I’ve seen more focus on earned wage access recently, but fintech nerds may not understand the opportunity or unit economics. So, it’s time for another over-engineered deep dive.

To set this up, let’s define Earned Wage Access / Early Wage Access / Earned Wage Advance (“EWA”). At its core, EWA relies on three tenets:

1. Specifically for intra-paycheck liquidity
2. Extremely short duration (<2 weeks)
3. Non-recourse

These tenets define EWA’s core principles and minimum requirements. Non-recourse is a critical element, allowing for the key features of the typical EWA product:

• No fixed repayment schedule and limited ability to collect on outstanding advance beyond the agreed-upon revenue stream (the specific paycheck).
• No need for state lending licenses for originations.
• No requirement to disclose the APR or structuring fees as APRs, which would make these products seem predatory.