Rethinking the pay cycle: The rise of earned wage access in Bangladesh

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For decades, the traditional monthly pay cycle has left millions of low-income workers trapped in a recurring financial squeeze. In Bangladesh's Ready-Made Garment (RMG) sector, which employs over 4.4 million workers, this outdated wage system forces many to rely on informal lenders and payday advances to cover basic needs and unforeseen emergencies. This financial lag not only undermines personal well-being but also affects workplace stability and national productivity.

Earned Wage Access (EWA) offers a timely solution. It enables workers to access a portion of their earned wages before payday without interest, credit checks, or new debt. Unlike payday loans, EWA simply gives access to what has already been earned, restoring dignity and autonomy to workers who need liquidity between pay cycles.

Globally, EWA gained popularity in the 2010s as a response to declining access to traditional credit in the U.S. Early adopters like Uber, Walmart, ADP, and Lyft implemented EWA to reduce turnover, ease employee stress, and enhance productivity. These successes demonstrated that timely wage access could be both impactful and sustainable.

The model is now gaining traction in emerging markets particularly in Bangladesh, where the need for financial inclusion is urgent.

Wagely stepped in as a pioneer to introduce the EWA model in Bangladesh. Wagely Headquartered in Singapore, first launched in Indonesia and chose Bangladesh as its second market in 2021 over other Asian economies due to its large industrial workforce, favorable digital infrastructure, and strong alignment with inclusive financial goals. Wagely's expansion has been supported by strategic investors and shareholders including Integra Partners, Global Founders Capital, 1982 Ventures, ADB Ventures, the venture arm of the Asian Development Bank.

Wagely now serves over 365,000 workers across 150+ factories and companies, across different industries including RMG, Retail, FMCG, Hotel, Footwear, Steel, BPO etc. A simple solution offering access up to 50% of earned wages via a secure digital platform through HRIS integration with the companies

Through its foreign investment in Bangladesh, Wagely has created a benchmark  for other foreign tech startups to choose Bangladesh for investment over other big economies like Philippines, Indonesia, Vietnam for expansion. More such foreign tech startups like Wagely will not only bring foreign investment but shall also import tech knowhow, generate employment and provide innovative solutions for Bangladesh consumers.

There are multiple Fintech players in Bangladesh such as Wagely, Mitro, Ogreem, Agam, EZ Wage who are targeting the blue collar workers particularly in the RMG sector to provide a holistic financial solution.

Bangladesh only provides PSO, PSP and MFS licenses catering to digital payments and transfer but lacks regulatory framework for any other Fintech solutions, especially much needed solutions like EWA, BNPL/Book Financing. However, the future looks brighter with open banking, embedded finance, and banking as a service on the horizon.