{{Short description|American financial services company}} {{Infobox company | name = EarnIn | logo = EarnIn Logo.png | former_name = ActiveHours | industry = {{Unbulletedlist|Financial services|Financial technology}} | founder = Ram Palaniappan (CEO) | founded = {{Start date and age|2013}} | hq_location = Palo Alto, California | area_served = North America | services = Earned wage access, Payroll, Credit report monitoring, Bank account | num_employees = 200+ | num_employees_year = 2021 | website = {{URL|https://www.earnin.com/}} }}
'''EarnIn''' is an earnings management company that provides earned wage access services and other financial and payroll-related services.<ref name=":5" /><ref name=":2" />
Founded by Ram Palaniappan in 2013 as Activehours, the company launched its app in May 2014 to provide earned wage access services, and has since expanded to include services including free credit monitoring, balance alerts, bill reminders, savings features, and payroll.<ref>{{Cite web |last=Debter |first=Lauren |title=Want To Cash In On Your Paycheck Before Payday? There's An App For That |url=https://www.forbes.com/sites/laurengensler/2014/08/07/cash-in-on-your-paycheck-before-payday-theres-an-app-for-that/ |access-date=2020-11-11 |website=Forbes |language=en}}</ref><ref name=":1">{{Cite news |last=Lapowsky |first=Issie |date=2015-08-05 |title=The Next Big Thing You Missed: Startup Offers Payday Advances Without the Pesky Loan-Sharking |url=https://www.wired.com/2014/08/activehours/ |url-status=live |archive-url=https://web.archive.org/web/20140827073207/https://www.wired.com/2014/08/activehours/ |archive-date=2014-08-27 |access-date=2025-11-06 |work=Wired}}</ref><ref name=":0">{{Cite news |last=Carrns |first=Ann |date=2014-05-22 |title=Getting Your Wages, Before Payday |url=https://www.nytimes.com/2014/05/24/your-money/getting-your-wages-before-payday.html |access-date=2020-11-11 |work=The New York Times |language=en-US |issn=0362-4331}}</ref><ref name=":5">{{Cite web |last=Crosman |first=Penny |date=2019-04-03 |title=A payday lender in disguise? New York investigates the Earnin app |url=https://www.americanbanker.com/news/a-payday-lender-in-disguise-new-york-investigates-the-earnin-app |url-status=live |archive-url=https://web.archive.org/web/20250823215737/https://www.americanbanker.com/news/a-payday-lender-in-disguise-new-york-investigates-the-earnin-app |archive-date=2025-08-23 |access-date=2020-11-11 |website=American Banker |language=en}}</ref><ref name=":2">{{Cite web |last=Rubin |first=Ben Fox |title=You can hire this startup -- for free -- to negotiate down your medical bills |url=https://www.cnet.com/news/you-can-hire-this-startup-for-free-to-negotiate-down-your-medical-bills/ |access-date=2020-11-11 |website=CNET |language=en}}</ref>
== History == Earnin was founded by Ram Palaniappan in 2013.<ref name=":10">{{Cite web |last=Valle |first=Gaby Del |date=2019-05-22 |title=How a Silicon Valley startup is trying to rebrand payday loans |url=https://www.vox.com/the-goods/2019/5/22/18636049/earnin-app-startup-payday-loans-fintech |url-status=live |archive-url=https://web.archive.org/web/20190531183907/https://www.vox.com/the-goods/2019/5/22/18636049/earnin-app-startup-payday-loans-fintech |archive-date=2019-05-31 |access-date=2020-11-11 |website=Vox |language=en}}</ref><ref name=":0" /> Palaniappan, who helped launch RushCard, wanted to help people unlock their earned wages.<ref name=":1" /> EarnIn operates in the earned-wage access (EWA) industry, providing workers with on-demand access to wages they have already earned, but would otherwise wait to receive on payday.<ref name="davis2025">{{Cite web |first=Jonathan |last=Davis |date=15 August 2025 |title=The case for earned wage access |url=https://www.paymentsdive.com/news/earned-wage-access-opinion-worker-pay-alternative/757794/ |access-date=2026-01-14 |website=Payments Dive |language=en-US}}</ref> The service is not a loan, because the money is already earned and there is no interest charge or mandatory fee in many cases.<ref>{{Cite web |last=DeMarco |first=Jacqueline |date=2019-07-08 |title=Earnin app review: Paycheck advances |url=https://www.creditkarma.com/personal-loans/i/earnin-app-review |access-date=2026-01-14 |website=Intuit Credit Karma |language=en-US}}</ref> By providing pay-earlier access, EarnIn addresses the cash-flow gaps and timing mismatches that some hourly workers experience, and reduces reliance on credit cards, payday loans, or overdrafts.<ref name="davis2025" />
After a member's scheduled wages are deposited in their bank account by their employer, the company automatically withdraws the wages and the tip.<ref name=":17">{{Cite web |first=Matthew |last=Manos |date=24 November 2025 |title=How the Pay What You Want Model Can Work For You |url=https://www.bizjournals.com/bizjournals/how-to/growth-strategies/2015/11/how-the-pay-what-you-want-model-can-work-for-you.html |url-status=live |archive-url=https://web.archive.org/web/20210421110457/https://www.bizjournals.com/bizjournals/how-to/growth-strategies/2015/11/how-the-pay-what-you-want-model-can-work-for-you.html |archive-date=2021-04-21 |access-date=2020-11-11 |website=www.bizjournals.com}}</ref><ref name=":5" /><ref name=":3" /><ref name=":16">{{Cite web |date=2019-05-08 |title=The Rise of Digital Tipping — From Music to Your Own Paycheck |url=https://www.ozy.com/around-the-world/the-rise-of-digital-tipping-from-music-to-your-own-paycheck/93993/ |access-date=2020-11-11 |website=OZY}}</ref><ref name=":7">{{Cite web |last=Renzulli |first=Kerri Anne |title=EarnIn App Review |url=https://www.businessinsider.com/personal-finance/personal-loans/earnin-review |access-date=2025-09-23 |website=Business Insider |language=en-US}}</ref> EarnIn uses a "zero integration" B2B model, which allows companies to use EarnIn without integrating it into their payroll system.<ref>{{Cite web |last=Balogh |first=Shannen |title=This startup has raised $190 million from investors like Andreessen Horowitz to help workers get paid in between paychecks. Its head of B2B explains why it's introducing a 'zero integration' model. |url=https://www.businessinsider.com/earnin-payroll-advance-partnership-employers-2020-2 |access-date=2025-09-23 |website=Business Insider |language=en-US}}</ref>
After a year of development, Earnin launched its app in May 2014. At launch, the company was handling transactions for employees at 100 different companies; a few months later, this increased to 250 employers including Best Buy, Starbucks, Wells Fargo, and Bank of America.<ref name=":1" /><ref name=":3">{{Cite web |last=Shieber |first=Jonathan |date=2017-09-21 |title=Activehours raises $39 million for its new take on cash advances |url=https://techcrunch.com/2017/09/21/activehours-raises-39-million-for-its-new-take-on-cash-advances/ |url-status=live |archive-url=https://web.archive.org/web/20250922091826/https://techcrunch.com/2017/09/21/activehours-raises-39-million-for-its-new-take-on-cash-advances/ |archive-date=2025-09-22 |access-date=2020-11-11 |website=TechCrunch |language=en-US}}</ref><ref name=":4">{{Cite web |last=Clark |first=Kate |date=2018-12-20 |title=Earnin raises $125M to help workers track and cash out wages in real time |url=https://techcrunch.com/2018/12/20/earnin-raises-125m-to-help-workers-track-and-cash-out-wages-in-real-time/ |url-status=live |archive-url=https://web.archive.org/web/20250823231636/https://techcrunch.com/2018/12/20/earnin-raises-125m-to-help-workers-track-and-cash-out-wages-in-real-time/ |archive-date=2025-08-23 |access-date=2020-11-11 |website=TechCrunch |language=en-US}}</ref>
Originally known as Activehours, the company rebranded to Earnin in November 2017.<ref name=":4" />
In 2017 and 2018, Earnin raised $164 million across two rounds of fundraising, with venture capital firm A16z participating in both rounds.<ref>{{Cite web |last=Pearson |first=Jake |date=2025-11-05 |title=Tech Billionaire Marc Andreessen Bet Big on Trump. It’s Paying Off for Silicon Valley. |url=https://www.propublica.org/article/trump-cfpb-marc-andreessen-silicon-valley |url-status=live |archive-url=https://web.archive.org/web/20251106052711/https://www.propublica.org/article/trump-cfpb-marc-andreessen-silicon-valley |archive-date=2025-11-06 |access-date=2025-11-06 |website=ProPublica |language=en-US}}</ref>
In January 2023, the company rebranded from Earnin to EarnIn.<ref>{{Cite web |last=Gramatikova |first=Tsani |date=2023-02-21 |title=EarnIn Unveils a New Strategic Brand Identity That Highlights Its Mission To Alleviate Financial Anxiety |url=https://smartbranding.com/earnin-unveils-a-new-strategic-brand-identity-that-highlights-its-mission-to-alleviate-financial-anxiety/ |access-date=2025-08-20 |website=Smart Branding |language=en-US}}</ref>
In September 2023, EarnIn abolished $22 million in medical debt in Phoenix, Las Vegas, and San Antonio.<ref>{{Cite web |date=2023-11-16 |title=EarnIn abolished $22 million in medical debt in Phoenix, Las Vegas and San Antonio |url=https://www.benefitnews.com/news/earnin-abolished-22-million-in-medical-debt |access-date=2026-03-25 |website=Employee Benefit News |language=en}}</ref> In 2024, EarnIn furthered its debt relief efforts by partnering with Forgive Co. Together, the two forgave over $10 million in debt held by those living in metro Atlanta.<ref>{{Cite news |last=Kanell |first=Michael E. |title=Company pays off debts of Atlantans in ‘random acts of kindness’ |url=https://www.ajc.com/news/atlanta-news/company-pays-off-debts-in-random-acts-of-kindness/ZLY5W2XPVJEIDDWL4RMOQGZXIM/ |access-date=2025-09-04 |work=The Atlanta Journal-Constitution |language=English |issn=1539-7459}}</ref>
In May 2024 EarnIn created a $50,000 fund to help cover overdraft charges incurred by its previous customers in the state of Connecticut.<ref>{{Cite news |last=Haar |first=Dan |title=Dan Haar: Finance firm banned from CT is giving away $50K to former customers as legislation fails |url=https://www.ctinsider.com/politics/article/earned-wage-access-giveaway-19444438.php |archive-url=https://web.archive.org/web/20250630070119/https://www.ctinsider.com/politics/article/earned-wage-access-giveaway-19444438.php |archive-date=2025-06-30 |access-date=2025-09-23 |work=CT Insider |language=en}}</ref><ref>{{Cite web |last=Ragland |first=Jamil |date=2024-05-02 |title=Company That Advances Workers' Pay Offers Refund For Fees After Halting Service |url=https://ctnewsjunkie.com/2024/05/02/company-offers-refund-for-fees-after-halting-service/ |access-date=2025-09-23 |website=CT News Junkie |language=en-US}}</ref>
In 2018, Andreessen Horowitz was among the investors backing EarnIn as part of the company's growth-stage funding rounds.<ref>{{Cite web |last=Clark |first=Kate |date=2018-12-20 |title=Earnin raises $125M as paycheck advance app continues rapid growth |url=https://techcrunch.com/2018/12/20/earnin-raises-125m-as-paycheck-advance-app-continues-rapid-growth/ |website=TechCrunch |access-date=2024-01-01}}</ref>
Over time, EarnIn expanded its platform beyond earned wage access to include additional financial tools and payroll-related services. These include overdraft alters, paycheck advance features, credit monitoring, savings tools, and employer payroll software. The company has also introduced products including Balance Shield, Cash Out, Early Pay, Tip Yourself, and EarnIn Payroll.<ref name=":7" /><ref>{{Cite web |last=Valle |first=Gaby Del |date=2019-05-22 |title=How a Silicon Valley startup is trying to rebrand payday loans |url=https://www.vox.com/the-goods/2019/5/22/18636049/earnin-app-startup-payday-loans-fintech |access-date=2025-11-05 |website=Vox |language=en-US}}</ref><ref>{{Cite web |last=Renzulli |first=Kerri Anne |title=EarnIn App Review |url=https://www.businessinsider.com/personal-finance/personal-loans/earnin-review |access-date=2025-08-28 |website=Business Insider |language=en-US}}</ref><ref>{{Cite web |date=2020-03-31 |title=Earnin Review: Pros, Cons, And Alternatives |url=https://thecollegeinvestor.com/33351/earnin-review/ |access-date=2025-10-14 |language=en-US}}</ref><ref>{{Cite web |last=PYMNTS |date=2025-03-18 |title=EarnIn Debuts Early Pay For Faster Paycheck Access |url=https://www.pymnts.com/personal-finance/2025/earnin-debuts-early-pay-for-faster-paycheck-access/ |access-date=2025-11-05 |website=PYMNTS.com |language=en-US}}</ref><ref>{{Cite web |date=2025-03-21 |title=EarnIn aims to fill gap left by banks, launches Early Pay |url=https://www.americanbanker.com/payments/news/earnin-launches-early-pay-for-paychecks |access-date=2025-11-05 |website=American Banker |language=en}}</ref> Tip Yourself money is held at Evolve Bank & Trust and is FDIC insured.<ref>{{Cite web |date=2020-04-08 |title=EarnIn App Review [2025]: Get Paid Faster |url=https://financebuzz.com/earnin-app-review |access-date=2025-11-05 |website=FinanceBuzz |language=en}}</ref>
EarnIn's Payroll is a payroll software platform that integrates payroll processing with HR, time and attendance, benefits, and employee self-service functions.<ref>{{Cite news |last=Limonta-Volkova |first=Ilona |title=Why Are Earned Wage Access Companies Like EarnIn Moving Into Payroll? |url=https://www.forbes.com/sites/ilonalimonta-volkova/2025/10/22/why-are-earned-wage-access--companies-like-earnin-moving-into-payroll/ |access-date=2025-12-10 |work=Forbes |language=en}}</ref>
In March 2026, EarnIn's Live Pay had processed over one million transactions since its 2015 launch.<ref>{{Cite web |last=Limonta-Volkova |first=Ilona |title=EarnIn Hits One Million Live Pay Transactions As Real-Time Pay Moves From Novelty To Norm |url=https://www.forbes.com/sites/ilonalimonta-volkova/2026/03/11/earnin-hits-one-million-live-pay-transactions-as-real-time-pay-moves-from-novelty-to-norm/ |access-date=2026-05-29 |website=Forbes |language=en}}</ref>
== Legal challenges == In April 2019, the New York State Department of Financial Services investigated whether the company's "tipping" system skirted New York State lending laws regulating payday lending.<ref name=":11">{{Cite web |last=Dugan |first=Kevin |date=2019-03-28 |title=Cash-advance app Earnin gets subpoenaed by NY regulator: source |url=https://nypost.com/2019/03/28/cash-advance-app-earnin-gets-subpoenaed-by-ny-regulator-source/ |access-date=2021-04-07 |website=New York Post |language=en-US}}</ref><ref name=":5" /> An article in the ''New York Post'' said that members who do not leave tips may have their monthly maximum restricted, which may trigger interest rate disclosure laws.<ref name=":6">{{Cite web |last=Dugan |first=Kevin |date=2019-03-22 |title=Popular cash advance app Earnin operating in payday loan 'gray area,' critics claim |url=https://nypost.com/2019/03/21/popular-cash-advance-app-earnin-operating-in-payday-loan-gray-area-critics-claim/ |access-date=2020-11-11 |website=New York Post |language=en-US}}</ref> New York State subpoenaed information from the company, including a calculation of annual percentage rates if tips were measured as fees or interest.<ref name=":5" />
In November 2024, the Attorney General for the District of Columbia filed a lawsuit against EarnIn, alleging that the company deceptively marketed its earned wage advance services.<ref name=":12">{{Cite web |title=Activehours, which makes every day a payday, just raised $22 million in Series A funding |url=https://techcrunch.com/2017/01/09/activehours-which-makes-every-day-a-payday-just-raised-22-million-in-series-a-funding/ |access-date=2020-11-11 |website=TechCrunch |language=en-US}}</ref> The case was dismissed after determining that EarnIn's advances were not loans.<ref>{{Cite web |last=Kauflin |first=Jeff |title=MoneyLion Accused Of Trapping Borrowers With Misleading Claims And Illegal Loans In Baltimore City Lawsuit |url=https://www.forbes.com/sites/jeffkauflin/2025/10/07/baltimore-city-lawsuit-accuses-fintech-moneylion-of-preying-on-borrowers/ |access-date=2025-10-24 |website=Forbes |language=en}}</ref>
In March 2021, a federal court granted final approval of a $12.5 million settlement in a class action lawsuit against EarnIn, in which plaintiffs claimed that the company’s practices led to overdraft fees on their bank accounts.<ref name=":13">{{Cite web |date=March 25, 2021 |title=Perks et al v. Activehours, Inc., No. 5:2019cv05543 - Document 63 (N.D. Cal. 2021) |url=https://law.justia.com/cases/federal/district-courts/california/candce/5:2019cv05543/347707/63/ |work=Justia}}</ref>
In August 2024, a class-action lawsuit was filed in the U.S. District Court for the Northern District of California against EarnIn. The plaintiffs alleged that the company's optional fees and tips constituted hidden interest payments, violating Georgia's Payday Loan Act and the federal Truth in Lending Act (TILA). The complaint highlighted that EarnIn's fees and tips led to APRs averaging 284%.<ref name="consumerfinancialserviceslawmonitor_2024-08">{{Cite web |last=Rosenblum |first=Taylor Gess, Carlin McCrory, Caleb Rosenberg, Jeremy |date=2024-08-22 |title=Class Action Alleging Usurious Fees and Tips Filed Against FinTech Provider of Earned Wage Access Services |url=https://www.consumerfinancialserviceslawmonitor.com/2024/08/class-action-alleging-usurious-fees-and-tips-filed-against-fintech-provider-of-earned-wage-access-services/?utm_source=chatgpt.com |access-date=2025-03-31 |website=Consumer Financial Services Law Monitor |language=en-US}}</ref>
In 2024, a wrongful termination lawsuit was filed in Vermont Civil Court by a former EarnIn employee alleging retaliation after reporting months of harassment and threats by users of the platform.<ref>{{Cite web |title=Register of Actions |url=https://portal.vtcourts.gov/app/RegisterOfActions/#/B47553D5434B1FEEEB7C8D834B7D8169D7F283C48E86A33ACB67F5FB6227FA29/anon/portalembed |access-date=2025-03-31 |website=portal.vtcourts.gov}}</ref> The suit remains active as of early 2025.
In 2024, another employment-related lawsuit (''Castro v. Activehours, Inc.'') was filed in California state court, alleging wrongful termination after bringing concerns over data leaks and security and privacy.<ref>{{Cite web |title=Case 24STCV32469 Kelvin Evelio Castro Vs Activehours, Inc., Et Al. - Trellis: Legal Intelligence + Judicial Analytics |url=https://trellis.law/case/24stcv32469/kelvin-evelio-castro-vs-activehours-inc-et-al |access-date=2025-03-31 |website=Trellis.Law |language=en}}</ref> The suit remains active as of early 2025.
==References== {{Reflist}}
Category:Financial services companies established in 2013 Category:Financial software companies Category:Earned Wage Access Category:Financial technology companies based in California Category:Payroll Category:Banking