FinTech news in EWA category

Despite concerns that the EWA technology is replicable, Aris Xenofontos, partner at Seaya, is of the belief that EWA is a defensible business model because the moving parts are complex enough to deter corporations from coming up with their own solutions. For accounts that start on an employee-pays model, employers will get a better understanding of how EWA improves employee productivity and retention over time. What we’ve found is that EWA startups typically service a mix of customers across both models, where the employer pays in some cases and the employee pays in others. Despite a few different EWA models seeing varying success at the moment, Ho believes the model that places the cost on the employer is the one that will win.

Users aren’t under a legal obligation to repay ZayZoon and ZayZoon won’t take action to collect payments, but nonpaying users will be limited from accessing the service in the future. ZayZoon’s platform allows small- and medium-sized businesses to implement what’s known as an earned wage access (EWA) program.