Deliver a Better Borrower Experience with Paycheck-Linked Lending

What is this white paper about?

In the era of ACH and paper checks, the two-week pay cycle made sense, but today’s workers need access to funds that match our subscription lifestyle—an avalanche of due dates that correspond to signups, not payday. Unfortunately, very few employers offer hourly or daily payouts even though the technology currently exists to make this possible.

Earned wage withholding generates an enormous opportunity for predatory products offering short-term cash so Americans can pay bills and avoid penalties like overdrafts or utility disconnect fees. The average payday loan can carry an APR of 400%, but because more than 50% of Americans live paycheck to paycheck and may have thin or no credit history, there is often nowhere else to turn.

Enter paycheck-linked lending—a financial service that relies on securing repayment directly from a borrower’s paycheck, providing a less risky payment method to underwrite—actual earnings versus a bank account balance (i.e. ACH debit).

In this white paper, learn how:

  • Paycheck-linked lending helps consumers end the cycle of predatory lending
  • You can increase approval rates and reduce the risk of missed payments and overdrafts with a modern solution to the two-week pay cycle
  • Turnkey, customizable API requires less technology investment, expands your products and customers, and reduces regulatory risk