked ten days of a monthly pay period. Rather than waiting until payday, with earned wage access they can choose to withdraw part of the wages they’ve already accrued - say, 50% of their earnings so far - whenever they need it.

Employers either handle this in-house via payroll integration or partner with third-party earned wage access providers. In some cases, access is provided through virtual cards that employees can use instantly.

Why is earned wage access gaining traction?

The traditional monthly payroll cycle is increasingly viewed as outdated in today's dynamic workforce, both by employers and employees. Living costs don't wait for payday, and neither do unexpected emergencies. 

In the UK, a significant portion of the adult population – almost 50% – reports they would struggle to cover an unexpected £100 expense.  But this isn't just a personal challenge; it translates directly into a business one, as financially stressed employees are more prone to distraction, absenteeism, and higher turnover in pursuit of better benefits.

Forward-thinking employers are actively exploring earned wage access as a powerful tool to bolster employee wellbeing, significantly reduce turnover, and enhance their overall value proposition. A proactive approach is becoming more common, with 10% of UK businesses now offering some form of earned wage access to their staff.

Why integrate an earned wage access (EWA) platform?

For workforce platforms, payroll software providers, paytech companies, and HR solutions, integrating earned wage access is no longer just an option - it's becoming a crucial competitive differentiator.

Here's why building EWA into your offering makes strategic sense:

• High employer demand: UK businesses, particularly in sectors like retail, hospitality, healthcare, and logistics, are actively seeking financial wellness tools to attract and retain top talent. EWA directly addresses this need.
• Meeting worker expectations: Today's workforce values flexibility. Access to earned pay is rapidly evolving from a niche offering to an expected standard benefit in many industries, improving employee satisfaction.
• New monetisation opportunities: EWA opens up diverse revenue streams. This can include platform fees, interchange revenue (especially when combined with card solutions), or employer-paid models, creating a profitable new service.
• Enhancing product stickiness: Platforms that offer integrated EWA solutions typically see increased user engagement, higher satisfaction rates, and a significant reduction in customer churn.

In essence, EWA is a high-value feature with substantial commercial upside for your platform - provided it's implemented effectively.

Challenges of building earned wage access capabilities 

We’ve established that early wage access is gaining traction and can provide great benefits to employees and employers, but building a platform that’s compliant, operationally sound, and ready to scale requires deep planning.

Common complexities and considerations include:

• Liquidity management: A critical question is who funds the wage advance - the employer, the EWA provider, or a third party? Equally important is establishing a robust and transparent process for fund reconciliation.
• Accurate data access: Reliable access to real-time data, including time and attendance records, shift information, and payroll data, is absolutely essential for accurately calculating and verifying earned pay.
• Real-time payment infrastructure: To deliver on the promise of on-demand access, your platform requires seamless integration with Faster Payments (UK), SEPA Instant (EU), and virtual card rails for instant disbursement.
• Flexible employer configuration: Your platform must be capable of supporting diverse client needs, including different funding models, advance limits, employee eligibility rules, and repayment schedules.
• Navigating regulatory landscape: While EWA is generally not classified as credit, it's crucial to diligently scrutinise consumer protection laws, data handling regulations (like GDPR), and fair-use design principles to ensure full compliance and protect users.
• Scalability and compliance: As the volume of transactions grows, your systems must effortlessly manage reconciliation, reporting, and settlement processes without friction, all while maintaining rigorous compliance standards.

How earned wage access works

1. Real-time earnings tracking: The platform integrates with payroll or time-tracking systems to calculate how much an employee has earned to date.
2. Withdrawal rules & limits: Employers or providers set limits - such as maximum access per pay cycle, eligibility criteria, and funding responsibility.
3. Instant disbursement: Employees request funds through an app, and money is disbursed instantly via virtual cards or real-time bank transfers (e.g. Faster Payments, SEPA Instant).
4. Payroll reconciliation: On payday, the advanced amount is automatically deducted from the employee’s wages and settled accordingly.

Learn more about how EWA works with Edenred Payment Solutions

Edenred Payment Solutions: Powering earned wage access platforms

If you're looking for an early wage access provider that can power real-time disbursements, embedded accounts, and scalable infrastructure across the UK and Europe, Edenred Payment Solutions is the partner to build with.

• Reduce regulatory burden: Avoid the hassle of acquiring your own licence - gain peace of mind by operating under the regulatory cover of a UK and EU licensed e-money institution, with safeguarding obligations handled for you.
• Access UK payment schemes with ease: Flexible e-money accounts give you control and are connected to UK payment schemes like Faster Payments, BACS, and CHAPS to streamline your operations.  
• Serve EU users seamlessly: Launch EU-ready products that enable flexible pay with EU IBANs and direct access to SEPA payment schemes, making it simpler to operate across the UK and European markets.
• Endure reliable payment processing: Depend on a proven in-house processing engine that keeps your payroll-linked services running smoothly - with high uptime, availability, and cost-efficiency.
• Integrate and scale faster: Leverage an API-native platform that accelerates your development timeline, giving you the flexibility to scale and adapt your product to evolving user needs and market demands.
• Edenred Group expertise: As part of the Edenred Group, our heritage is within the employer benefits space. This means we have the deep knowledge required to support innovative earned wage access programs and can provide access to a wider ecosystem of employee benefit solutions, including platforms like Reward Gateway.
  
  

Final thoughts

EWA is no longer a fringe benefit. It’s fast becoming a core feature for platforms aiming to modernise payroll, improve worker wellbeing, or differentiate in a crowded market.

But to build a product that’s trusted, compliant, and ready to scale, infrastructure matters. That’s where Edenred Payment Solutions comes in - powering early wage access platforms with real-time payments, embedded accounts, and secure fund flows across the UK and Europe.

If you’re planning to build or enhance an EWA product, let’s talk.

Ready to power your early wage access solution?

Get in touch with our experts to explore how we can help you design and launch a compliant, efficient earned wage access program.