London Daily

Focus on the big picture.
Wednesday, Oct 22, 2025

These companies are revolutionizing how people get paid

These companies are revolutionizing how people get paid

The majority of Americans live paycheck to paycheck, and getting paid every two weeks can lead to problems when unexpected bills show up. But help is now on the way.

Some companies are giving workers early access to their earned wages rather than have them wait for their paycheck every two weeks.

One reason for the shift: Venmo, PayPal, Apple Pay and other technologies have made access to money feel instantaneous.
"The way Millennials are interacting with tech and money, the expectation of immediacy will ultimately change the way we get paid," said Doug Politi, president of compliance solutions at ADP (ADP) at an event earlier this month.

The support for these kinds of pay programs has been overwhelmingly positive, according to Glassdoor Senior Economist Daniel Zhao.

Giving employees more control of their finances could eliminate their need to use payday lenders, which charge high interest rates, to deal with unexpected expenses. That's why instant pay models could be positive for workers, Zhao added.

The healthier the American consumer, the healthier the economy: Discretionary spending accounts for some two-thirds of US GDP growth.

The United States' biggest employer, Walmart (WMT), has already changed how it is paying its workers. Since the end of 2017, Walmart employees can get instant access to their wages via an app called Even that doubles as a financial planner. The app also helps people to budget and allows them to automatically save from their paychecks.

Companies have different models for who pays for the instant transfers. Walmart, for example, allows employees early access to two paychecks per quarter for free via Even. Workers can get constant access to the instant pay function for $6 a month.

Although instant pay is merely an option for workers and hasn't totally replaced the traditional payday, some 400,000 Walmart employers are using the app, said David Hoke, Walmart's senior director of associate health and well-being.

One issue the company wanted to tackle was the bumpy pay cycles in lower-salary retail or seasonal jobs, Hoke said.

Although Walmart is the company with the biggest footprint, it isn't the only one dabbling in pay innovation.

Restaurant chain Noodles & Company (NDLS), which employs just under 10,000 people, also gives its workforce the option to use Even. Offering instant compensation for its workers allows the company "to differentiate ourselves given the low unemployment rate and the high turnover in the restaurant business," said Amy Cohen, director of total rewards at Noodles & Company.

"I absolutely think this is the future of payroll," she added.

Ride-sharing companies Uber (UBER) and Lyft (LYFT) allow their drivers to draw down on earned wages before payday as well.
At this point, instant payments are not ubiquitous in the US labor market. Only some companies offer the option at this point. But a change seems underway to turn the world of payments on its head.


More than instant gratification

Having immediate access to wages, possibly at a small fee, allows employees to smooth out their otherwise bumpy cashflow. But the assumption that this holds particularly true for lower-income earners is false. People across the payscale live paycheck to paycheck.

But just giving workers immediate access to their money isn't enough to breed better behavior when it comes to personal finances and the health of American consumer.

"I actually think this shift to getting paid every day would be bad," said Even co-founder and CEO Jon Schlossberg.

But access to cash alone doesn't force people to rethink the financial habits that would otherwise send them to payday lenders, Schlossberg said.

"The thing that is predatory about payday loans isn't the high interest rate," he told CNN Business, though the high-interest rates are part of why payday lending is predatory, "it's that you have to pay it back when you get paid. You become trapped in this cycle. On-demand pay has the same risk."

When workers draw down on their earned salary early, that money comes out of their regular paycheck.

Constant access to earned wages could eliminate the need to make any financial plans at all, because any expense could be paid with an instant salary drawdown. But Even's app wants people to get better at living within their means rather than getting trapped in just another vicious cycle. The app allows employees to put savings aside right away, for example. At Walmart, some 81,000 workers have taken the savings feature up.

Even's intention to help Americans become more financially fit is noble. But Schlossberg is also being realistic about the new pay models representing a new way to make money for payment processing companies.

"I think that on-demand pay will be a commodity within the next 12 months. All the payment processing companies are building it now because there is so much demand," he said.

Newsletter

Related Articles

0:00
0:00
Close
‘Frightening’ First Night in Prison for Sarkozy: Inmates Riot and Shout ‘Little Nicolas’
White House Announces No Imminent Summit Between Trump and Putin
US and Qatar Warn EU of Trade and Energy Risks from Tough Climate Regulation
Apple Challenges EU Digital Markets Act Crackdown in Landmark Court Battle
Nicolas Sarkozy begins five-year prison term at La Santé in Paris
Japan stocks surge to record as Sanae Takaichi becomes Prime Minister
This Is How the 'Heist of the Century' Was Carried Out at the Louvre in Seven Minutes: France Humiliated as Crown with 2,000 Diamonds Vanishes
China Warns UK of ‘Consequences’ After Delay to London Embassy Approval
France’s Wealthy Shift Billions to Luxembourg and Switzerland Amid Tax and Political Turmoil
"Sniper Position": Observation Post Targeting 'Air Force One' Found Before Trump’s Arrival in Florida
Shouting Match at the White House: 'Trump Cursed, Threw Maps, and Told Zelensky – "Putin Will Destroy You"'
Windows’ Own ‘Siri’ Has Arrived: You Can Now Talk to Your Computer
Thailand and Singapore Investigate Cambodian-Based Prince Group as U.S. and U.K. Sanctions Unfold
‘No Kings’ Protests Inflate Numbers — But History Shows Nations Collapse Without Strong Executive Power
Chinese Tech Giants Halt Stablecoin Launches After Beijing’s Regulatory Intervention
Manhattan Jury Holds BNP Paribas Liable for Enabling Sudanese Government Abuses
Trump Orders Immediate Release of Former Congressman George Santos After Commuting Prison Sentence
S&P Downgrades France’s Credit Rating, Citing Soaring Debt and Political Instability
Ofcom Rules BBC’s Gaza Documentary ‘Materially Misleading’ Over Narrator’s Hamas Ties
Diane Keaton’s Cause of Death Revealed as Pneumonia, Family Confirms
Former Lostprophets Frontman Ian Watkins Stabbed to Death in British Prison
"The Tsunami Is Coming, and It’s Massive": The World’s Richest Man Unveils a New AI Vision
Outsider, Heroine, Trailblazer: Diane Keaton Was Always a Little Strange — and Forever One of a Kind
Dramatic Development in the Death of 'Mango' Founder: Billionaire's Son Suspected of Murder
Two Years of Darkness: The Harrowing Testimonies of Israeli Hostages Emerging From Gaza Captivity
EU Moves to Use Frozen Russian Assets to Buy U.S. Weapons for Ukraine
Europe Emerges as the Biggest Casualty in U.S.-China Rare Earth Rivalry
HSBC Confronts Strategic Crossroads as NAB Seeks Only Retail Arm in Australia Exit
U.S. Chamber Sues Trump Over $100,000 H-1B Visa Fee
Shenzhen Expo Spotlights China’s Quantum Step in Semiconductor Self-Reliance
China Accelerates to the Forefront in Global Nuclear Fusion Race
Yachts, Private Jets, and a Picasso Painting: Exposed as 'One of the Largest Frauds in History'
Australia’s Wedgetail Spies Aid NATO Response as Russian MiGs Breach Estonian Airspace
McGowan Urges Chalmers to Cut Spending Over Tax Hike to Close $20 Billion Budget Gap
Victoria Orders Review of Transgender Prison Placement Amid Safety Concerns for Female Inmates
U.S. Treasury Mobilises New $20 Billion Debt Facility to Stabilise Argentina
French Business Leaders Decry Budget as Macron’s Pro-Enterprise Promise Undermined
Trump Claims Modi Pledged India Would End Russian Oil Imports Amid U.S. Tariff Pressure
Surging AI Startup Valuations Fuel Bubble Concerns Among Top Investors
Australian Punter Archie Wilson Tears Up During Nebraska Press Conference, Sparking Conversation on Male Vulnerability
Australia Confirms U.S. Access to Upgraded Submarine Shipyard Under AUKUS Deal
“Firepower” Promised for Ukraine as NATO Ministers Meet — But U.S. Tomahawks Remain Undecided
Brands Confront New Dilemma as Extremists Adopt Fashion Labels
The Sydney Sweeney and Jeans Storm: “The Outcome Surpassed Our Wildest Dreams”
Erika Kirk Delivers Moving Tribute at White House as Trump Awards Charlie Presidential Medal of Freedom
British Food Influencer ‘Big John’ Detained in Australia After Visa Dispute
ScamBodia: The Chinese Fraud Empire Shielded by Cambodia’s Ruling Elite
French PM Suspends Macron’s Pension Reform Until After 2027 in Bid to Stabilize Government
Orange, Bouygues and Free Make €17 Billion Bid for Drahi’s Altice France Telecom Assets
Dutch Government Seizes Chipmaker After U.S. Presses for Removal of Chinese CEO
×