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
The government wants to buy their flood
HOUSTON (AP) — After the floodwaters earlier this month just about swallowed two of the six homes th2024-05-21Brazil government wants all local soccer suspended due to massive floods in the south
PORTO ALEGRE, Brazil (AP) — Brazil’s government urged the country’s soccer officials to suspend all2024-05-21U.S. House votes to kill motion to remove Speaker Mike Johnson
WASHINGTON, May 8 (Xinhua) -- The U.S. House of Representatives on Wednesday overwhelmingly voted to2024-05-21Clarke Schmidt shuts down Rays, Anthony Rizzo drives in both runs in Yankees' 2
ST. PETERSBURG, Fla. (AP) — Clarke Schmidt allowed five hits in 6 2/3 innings, Anthony Rizzo homered2024-05-21Ben Whishaw lights up the Croisette as he joins his co
Ben Whishaw was all smiles at the world premiere of Limonov: The Ballad at the 77th annual Cannes Fi2024-05-21Santana hits tiebreaking HR as Twins beat Blue Jays for 16th win in 18 games
TORONTO (AP) — Carlos Santana hit a tiebreaking home run in the fifth inning, Joe Ryan pitched a sea2024-05-21
atest comment