5 facts about earned wage access (EWA)

The digital world is full of contradictions when it comes to money. You can Venmo a friend $10 for your half of a pizza right away, but you still have to wait weeks for your paycheck. Not anymore!

ZayZoon is changing how employees get paid with earned wage access (EWA). Our mission is to improve employees’ financial health by giving them instant access to their earned wages, along with the educational tools to help create long-term savings. 

What is earned wage access?

Earned wage access gives workers access to the money they’ve already earned ahead of payday so they can cover unexpected expenses without using payday loans, paying overdraft fees, or being late on bill payments.

The state of employee financial wellness

You’re here for quick facts about earned wage access, but let’s start with a status check on employees’ financial health as context for why EWA matters.

In 2024, we surveyed over 5000 employees and 500 HR professionals for our annual report, The state of employee financial wellness. 

While financial stress and wellness are multifaceted challenges, we learned: 

• How our current financial landscape impacts employees daily
• How financial stress impacts employee performance
• What can help to mitigate employee financial stress. 

Here are some key learnings from our report that provide some background on the financial health of today’s employees. 

Fact 1: Nearly 52% of employees are stressed about their finances daily or multiple times per day. 

Constant financial stress affects mental and physical health, affecting focus, motivation, productivity, and overall well-being. It also negatively impacts people’s personal and professional lives, making it difficult to meet their responsibilities or pursue opportunities for growth in the workplace.

Fact 2: More than half (61%) of HR professionals said their employees live paycheck to paycheck. 

This puts employees in a precarious position if unexpected expenses arise between paydays, often resulting in absenteeism. If you work in HR or people-ops, this should scare you–absenteeism is a costly issue for any workplace and directly impacts team productivity and morale. 

Fact 3: Just over half of employees (58%) have zero savings.

A lack of savings leaves employees vulnerable to payday loans, especially in the case of emergencies. Quick-fix solutions like payday loans are convenient, but come with exorbitant interest rates that trap borrowers in a cycle of debt. 

Fact 4: 73% of employees stated that covering necessities (bills, rent, and groceries) tops the list of their financial stressors.

Being stressed about covering the basics leads to a preoccupation with financial worries at work. A focus on employee financial wellness should be of critical importance for employers who want to create a healthier and more productive workplace. 

Fact 5: 36% of employees and 63% of employers said that financial stress impacts employees’ performance at work.  

When employees are preoccupied with financial stress, their productivity dwindles, leading to low individual and team morale, absenteeism, and a lack of motivation. 

Here’s a bonus fact: more than 12 million Americans use high-interest payday loans at least once a year when in times of financial hardship. The Consumer Federation of America reported that payday loans have an annual interest rate (APR) of over 400 percent. Short-term payday loans can have up to 780 percent APR. 

Today’s workers need a better solution than payday loans. They also need a better solution than employer-sponsored advances and paper checks, which often involve a lengthy wait that drains ever-precious HR resources. 

5 facts about earned wage access (EWA)

Now that you’re all caught up on the state of employee finances, let’s examine how earned wage access improves financial wellness for both employees and employers. 

Fact 1: Thanks to ZayZoon’s EWA, employees have access to money when they need it, eliminating the need for payday loans. 

Emergencies don’t wait for payday, and with earned wage access, employees don’t have to either. 19 percent of ZayZoon customers use earned wage access to pay off an unexpected, critical expense.

Whether it’s an unexpected car repair or a medical bill, ZayZoon’s EWA empowers employees to access their earned wages immediately, reducing reliance on predatory payday loans and sky-high interest rates.

Fact 2: ZayZoon’s EWA decreases financial stress. 

Employees can’t leave financial stress at the door, particularly when they are faced with the challenge of meeting their most basic needs. But with instant access to earned wages, employees can pay bills on time, avoid late fees, and cover everyday necessities. 

60 percent of ZayZoon customers use ZayZoon to pay for essential expenses, like groceries, medication, and utilities. This alleviates the financial pressure that weighs on so many workers, leading to improved mental health, better focus, and greater productivity at work.

Hear it from Brittany, a ZayZoon customer: 

“ZayZoon allows me a cushion of financial security until I receive my paycheck. That cushion means the world to us. It allows me to make choices I usually cannot make. That little bit of money in between checks has helped us greatly.” 

Fact 3: ZayZoon offers financial wellness resources to help employees build their long-term financial health alongside using EWA. 

EWA is just one piece of the puzzle. ZayZoon goes beyond short-term solutions by providing employees with fee-free options and financial wellness tools that promote smarter spending, saving, and planning for the future. This helps employees break out of the cycle of living paycheck to paycheck.

ZayZoon’s financial wellness offerings include financial education tools that provide simple, non-judgmental ways to avoid overdraft fees, increase financial literacy, and get smart insights into your overall spending behaviors.

Fact 4: ZayZoon’s fee-free EWA options cover necessities like gas without taking any money from employees’ paychecks–not even a transaction fee.

It’s not just about when employees get paid, but how much they actually take home. ZayZoon’s fee-free perks mean employees can stretch their wages further, sometimes getting more than their paycheck. 

Our gas card, which allows employees to instantly withdraw their earned wages to spend on gas, comes with a 5 percent bonus. So, if an employee takes out $100 in earned wages, they’ll actually get $105 to spend at the pump–without paying any fees. 

“There was a day when I got called and told I would have to travel further than usual for work. With such little notice, I didn’t have enough gas or gas money. So I tapped into the early access and was able to go and finish the job.” – Esmerelda, ZayZoon customer  

Fact 5: Employees who use ZayZoon's EWA are more likely to stay at their jobs and be present at work.

A year-long analysis of Country Fair employees found that turnover was 22 percent lower among those using ZayZoon compared to those who didn’t. Earned wage access helps employees manage their financial stress.

By addressing financial stress, ZayZoon helps employers reduce absenteeism and turnover while improving employee satisfaction and engagement. A financially stable employee is a focused, motivated, and loyal team member—everyone wins.

Set up ZayZoon’s earned wage access for your employees in 30 minutes

There’s no denying it: ZayZoon works for employees and employers. 

At ZayZoon, we work with you to deliver exceptional employee experience solutions. Thanks to the support of our all-star team and payroll-embedded product, you can have ZayZoon’s earned wage access up and running in 30 minutes.

Book a free demo to learn more about how ZayZoon can boost your employees’ financial health, motivation, engagement, and productivity!