The American Fintech Council (AFC), the premier industry association representing responsible fintech companies and innovative banks, has announced that ZayZoon has become its newest member.
A leading Earned Wage Access (EWA) provider for small and mid-sized businesses, ZayZoon will join a growing group of diverse industry-leading EWA companies creating safe, transparent and affordable financial options for consumers.
“ZayZoon is the perfect example of a responsible innovative fintech company creating new tools to help small businesses and empower employees,” said Phil Goldfeder, Chief Executive Officer of the AFC. “As the trade association already representing the largest share of EWA providers, AFC has established important standards for the emerging industry already safely serving millions of families. The AFC and its members use these standards to help guide the public policy landscape across the country at both the state and federal levels, alike. ZayZoon adds an important voice to the growing coalition, and we are excited for our future collaboration.”
ZayZoon is the financial empowerment platform for small and mid-sized businesses. They enable employees to access wages that they have already earned when they need it and serve as an important alternative to arbitrary pay periods and high-cost predatory options. ZayZoon is free for employers and takes only 30 minutes to implement. The platform also offers educational resources and tools to help workers break the paycheck-to-paycheck cycle.
According to a ZayZoon study:
● 89% of employees who use ZayZoon report less financial stress
● 74% of customers say ZayZoon has helped them reduce payday loan usage
● 75% say ZayZoon has helped reduce Overdraft fees
“ZayZoon is proud to join the American Fintech Council (AFC) and help advocate for innovative products that give consumers more options and a chance at better financial outcomes. AFC’s mission to provide a transparent, inclusive and a customer-centric financial system aligns with ZayZoon’s mission to improve employee financial health,” said Darcy Tuer, CEO of ZayZoon.
EWA is a payroll innovation that enables workers to access wages they have already earned when they need it and serves as an important alternative to arbitrary pay periods and high-cost predatory options. Responsible, affordable, and transparent EWA companies are democratizing financial services and disrupting broken legacy systems that have historically put employees at a disadvantage.
As the premier trade association representing EWA providers, AFC has worked to promote and advocate for industry best practices and consumer protections. AFC has publicly advocated for a clear and consistent regulatory framework for EWA that avoids duplicative or diverging requirements and accurately reflects the nuances of the financial service.
In their recently released industry standards, AFC makes it clear that EWA is not a loan and should not be regulated as such. Unlike a loan, EWA services provide employees access to wages they have already earned prior to arbitrary biweekly or monthly pay periods. Additional standards include strong transparency and disclosures, non-recourse, no interest, late fees or penalties, no debt collection, no credit reporting, no collection activity of any kind, and a requirement that a “no cost” option be offered to all EWA customers.