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The Rise of Pay-Advance Apps

A growing number of workers are relying on apps such as EarnIn, Brigit and Dave for a quick infusion of cash to cover costs between their paychecks. Now around for about a decade, pay-advance apps enable users to access relatively small amounts of cash before their paycheck hits their bank account. When payday arrives, the service then pulls that amount from their account. The companies typically make money by charging fees for instant transfers and requesting “tips” from users.And as their popularity builds, so does the debate: Are these pay-advance apps a safer solution to financial shortfalls or are they predatory products squeezing fees out of struggling households?

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