Earlier this week, the Consumer Financial Protection Bureau (CFPB) issued an advisory opinion clarifying that certain earned wage access (EWA) products are not considered credit and are not subject to Regulation Z under the Truth in Lending Act. By distinguishing EWA from traditional credit products, the CFPB affirmed that responsibly structured EWA allows employees to access wages they have already earned, without being treated as a loan, which helps preserve access to these employer-enabled benefits.

Green Dot and its rapid! platform support employer-enabled wage access solutions designed to help Americans better align their income with everyday expenses, reduce reliance on higher cost alternatives, and improve financial stability. Demand for EWA continues to grow according to recent national research, with 65% of workers saying it is very important to them and 63% reporting a more positive perception of their employer when EWA is offered, underscoring its value for both employees and businesses.

“Employees today expect agile, tech-forward solutions and seamless access to their earned wages, which EWA delivers,” said Crystal Bryant-Minter, Senior Vice President and General Manager of Employer Solutions at Green Dot. “We welcome this clarity from the CFPB as we believe it will help extend these types of solutions to more employees. At rapid!, we're committed to offering simple, smart and secure tools that help employers support their workforce on a daily basis.”

For more information on how Green Dot and rapid! support earned wage access and modern payroll solutions, visit www.rapidpaycard.com/.