| Formerly | ActiveHours |
|---|---|
| Industry | |
| Founded | 2013 |
| Founder | Ram Palaniappan (CEO) |
| Headquarters | Palo Alto, California |
| Services | Earned wage access |
Number of employees | 200+ (2021) |
| Website | www |
EarnIn is an earnings management company that offers a suite of tool designed to give customers more control over their pay and financial standing. Founded by Ram Palaniappan in 2013 as Activehours, the company launched its app in May 2014 to provide earned wage access services. [1] [2] [3]
Since then, EarnIn has expanded its offerings to include Early Pay, a product that enables people to access their paycheck up to 2 days early, Live Pay, a product that enables people to stream their pay, and other features including free credit monitoring, balance alerts, bill reminders, savings features, and more. [4] [5] [6]
Earnin was founded by Ram Palaniappan in 2013. [7] [6] Palaniappan, who helped launch RushCard, wanted to help people unlock their earned wages. [5]
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 had grown to 250 employers including Best Buy, Starbucks, Wells Fargo, and Bank of America. [5] [8] [9]
In November 2017 the company rebranded from Activehours to Earnin. [9]
In 2017 and 2018, Earnin raised $164 million across two rounds of fundraising, with venture capital firm A16z participating in both rounds. [10]
In 2019, there were also consumer complaints about glitches sometimes resulting in delays in fund transfers. [1]
In 2019, Earnin acquired Chicago-based company, Tip Yourself. In May 2020, Earnin integrated the service into their own app. Tip Yourself is a tool that provides members with "Tip Jars" that they can set up for specific savings goals such as “a trip, home improvement projects or a rainy day fund.” [2]
In January 2023, the company rebranded from Earnin to EarnIn. [11]
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. [12]
In May 2024 EarnIn created a $50,000 fund to help cover overdraft charges incurred by its previous customers in the state of Connecticut. [13] [14]
EarnIn offers a suite of mobile financial tools designed to give customers flexible access to their earnings and support overall financial wellness. The app is available to customers who are at least 18 years old, paid on a consistent schedule, have a U.S. bank account, and earn at least $320 per pay period. Services are available regardless of employer or banking provider, no interest is charged, and no credit check is required. [15] After a member's scheduled wages are deposited in their bank account by their employer, the company automatically withdraws the wages and the tip. [16] [1] [8] [17] EarnIn's "zero integration" B2B model, which allows companies to offer EarnIn without requiring that it be integrated into a company's payroll system. [18]
The Balance Shield service helps prevent overdraft fees by alerting customers when checking account balances fall below a certain threshold, regardless of where they bank, and when bills are due. [19]
EarnIn’s Cash Out feature allows customers to access earned wages before their designated payday. In return for this access, EarnIn deducts an equal amount from a customer's bank account on their designated payday. EarnIn allows access of up to $150 per day, or $750 per pay period. [20]
EarnIn's Credit Monitoring allows customers to access their credit score through the EarnIn app for free. The service displays a mini version of a credit report that includes creditor history, usage, open accounts, payment history, and fraud alerts. [21]
EarnIn's Early Pay feature automatically deposits customer's paychecks up to two days in advance. The service costs US$2.99 per paycheck and can be turned off at any time. [22] [23]
EarnIn's Live Pay feature allows customers to access their earned wages in real time as they work, eliminating the need for a traditional pay cycle by continuously streaming earned income to the EarnIn Card. Customers can access up to $1,500 per pay period without interest or a credit check. [24]
EarnIn allows customers to use the Tip Yourself service, which automatically saves between $1 to $100 daily in up to five Tip Jars. Tip Yourself money is held at Evolve Bank & Trust and is FDIC insured. [25]
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. [26] [1] 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. [27] New York State subpoenaed information from the company, including a calculation of annual percentage rates if tips were measured as fees or interest. [1]
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. [28] The case was dismissed after determining that EarnIn's advances were not loans. [29]
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. [30]
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%. [31]
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. [32] According to the complaint, the employee had submitted numerous reports to internal management and HR without meaningful response. The plaintiff was allegedly terminated shortly after notifying law enforcement and federal agencies, including the FBI and Vermont Attorney General's Office. 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. [33] The suit remains active as of early 2025.
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