These apps allow workers to get paid between paychecks. Experts say there are steep costs

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. “THEY GET YOU HOOKED” Sheri Wilkins, 60, who works as a home health aide in College Station, Texas, said she’s used the apps since 2020, and that she feels “dependent on the money.” The healthcare contractor that employs Wilkins offers DailyPay, and Wilkins typically uses the app to transfer the amount of that day's wages twice a day — once after each of her two shifts, for which she's paid separately. A spokesperson for DailyPay said in a statement that the app offers two option with no fees to most users and a third with what they described as a "small ATM-like fee.” Matt Bahl, who researches workplace issues for the Financial Health Network, said the growth of the Earned Wage Access industry is a symptom of widespread financial insecurity. CONVENIENCE AND NO CREDIT CHECK Penny Lee, head of the Financial Technology Association, an industry group, says more people are turning to Earned Wage Access as a convenience that allows them to make up for the “disconnect between what the consumer needs to be able to spend … and their pay cycle.” Like Buy Now, Pay Later loans, the apps don’t run credit checks and bill themselves as interest-free. Rep. Bryan Steil, R-WI, one of the federal bill’s backers said, it will “ensure workers across the country can continue to use these services, which help them to better connect work to reward.” But Hawaii State Sen. Chris Lee, a Democrat who introduced regulation targeting Earned Wage Access in the state Senate, called the 300-plus percentage interest rates a “modern payday loan scheme.” Lee said he would like to see more transparency and worker protections.