Salarify Introduces Earned Wage Access to Italy: Ciao Italia, Salarify is Here!
The labor market has undergone significant changes in recent years, constantly evolving and adapting to new dynamics. However, there is one aspect that has remained unchanged for decades: the traditional monthly wage payment system.
The Salarify team raises a pertinent question:
“Why should we wait an entire month to receive our hard-earned wages?”
With the rapid advancement of digital financial solutions, money flows around the world at an unprecedented pace. Yet, the payroll operations continue to work on outdated models, keeping wages static. This static nature of wage payments fails to align with the evolving consumer habits, which demand dynamism and immediate services.
The answer to this challenge is "Earned Wage Access" (EWA), a flexible wage access solution brought to Italy by Salarify, following its successful launch in Hungary. Founded in 2019 by Bence Radák and Paolo Petrolini, Salarify now boasts a team of 25 professionals and is excited to conquer the Italian market.
How does EWA work?
Employees gain access to Salarify Pay as part of their comprehensive employee benefits package. They can sign up within seconds using their tax ID number, then they have access their earned wages at any time. By seamlessly integrating with leading payroll and attendance tracking softwares, our platform monitors the progress of users' earned wages. It's important to note that Salarify Pay is not a loan; instead, it empowers individuals to access their rightful earnings in a flexible and convenient manner.
EWA's Success in the United States: 56 Million Users, $9.5 Billion Accessed In 1 Year
According to a recent analysis by Payment Dive, EWA solutions - started to make waves just a decade ago - have been utilized 56 million times in the United States in 2020, accounting for a staggering total of approximately $9.5 billion. Visa reports that 95% of employees express higher motivation to work for companies that provide EWA. In the United States, where EWA was first introduced in 2012 by PayActiv, over 25 million individuals regularly avail of this service, primarily employees of major corporations such as Walmart and McDonald's, who are paid biweekly. Astonishingly, 40% of workers in this environment struggle to handle unexpected expenses of $400.
The Expansion of EWA in Europe and Italy
The situation in Europe, including Italy, mirrors the challenges faced in the United States. A report by JP Morgan reveals that 45% of Europeans witness their expenses growing at a faster rate than their income. To cope with inflation, 33% resort to utilizing their savings accumulated during the COVID-19 pandemic, while 25% turn to borrowing. Italy's labor market is characterized by stagnant wages and precarious employment contracts.
Salarify Pay caters to companies of all sizes and sectors within Italy, aiming to address these challenges head-on. Currently, the service is especially popular among workers in logistics, manufacturing, automotive, and tourism sectors. Several financial institutions in Italy and Europe have already expressed keen interest in integrating Salarify's service into their digital platforms.
"The introduction of Salarify Pay to the Italian market presents an opportunity for both companies and employees. EWA has already benefited millions of workers in other markets, providing them with easy and immediate access to their earned wages before payday, reducing financial stress and preventing indebtedness. On the business side, we have observed that it can enhance payroll automation, promote organizational well-being, and foster agility," stated Paolo Petrolini, Co-Founder and COO of Salarify.
In countries where EWA has gained significant traction, such as the UK and the US, a study conducted by DailyPay revealed that this service improves productivity by alleviating the stress associated with financial difficulties, which can otherwise hinder concentration and result in absenteeism. The advantages of EWA extend beyond employees to employers as well: employees view EWA as a highly valuable benefit and are more eager to work for companies that offer such flexibility. This is particularly crucial in a post-pandemic world where the talent shortage stemming from the "big quit" phenomenon presents a significant challenge.
Salarify is a leading provider of earned wage access solutions in Europe, empowering employees to access their earned wages when they need them. Founded in 2019, Salarify has rapidly expanded to bring its innovative platform to Italy following its successful launch in Hungary. With a mission to modernize wage payment systems, Salarify is transforming the way employees access and manage their money.