In the past decades, the predatory lending practices of payday lenders have had detrimental effects on the lives and financial well being of wage earners. As a result, employees who rely on their payday checks are locked into predatory lending contracts, which in most cases affect their credit scores and personal lives. Fortunately, financial innovators developed a platform with a simple solution of giving wage earners access to their paychecks in real time.

The new payment technology has been enabling millions of American workers to access their earned income without having to wait for the bi-weekly or monthly payday should unexpected expenses occur in between those pay periods.

Even better is that many of the leading employers in the US, from Target to HIlton, are using the new wage-access payment technology. Actually the new payment innovation has been helping workers take out loans that could damage their credit as they become subjects of the predatory methods of collection agencies.

It offers a solution for emergency situations that create a need to pay for unexpected expenses such as automobile repairs, replacement of a broken water heater or just a simple case of not being able to live on one’s salary from paycheck to paycheck.

A Closer Look at How EWA Technology Works

Also known as On-Demand Pay, Earned Wage Access (EWA) software and mobile applications are payroll innovations that allow workers to take out salaries instead of predatory loans during the current payroll period but before the actual pay day. The EWA technology can also apply to hourly-wage earners by giving them access to accrued real-time wages already earned.

The EWA software is integrated in a company’s payroll system to work as a separate processor of requests for the release of salaries already earned ahead of pay day date. The amounts of EWA released are net of applicable tax deductions as the latter still forms part of the overall payroll deductions withheld for remittance to the IRS after pay day events.