As employee expectations evolve, traditional payroll systems are struggling to keep up with a workforce that demands flexibility, speed, and support - especially in the face of ongoing economic pressures.
One increasingly popular solution is earned wage access (EWA), which gives employees instant access to the wages they've already earned, without having to wait until payday.
In this blog, we take a look at why fintechs and HR platforms are at the forefront of enabling this shift, and how we help power the payment infrastructure that makes it all possible.
Why earned wage access is on the rise
The demand for more responsive payroll solutions is accelerating:
- According to a CIPD Reward Management Survey, more than 1 in 10 UK employers now offer earned wage access to staff - a number expected to grow significantly.
- Research by Visa and Maru Group in the UK and Spain found that if employers provided on-demand pay, 43% of employees would recommend the company to potential customers, 42% would provide better service, and 42% would recommend the employer to potential employees.
- The rise of gig and short-term contract work has created a clear need for real-time payment capabilities.
- In countries like France, Spain, Italy, and Portugal, providing a form of earned wage access is already mandatory.
It’s not just about convenience – earned wage access addresses real financial needs. Whether it’s covering emergency expenses or reducing dependency on high-interest credit, it is becoming an essential part of modern payroll.
Earned wage access vs salary advance: What's the difference?
While often used interchangeably, there’s a key distinction between earned wage access and salary advance:
Earned wage access enables employees to withdraw pay for work they’ve already completed.
Salary advance is a loan against future earnings - essentially paying employees before they’ve worked the hours.
This difference matters for both compliance and user experience. Earned wage access is less risky and more sustainable for both employees and the platforms offering the service.
How Edenred Payment Solutions powers earned wage access solutions
As a long-standing player in the payment and employee benefits space, we provide a robust infrastructure that fintechs and HR platforms can rely on to develop and scale earned wage access solutions – without needing to go through lengthy regulatory hurdles.
Let’s take a look at what a typical framework could look like ⤵
We provide a three-tiered account structure designed for efficiency and control:
- Master account
This e-money account is issued by EPS and is associated with the fintech or HR platform. This ledger will hold the funds designated for salary advance and will be used for fee collections as a result of providing the service. - Sub-account (Employer level)
Each employer that adopts the solution receives a dedicated sub-account in the corporate's name. This is where funds are received from the master account to be then disbursed to their employees through a payment scheme e.g. Faster Payments Service (FPS) in the UK. - Employee account
This is the account where employees receive inbound payments from the individual's employer, the collection of fees for the service and disbursement of remaining funds to the employees' external bank account via the payment scheme e.g. FPS.
This model is designed to be secure and scalable - ensuring smooth, real-time fund flows between the employer and employee/consultant.
What are the benefits of working with Edenred Payment Solutions?
Fintechs building earned wage access programs often face regulatory hurdles.
Let’s explore how working with a payment partner, like Edenred Payment Solutions, can make that simpler:
- 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
Employees expect payroll to work like everything else in their digital lives - fast, flexible, and always available. With earned wage access becoming a core feature of modern HR offerings, fintechs and HR platforms need reliable partners to bring these services to market.
At EPS, we offer more than just compliance and technical infrastructure - we bring years of experience in the employer benefits space and a commitment to building smarter, more connected financial experiences.
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.
