Earned wage access (EWA)
A service that lets workers draw part of the pay they have already earned before payday, usually settled from their next paycheck.
What earned wage access is
Earned wage access (EWA), also called on-demand pay, gives workers access to wages they have earned but not yet been paid. Employer-integrated programs recover the amount through payroll deduction. Direct-to-consumer apps estimate earnings and collect on payday, often for a fee or an optional tip.
How it works
Employer-integrated providers connect to payroll or time data to see what a worker has earned, while direct-to-consumer apps often estimate it. The worker requests part of it, and the funds arrive by ACH or, often for a fee, through instant payments or a debit card push.
- 01 · CONNECT The provider links to payroll or time data to track wages as they are earned.
- 02 · REQUEST The worker requests part of earned pay and receives it by ACH, instant payment or card.
- 03 · SETTLE On payday, the amount is deducted from pay or collected from the worker's account.
When businesses use it
- Employers offering early pay as a benefit for hourly and shift workers
- Gig platforms that let drivers and couriers cash out after each shift
- Payroll and HR software adding on-demand pay for their clients
- Pay cards and accounts that receive EWA funds
Cross River's API-driven bank core supports earned wage access providers with payouts over RTP and push-to-card, plus card and account features for their users. See earned wage access at Cross River.