For many Americans, the holidays are truly “the most wonderful time of the year.” But oftentimes, it’s also the most expensive and can lead to budgeting issues in the New Year.
On average, Americans spend roughly $1,000 celebrating the holidays. And this year, despite inflation – consumer spending is up. Most notably, spending is up 25% for those low-income earners – likely due to the fact that people spent less during the pandemic years.
But what does this mean for after the holidays? For many, it means increased credit card debt. Looking back to 2021, more than one-third of Americans incurred debt from holiday shopping, averaging nearly $1,250, according to a survey conducted by LendingTree.
How on-demand pay can help
Knowing that holiday debt may be a pain point for your employees in 2023, how can you help? One way is by providing on-demand pay.
What is on-demand pay?
On-demand pay, also known as earned wage access (EWA), is a payroll benefit that allows employees to access their wages as they are earned.
At Edenred, this plan is known as AnytimePay.
The benefits of AnytimePay
Of course, employees will feel the advantages of adding AnytimePay to their benefits portfolio well past the holiday season.
Some of the significant benefits to employees include:
- Access to money faster – With AnytimePay, the days of employees needing to wait two weeks for their next deposit are gone. Instead, they can instantly add funds from their next paycheck to a prepaid card with the click of a button. All they need to do is log into the Edenred Benefits app and choose a funding amount (up to their available limit). That’s it. Payments are then available in seconds and processed within the same pay cycle — the amount is then deducted from employees’ next paycheck.
- Better budgeting – Employees can use the prepaid card to help pay for groceries, food at restaurants, and even food deliveries – which then allows funds to be freed up to pay more toward those pesky credit card bills.
For employers, Edenred Benefits provides a payroll deduction file to process payroll deductions made through the app and make automatic ACH transfers. This process benefits employers in several ways:
- Gives employees freedom – Your employees will feel more empowered and valued if they can control when they receive their paycheck funds. Being valued can directly impact employee productivity – and your bottom line.
- Improves employee retention – Employees whose employers implement on-demand pay are likely to interpret that act as proof that their employer cares about their well-being and will be more likely to stay in their position.
How Edenred can help
If you’re interested in offering AnytimePay to your employees, we’d love to help. This valuable benefit will certainly be attractive to those who have incurred credit card debt this holiday season – but the benefits will truly last all year. Book a meeting with us today to get started.