To help the community grapple with the impact of COVID-19, Earnin opens unprecedented early access to unemployment benefits
PALO ALTO, Calif.--(BUSINESS WIRE)--Earnin, the leader in innovative solutions to some of the world’s tougher financial problems, today announced it will offer advanced access to unemployment benefits to help people cope with the economic fallout of the COVID-19 crisis. The new feature will allow people to access a portion of their unemployment benefits via the Earnin app, providing an alternative to costly overdrafts. The new feature is available in the Earnin App here.
“This is an industry first, and demonstrates how Earnin is deploying engineering and product resources to meet the rapidly shifting needs of people who find themselves in a new income environment,” said Ram Palaniappan, Founder and CEO of Earnin. “We believe that now, more than ever, it’s important to offer financial tools that are available and accessible for everyone and provide an alternative to costly options such as overdrafts.”
Unemployment Benefits Access Highlights:
- The new feature will be available in select states for Earnin community members who opt for direct deposit delivery of unemployment funds; the feature will not be available to those who receive unemployment benefits through debit cards or by paper checks mailed to a physical address.
- Earnin community members who are already using the app will automatically be eligible if they have unemployment benefits deposited into their accounts. New community members will have to enroll in the app and Earnin will then validate their benefits, which could take up to a few days. Once Earnin receives verification that a new community member has been approved for unemployment benefits, they can get early access to a portion of these funds through the Earnin app.
- The Unemployment Benefits Access feature, like Earnin’s core product, is non-recourse and there are no mandatory fees associated with it. However, people can pay what they believe is fair and leave a tip to cover the cost of the transaction if they choose to do so. Leaving a tip, or not, does not affect access to the service.
Earnin is a community-supported financial platform with a suite of tools that let people take control of their financial future. Earnin started out by solving one of the greatest – and least discussed – inequities in the American financial system: the practice of employers paying workers bi-weekly. Earnin's core product, Cash Out, allows people to access the pay they've already earned. There are no loans or hidden costs. People pay what they choose. Other products include: Balance Shield, which helps prevent overdrafts, a financial calendar that helps people budget and schedule payments, and Health Aid, a service that tries to negotiate unpaid medical bills without charging mandatory fees.
Current funding partners include: Andreessen Horowitz, Matrix Partners, Ribbit Capital, Felicis Ventures and March Capital.