The Morality of Instant Pay’s Payday App

Instant Financial has launched a new automatic payday application that lets users collect a portion of their bi-weekly paycheck daily if their employer opts into the plan. This application is targeted at, and used primarily by, the lowest income workers.

Advocates of payday apps argue the following: (1) workers gets to see an instant reward for their efforts, prompting them to work more since the reward of labor is more readily apparent; (2) if the worker has trouble living below their means, instant payment for labor is a better bridge than the short-term loan market; (3) the amount that workers can demand is limited to half of the paycheck, in an effort to reduce the likelihood that workers will reach into their rent funds; and (4) hey, workers are adults that should be permitted the autonomy to make decisions on their own behalf.

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