These apps allow workers to get paid between paychecks. Experts say there are steep costs
NEW YORK (AP) — When Anna Branch, 37, had her hours at work reduced at the start of the pandemic in 2020, she suddenly noticed ads for an app called EarnIn.
“You know how they get you — the algorithms — like they’re reading your mind,” Branch said. “The ad said I could get up to $100 this week and repay it in my next pay period.”
Branch, who was working as an administrative assistant in Charleston, South Carolina, downloaded the app, agreed to the flat fee, and added the suggested “tip.” The cash helped her cover expenses until payday, when the app debited the borrowed $100, plus $18 for the fee and tip. Four years later, Branch said she still uses the app, as often as once a month.
EarnIn is one of more than a dozen companies that provide this service, billed as Earned Wage Access. The apps extend small short-term loans to workers in between paychecks so they can pay bills and meet everyday needs. On payday, the user repays the money out of their wages. Between 2018 and 2020, transaction volume tripled from $3.2 billion to $9.5 billion, according to Datos Insights.
Related articles
US officials warn of increase in bacterial illnesses that can lead to meningitis and possibly death
NEW YORK (AP) — U.S. health officials are warning of an increase in rare bacterial illnesses than ca2024-04-24
Rustle these up with Rosemary: Carrot cake with orange buttercream and walnuts
In her new book, chef Rosemary Shrager guides you through tried and tested recipes that she vows wil2024-04-24I refused to accept my neighbour's parcel
If you've ever become fed up with your doorbell constantly pinging because your neighbours have volu2024-04-24The Iron Claw review: The Big Daddy of wrestling movies
The Iron Claw (15, 132 mins)Rating:Of all the American families whose fame crossed the Atlantic — th2024-04-24Artist Natalia Rak not told her Dunedin mural would be painted over
Now and then: Natalia Rak's mural has been painted over. Photo: RNZ / Tess Brunton / Natalia Rak2024-04-24Masterful meals: Masterchef 2014 Champion Ping Coombes's nasi goreng with sambal belacan
Roast pheasant, chocolate roulade and this sublime soup... a new book features spectacular dishes fr2024-04-24
atest comment