Consumers faced unexpected expenses as the pandemic has taken an economic toll, so many have tried to fill the gap with earned wage access products; companies like PayActiv, DailyPay, Earnin and Branch have seen a spike in demand; PayActiv says it has seen a 300% to 500% increase in demand at delivery businesses, senior workers and companies that provide workers to Amazon; CEO and founder of PayActiv, Safwan Shah, said, “This crisis has accelerated the natural order, and the natural order is that if you’ve earned it, and you need it, you should be able to access it”; while many industry practitioners believe that earned wage access is a better alternative to payday others say it is just another type of loan that does not encourage responsible personal financial management. Tearsheet
Peter Renton is the chairman and co-founder of LendIt Fintech, the world’s first and largest digital media and events company focused on fintech. Peter has been writing about fintech since 2010 and he is the author and creator of the Fintech One-on-One Podcast, the first and longest-running fintech interview series. Peter has been interviewed by the Wall Street Journal, Bloomberg, The New York Times, CNBC, CNN, Fortune, NPR, Fox Business News, the Financial Times, and dozens of other publications.