Rethinking the Pay Cycle: The Rise of Earned Wage Access in Bangladesh

For decades, the traditional monthly pay cycle has left millions of low-income workers trapped in a recurring financial squeeze.

In Bangladesh's ready-made garment (RMG) sector, which employs more than 4.4 million people, this outdated wage system forces many to rely on informal lenders and payday advances to cover basic needs and unforeseen emergencies. The financial delay not only undermines workers' well-being but also affects workplace stability and national productivity.

Earned wage access (EWA) offers a timely solution. It allows workers to access a portion of their earned wages before payday, without interest, credit checks or the burden of new debt. Unlike payday loans, EWA simply unlocks wages that have already been earned, restoring dignity and autonomy to workers who need liquidity between pay cycles.

Globally, EWA gained momentum in the 2010s as access to traditional credit declined in the United States. Early adopters such as Uber, Walmart, ADP and Lyft introduced EWA to reduce turnover, ease employee stress and enhance productivity. These early successes demonstrated that timely wage access could be both effective and sustainable.

The model is now gaining traction in emerging markets, particularly in Bangladesh, where the need for financial inclusion is urgent.

Wagely has emerged as a pioneer in introducing the EWA model in Bangladesh. Headquartered in Singapore, the company first launched in Indonesia and selected Bangladesh as its second market in 2021 due to the country's large industrial workforce, favourable digital infrastructure and alignment with inclusive financial goals. Wagely's growth has been supported by strategic investors including Integra Partners, Global Founders Capital, 1982 Ventures and ADB Ventures, the venture arm of the Asian Development Bank.

Wagely now serves more than 365,000 workers across over 150 factories and companies in sectors such as RMG, retail, FMCG, hospitality, footwear, steel and BPO. Its platform enables access to up to 50% of earned wages through a secure digital system integrated with employers' HRIS platforms.

Through its foreign investment in Bangladesh, Wagely has helped create a benchmark for other foreign tech start-ups considering Bangladesh for expansion over larger economies such as the Philippines, Indonesia and Vietnam. Similar entrants would not only bring investment but also transfer technological expertise, generate employment and expand innovative financial solutions for Bangladeshi consumers.

Bangladesh now has several fintech players – including Wagely, Mitro, Ogreem, Agam and EZ Wage – targeting blue-collar workers, especially in the RMG sector, with holistic financial solutions. However, while the country provides PSO, PSP and MFS licences for digital payments and transfers, it lacks a regulatory framework for other fintech activities, including essential services such as EWA, BNPL and book financing.

Even so, the future appears promising. The emergence of open banking, embedded finance and banking-as-a-service signals a more enabling environment for innovation. With the right policy support, solutions such as EWA could play a critical role in strengthening financial inclusion, reducing reliance on informal lending and improving the financial resilience of millions of workers.