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How Digital Value Improve Earned Wage Access Programs

How Digital Value Improve Earned Wage Access Programs

To stay competitive, employers need more innovative ways to support their employees and enhance their financial well-being. Near instant access to earned wages have become one way employers fill the gap. Traditional payroll cycles do not always align with immediate financial needs of employees. Earned wage access (EWA) solutions have addressed this issue, offering employees greater control over their earnings. One particularly appealing method of accessing earned wages is through the use of digital value such as digital gift cards.

According to a Ceridian study, 78% of employees between the ages of 18-44 said earned wages access would improve their company loyalty.

Organizations who want to improve employee attraction, engagement, and retention, should explore the various benefits of using digital gift cards for earned wage access. Digital value provides a convenient and versatile financial solution to a workforce seeking to receive payouts in digital forms.


Give Employees Instant Access to Earnings with Digital Gift Cards

One of the primary advantages of using digital value such as closed-loop gift cards for earned wage access is the instant availability of funds. If employees work today, they can get paid today. Gig workers, for example, are the perfect audience for earned wage access using digital gift card payouts since flexible payouts could save gig workers both time and money if they could access their wages right after a shift. 

By loading the earned wages onto a gift card, individuals gain immediate purchasing power, enabling them to meet their financial obligations or make essential purchases without delay.


Earned Wage Access Promotes Financial Independence

Using digital gift cards for earned wage access promotes financial independence. Employees no longer have to rely on credit cards, payday loans, or other costly forms of borrowing to bridge the gap between paydays. With earned wage access through digital value, individuals can access their own earned income without incurring debt or paying excessive interest charges. This empowers workers to manage their finances more responsibly and avoid falling into financial traps.


Closed Loop Digital Gift Cards Support Budgeting and Financial Planning

Digital gift cards support employees in better managing their finances and practicing effective budgeting. More than half of workers are living paycheck to paycheck. By allocating earned wages to specific closed-loop gift cards, employees can assign funds to essential categories like groceries, transportation, or utility bills. This approach helps individuals establish spending boundaries, track expenses, and prioritize financial goals. By promoting responsible financial habits, gift cards contribute to the financial stability and long-term financial well-being of employees.


Digital Value Offers Versatile Spending Options

Digital value, like gift cards and subscriptions, offer a wide range of spending options, allowing individuals to use their earned wages in various ways. Whether it's for groceries, household essentials, clothing, entertainment, or online shopping, gift cards provide flexibility in how and where the funds are used. Employees can choose gift cards from popular retailers, online marketplaces, or even prepaid debit cards, enabling them to make purchases conveniently and according to their preferences.


Sending Digital Value is Free and Instant for Everyone

Sending digital value for earned wage access can reduce costs associated with traditional payroll methods for both organizations and employees. Typically EWA programs rely on push-to-card programs which the employer passes on the fees  to the employee decreasing their payout amount. In some cases additional discounts from merchants can be passed along to workers helping them make better use of their earnings. 

Additionally, organizations can negotiate favorable terms with gift card providers, obtaining bulk discounts or other incentives, resulting in even more cost savings for the company.


Digital Value Is Just As Good As Cash

Digital value holds the same level of functionality and utility as cash, making it a highly versatile form of currency. It can be spent in the places workers typically spend their paychecksWhether it's at local grocery stores, department stores, or online retailers, digital value can be used for essential items such as groceries, household goods, clothing, and personal care products, and splurges like experiences,  online food delivery and even digital subscriptions.

Allow Runa to power your on-demand earned wage access program. Request a demo.