More than 10 million Americans were using earned wage access tools in 2024, costing them an average of $208 per year in fees, or about $17 per month. An analysis by the Center for Responsible Lending found that 96% of these direct-to-consumer loans include fees or tips, with an annual percentage rate (APR) of 232%, a level comparable to traditional payday lenders. These apps primarily target workers earning less than $50,000 annually for food and rent expenses, with transaction volume increasing 90% between 2021 and 2022. Economists are also concerned about the broader economic impact, as retailers may raise prices to offset merchant fees charged by these applications.
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