The American Fintech Council (AFC), an industry association representing fintech companies and banks, this week announced that earned wage access (EWA) provider ZayZoon has become its newest member. An EWA provider for small and mid-sized businesses, ZayZoon joins a growing group of diverse industry-leading EWA companies creating safe, transparent and affordable financial options for consumers.
“ZayZoon is the perfect example of a responsible innovative fintech company creating new tools to help small businesses and empower employees,” said AFC CEO Phil Goldfeder. “As the trade association already representing the largest share of EWA providers, AFC has established important standards for the emerging industry already safely serving millions of families. The AFC and its members use these standards to help guide the public policy landscape across the country at both the state and federal levels, alike. ZayZoon adds an important voice to the growing coalition, and we are excited for our future collaboration.”
ZayZoon is free for employers and takes only 30 minutes to implement. The platform also offers educational resources and tools to help workers break the paycheck-to-paycheck cycle.
According to a ZayZoon study, 89% of employees who use ZayZoon report less financial stress, 74% of customers say ZayZoon has helped them reduce payday loan usage and 75% say ZayZoon has helped reduce overdraft fees.
“ZayZoon is proud to join the AFC and help advocate for innovative products that give consumers more options and a chance at better financial outcomes. AFC’s mission to provide a transparent, inclusive and customer-centric financial system aligns with ZayZoon’s mission to improve employee financial health,” said its CEO Darcy Tuer.
EWA enables workers to access wages they have already earned when they need it and serves as an important alternative to arbitrary pay periods and high-cost predatory options. The AFC said responsible, affordable, and transparent EWA companies are democratizing financial services and disrupting broken legacy systems that have historically put employees at a disadvantage.
The AFC said it has worked to promote and advocate for industry best practices and consumer protections. AFC has publicly advocated for a clear and consistent regulatory framework for EWA that avoids duplicative or diverging requirements and accurately reflects the nuances of the financial service.
In their recently released industry standards, the AFC said it makes it clear that EWA is not a loan and should not be regulated as such. Unlike a loan, EWA services provide employees access to wages they have already earned prior to arbitrary biweekly or monthly pay periods. Additional standards include strong transparency and disclosures, non-recourse, no interest, late fees or penalties, no debt collection, no credit reporting, no collection activity of any kind, and a requirement that a “no cost” option be offered to all EWA customers.
