The American Fintech Council (AFC), an industry association representing Fintech companies and banks, this week announced that financial benefits platform Wagestream has become its newest member.
“Wagestream has done a phenomenal job of scaling its financial wellbeing approach to span multiple different benefits for workers, and now to multiple different geographies,” said AFC CEO Phil Goldfeder. “Having paved the way for an earned wage access code of conduct in the UK market and raised standards by consistently publishing its own research data and findings, it has also shown credentials as a fintech with social impact embedded at its core. That makes Wagestream a perfect example of the organizations we represent—many of whom see, every day, the benefits of giving workers choice and control over their own earnings.”
Wagestream was founded with investments from several social impact organizations and offers a range of different financial benefits – from interactive paychecks and savings tools to money coaching and flexible pay or earned wage access. The majority, 74%, of workers using it report feeling more in control of their money—leading to happier, healthier, more productive workforces, and improved recruitment, retention and engagement for their employers.
Emily Trant, chief impact officer at Wagestream, who spearheaded the formation of the UK’s EWA Code of Practice, said, “Nine in 10 say their finances are stable or improved once they can choose their own pay cycle with EWA. This is one of the biggest trends in payroll and has the ability to improve the financial well-being of millions. As the industry grows, it’s imperative a common standard is adhered to, to ensure the protection of those.”
The AFC said earned wage access is a payroll innovation that enables workers to get paid when they choose. Gartner estimates that around 20% of frontline employers now offer it as a benefit to their employees, and Wagestream’s Unlocking the Pay Cycle research found that nine in 10 frontline workers prefer the option.
“Responsible, affordable and transparent earned wage access providers are democratizing financial services and disrupting broken legacy systems that have historically put consumers at a disadvantage,” the AFC said. “AFC has worked tirelessly to advocate and represent earned wage access provider best practices and consumer protections, including strong transparency, non-recourse, no late fees, no debt collection, no credit reporting, no collection activity of any kind and a requirement that a ‘no cost’ option be offered to all earned wage access users.
“The AFC and its earned wage access members stand united in ensuring that these best practices are implemented across the industry for the benefit of consumers.”