Earned Wage Access

The bill, known as the STOP Act, was introduced by State Sen. Samra Brouk and Assemblymember Steven Raga, and proposes that any wage or cash advance be considered a loan and subject to the state's 16% civil usury law.

Rep. Bryan Steil, R-Wis, and Rep. Ritchie Torres, D-NY, introduced a federal earned wage access bill that would prevent EWA from being classified as credit and preempt any state from designating it as such.

Significant regulatory, legislative and business developments could shape the industry this year, putting pressure on banks to respond.

Earned wage access fintechs say the Consumer Financial Protection Bureau's advisory opinion provides important clarity on the finance product, but legal experts warn that its practical impact could be minimal.

The year was marked with six state regulations, new entrants, product and market expansion from existing EWA providers and buy-in from investors.

The Consumer Financial Protection Bureau in an advisory opinion said that "covered" earned wage access products should not be considered an extension of credit under the Truth in Lending Act. It also said that expedited delivery fees and tips should not be considered finance charges.

Earned wage access provider EarnIn, which historically has been known for direct-to-consumer EWA, is now offering a payroll software solution. The move comes as consumer advocate groups step up efforts for stricter regulation of the industry.

The number of states with earned wage access legislation doubled in 2025 with six states passing new laws. Connecticut regulators have been particularly strict, creating conflict between lenders and the government.

Fintechs are rolling out business financing tools that are packaged as buy now/pay later and earned wage access in the hopes of capturing momentum from the budding consumer finance industries.

Self Financial sees earned wage access as the perfect complement to its suite of credit building products. It's the latest example of EWA being paired with broader financial wellness products.

As more states pass legislation, it's become a challenge for firms to stay on top of compliance. Executives spoke with American Banker about their strategies.

Direct-to-consumer earned wage access provider EarnIn is rolling out Live Pay, a service that "streams" consumers' paychecks via a Visa card. It's a model banks could replicate.

12 states have laws governing earned wage access, also known as on-demand pay, and while many follow similar general guidelines, small – yet critical – distinctions are emerging with each new regulation.

Connecticut has set strict new rules for EWA providers; Louisiana's regulation is more aligned with existing state laws.

Barclays led the sale, which consisted of three investment grade rated bonds and one rated junk.