Payfare Announces Intention to Expand into Earned Wage Access Market

The total addressable market for EWA of 131 million people in the US and 22 million people in Canada represents a significant growth opportunity for Payfare

TORONTO, April 5, 2023 /CNW/ - Payfare Inc. ("Payfare" or the "Company") (TSX: PAY), a leading fintech powering instant payout and digital banking solutions for the gig workforce, today announced its intention to expand into the high growth Earned Wage Access (EWA) market. As a pioneer of providing instant pay after every task and rewards-rich loyalty programs for gig economy workers, Payfare intends to use its technology forward card issuance and digital wallet platform to provide employees access to the same benefits in both the United States and Canada.

The opportunity ahead is significant, with a total addressable market (TAM) in the United States of over 131 million people earning less than $75K annually¹, over 78 million hourly wage workers², and 12 million people drawing on payday loans once a year³. In Canada, over 22 million people earn under $75K annually⁴. Personal budget shortfalls are an important issue as 44% of workers have less than $500 saved for unexpected expenses on essential items such as gas, groceries, rent, and utility bills⁵. Payfare believes simply providing access to wages that have already been earned can assist workers in this scenario while reducing reliance on predatory consumer credit products.

Employers that offer EWA programs to their workers also realize benefits in increased worker retention and satisfaction. Approximately 76% of workers believe it is important that their employer provides access to EWA⁶, and 79% would consider switching to an employer with an EWA program⁵. Offering such a benefit can improve the financial health of employees, while improving engagement and productivity.

With over 1 million active users, Payfare believes its experience and track record in partnering with the largest global gig platforms to achieve the goal of financially empowering their workforces, makes it well positioned to assist full time employers as well.

"We don't believe payday loans should exist in the modern world with real time integration to payroll records as well as the capability to repay at source," said Marco Margiotta, CEO and Founding Partner of Payfare. "We have built an award-winning digital banking product⁷ that has helped our gig platform partners reduce their worker acquisition costs and boost productivity. Providing these same benefits to employees and employers is a massive opportunity set ahead of Payfare with a TAM of over 131 million people in the US. We look forward to sharing progress on our expansion into EWA over the course of 2023." 

About Payfare (TSX:PAY)

Payfare is a global financial technology company powering digital banking and instant payment solutions for today's gig workforce. Payfare partners with leading platforms and marketplaces, such as Uber, Lyft and DoorDash, to provide financial health for their workforce.

For further information please visit www.payfare.com.

Forward-Looking Information

This press release contains forward-looking information within the meaning of applicable securities legislation, which reflects Payfare's current expectations regarding future events as of the date hereof. Such forward-looking information may include but are not limited to statements regarding expansion into the high growth Earned Wage Access market, reducing a worker's reliance on predatory consumer credit products, Payfare being well positioned to assist full time employers, and the Company being able to execute on its 2023 plans to make progress in the Earned Wage Access vertical. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Payfare's control, that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks include the factors discussed under the "Risk Factors" section in Payfare's MD&A for the year ended December 31, 2022. Other factors that could cause actual results or events to differ materially include the inability of Payfare to launch and market its new EWA programs or platforms that are planned in a timely manner, the lack of experience or resources to enter into the Earned Wage Access vertical, Payfare's inability to manage the increased volume of new cardholder sign-ups, active users or transactions, the decline in third party ranking of Payfare's mobile apps, the impact of inflation and rising costs of goods and services on Payfare's business model which may impact management's expectations on active user growth in the year 2023 and beyond, management's sizing of the opportunity and EWA TAM being incorrect, the imposition of new restrictions related to the COVID-19 pandemic, Payfare's ability to finance and support new programs and platforms, and a general decline in the credit markets, economy or confidence in the banking sector in North America. Accordingly, readers should not place undue reliance on forward-looking information. Payfare does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

	^1Social Security Administration 2021 Wage Statistics.
	^2US Bureau of Labor Statistics 2022.
	^3CFPB Market Snapshot: Consumer use of State payday loan extended payment plans.
	^4Statistics Canada.
	^5Visa Insights Earned Wage Access Report.
	^6Earned Wage Access: Tapping into the Potential of Flexible Pay for Today's World of Work report by ADP Inc.
	^7DasherDirect by Payfare was ranked the #1 finance app in the US in December and August 2022 by unitQ, a product quality monitoring platform which conducts rankings based on user feedback data from app store reviews and social media.

SOURCE Payfare

Cihan Tuncay, Head of Investor Relations and Corporate Development, 1 [phone], [email protected]