On-Demand Pay: What Does the CFPB Have to Say About It?
/Over the years, consumers have become accustomed to getting what they want when they want it, usually by doing no more than clicking a few buttons. They can watch new shows by the season, get same day shipping from marketplaces like Amazon, and order groceries online for immediate delivery.
So it makes sense that this desire for immediacy extends past commodities. Employers are beginning to implement a system referred to as on-demand pay, which is exactly as it sounds: pay day, any day. On-demand pay gives employees access to wages as they are earned.
The Consumer Financial Protection Bureau (CFPB) recently released an advisory opinion titled “Truth in Lending (Regulation Z); Earned Wage Access Programs,” which explains the nuances of earned wage access (EWA) and the complications of regulatory uncertainty.
To help simplify the document and discuss on-demand pay and early access to wages, PaymentsJournal sat down with Jason Lee, CEO of DailyPay.