Missouri becomes second state in the nation to implement robust standards for Earned Wage Access products

Bipartisan legislation balances necessary consumer protection with access to safe, transparent and affordable access to financial services

Jefferson City, MO (July 7, 2023) – The American Fintech Council (AFC), the premier industry association representing responsible fintech companies who deliver critical access to safe, transparent and affordable financial services, applauds Missouri Governor Michael Parson for signing Earned Wage Access (EWA) bill into law. The AFC collaborated with its members and a diverse coalition of stakeholders to advocate for important regulatory standards for EWA companies that will help protect Missouri consumers.

“As one of the first states in the nation to embrace regulatory standards for the EWA industry, Missouri is at the forefront of responsible innovation creating access to safe financial services,” said Phil Goldfeder, Chief Executive Officer of the American Fintech Council. “Missouri families should have the ability to access the wages they have already earned from responsible companies that are providing an alternative to high-priced payday and other predatory options.”

Similar to legislation recently passed in Nevada and signed into law by Governor Joe Lombardo, the new law in Missouri requires state licensing for all EWA providers, including those who integrate with employers and companies that offer services direct to consumers. The bill codifies industry best practices and consumer protections, including strong transparency, non-recourse, no late fees, 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 users.

“Payactiv is proud to support this high-standard bill, which creates new consumer protections for Missourians and a strong framework for the EWA industry to continue to innovate and grow,” said Molly Jones, Vice President of Government Affairs at Payactiv. “As the second bill to pass this year, it is clear that policymakers across the states have recognized EWA is a unique, innovative financial product that does not fit into legacy frameworks and requires its own registration or licensing system.”

“DailyPay is proud to be part of the broad coalition supporting the latest bipartisan earned wage access law enacted in Missouri on July 6th,” said Ryan Naples, Director of Public Policy at DailyPay. “As with Nevada’s first-in-the-nation EWA licensing law that was similarly bipartisan and signed in June, the Show Me State’s SB 103 also regulates EWA as its own financial product that includes strong consumer protections.”

“It is estimated that over 130,000 Missourians have used an EWA product, and over 600 employers offer it to their employees,” wrote AFC in their joint industry letter. “Without this critical service, Missouri workers would have to wait weeks to see the benefits of working an extra shift, but with EWA, they can access those funds immediately.”

The Nevada and Missouri bills received broad bipartisan support and create an important blueprint for EWA regulation that other states can adopt.