Copyright forbes
EarnIn's move to infrastructure offers a playbook for fintechs. EarnIn built its business by providing earned wage access to workers by letting them tap their paychecks before payday. Now, the company is becoming the payroll system itself. The fintech announced today the launch of EarnIn Payroll, positioning itself as a full payroll provider rather than just an earned wage access overlay. It is already in use with over 10,000 companies utilizing the service pre-launch. It is a bold move that other early-stage fintechs should study closely. The strategy represents a broader trend of fintech companies moving from feature to infrastructure, owning the entire stack rather than sitting on top of someone else's platform. If EarnIn succeeds, it could redefine how workers get paid and prove that consumer fintech companies can compete in enterprise software. This is a playbook that all fintechs can learn from. Why Earned Wage Access Companies Are Moving Upstream The strategic logic here is textbook vertical integration. The earned wage access market has always been friction-heavy. Workers download an app, connect their bank account, verify employment, and navigate a third-party system just to access money they've already earned. By becoming the payroll provider, EarnIn eliminates that friction entirely. "Paychecks today are digital, and they should work like other digital products: flexible and like streaming," said Ram Palaniappan, CEO and Founder of EarnIn. “You work every day, but you get paid every two weeks. Let’s make your phone do exactly the same thing with text messages. Your phone says type in your messages every day and every two weeks I’ll send it out. Would you use that?” This move addresses EarnIn's biggest vulnerability: dependency on someone else's infrastructure. Payroll providers like ADP and Gusto could build flexible pay features themselves, cutting earned wage access companies out entirely. By owning the payroll layer, EarnIn controls its own destiny. MORE FOR YOU The earned wage access market is projected to grow from $6.2 billion in 2024 to over $61 billion by 2034. This represents a sizable opportunity. It is also why moving upstream makes strategic sense. Why EarnIn Might Actually Pull This Off EarnIn has prioritized a seamless user experience in its product development. Here is what distinguishes EarnIn from most payroll startups: the app has been downloaded more than 27 million times by individuals who already trust it with their financial lives. This creates a powerful referral engine. If even 10% of those users work at companies considering new payroll systems, EarnIn suddenly has bottom-up demand that traditional payroll providers can not match. There is also timing. The payroll market is ripe for disruption. Remote work has exposed the limitations of legacy systems. Younger workers expect financial flexibility as a baseline, not a perk. According to an ADP study, 76% of employees across all age groups say earned wage access is important, and 59% of millennials prioritize jobs that offer it. EarnIn also benefits from what they have already built. Their compliance infrastructure for earned wage access (understanding labor laws, wage calculations, and state regulations) translates directly to payroll operations. In other words, EarnIn is not starting from scratch; it is scaling from a foundation few others possess. The Challenges Are Real But Manageable In spite of digital advances, many employees continue relying on digital checks. Yes, payroll is competitive. Yes, switching costs are high. Yes, ADP and Paychex have decades of operational muscle. But those same arguments were made against Gusto when they launched in 2011. Traditional players said small businesses would never switch from ADP. Gusto proved them wrong by building a better product for a specific customer segment. EarnIn’s wedge is similar. They are targeting employers who care about worker financial wellness and retention. In a tight labor market, particularly for hourly and frontline workers, flexibility is a competitive advantage. 80% of American workers live paycheck to paycheck, and financially stressed employees are twice as likely to seek new employers. The questions around EarnIn’s business model are valid, but they are not insurmountable. The company has a clear path to monetization by charging employers standard payroll fees while continuing to offer workers fee-free access to their earned wages. The value proposition is straightforward: improved retention, reduced turnover, and a more satisfied workforce. After all, employers already invest in benefits that deliver far less measurable returns. What Early-Stage Fintechs Can Learn From Earned Wage Access EarnIn's move offers three critical lessons for other fintechs. Own Your Distribution. If you are building on top of banks, payroll systems, or other platforms, have a plan for owning more of the stack. Depending on someone else's infrastructure is a rental agreement, not ownership. Leverage Your User Base. EarnIn’s 27 million downloads represent advocates. Bottom-up enterprise sales (workers demanding tools from employers) is one of the most powerful go-to-market strategies in B2B software. If this is part of your infrastructure, it can be a strategic strength hiding in plain sight. Time Your Move. When asked about advice for fintechs considering infrastructure plays, Palaniappan was clear: "I would say always to be close to what the customer wants and then to recognize what technology can now do that is not being used widely and that if you did that it would be a much better outcome for the customer." EarnIn did not launch payroll on day one. They built a massive user base, proved the earned wage access model, and established operational credibility first. The earned wage access space is watching this closely. If EarnIn sticks the landing, it could mark a turning point for fintech. The next wave will belong to builders who think in platforms, not features. Editorial StandardsReprints & Permissions
