Company Introduces Integrated System for Seamless Earned Wage Access Implementation
In a world where financial stress among employees is on the rise, the need for faster and more flexible payroll solutions is becoming increasingly important. Enter Branch Embedded, a new offering from workforce payment platform Branch, designed to simplify the process of providing Earned Wage Access (EWA), 1099 payouts, and paycard options.
EWA is transforming payroll into a strategic retention tool, according to recent reports. Nearly 6 in 10 EWA users claim it has helped them avoid borrowing, and 40% credit it with preventing late fees. This solution offers a welcome relief for employees who are no longer willing to wait two weeks to get paid, especially amid mounting financial stress.
The launch of Branch Embedded comes at a time when the legal framework around EWA is fragmented and often contested. Some states, such as Connecticut and California, have passed laws classifying certain EWA offerings as loans. However, the state of New York has yet to issue any search results indicating which companies have recently been charged for considering their EWA service fees as predatory lending. The state has, however, sued EWA providers DailyPay and MoneyLion, alleging their fees amount to abusive lending with interest rates up to 750% in some claims.
Branch Embedded addresses the challenge of whether to build an in-house payments system or partner with an existing one. Creating and maintaining a custom system is costly, time-consuming, and requires substantial compliance oversight. By partnering with Branch, businesses can focus on growth while Branch Embedded covers the entire payment lifecycle, including card issuing, fraud protection, disputes, and customer support.
For employers, the return on investment (ROI) of EWA is tangible. With lower churn, higher engagement, and a stronger recruitment appeal, EWA provides a win-win situation for both employers and employees. Atif Siddiqi, founder and CEO of Branch, stated that Branch Embedded helps platforms delight their users, strengthen worker loyalty, and unlock new revenue opportunities without the need for heavy engineering.
Traditional employees also report payroll mishaps, with 23% citing delayed pay. Freelancers face persistent delays as well, with only 5% reporting timely payments for half their invoices. Branch Embedded aims to make it easier for businesses to provide EWA, which allows workers to collect pay as they earn it. This can help reduce the toll of late payments, particularly for freelancers and independent contractors.
In summary, Branch Embedded is a solution that simplifies payouts and compliance, reducing the burden on businesses. By partnering with Branch, businesses can offer EWA to their employees, helping them avoid borrowing, prevent late fees, and provide a more flexible payroll solution. This not only benefits employees but also improves the ROI for employers.
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