Advancing Worker Financial Health Through Tech Solutions

Q: What has been the biggest challenge in scaling an earned wage access solution in Mexico, a market traditionally known for financial rigidity? 

A: Our biggest challenge was navigating Mexico’s rigid financial and regulatory environment while addressing the needs of both employers and workers. Initially operating in the informal sector exposed us to volatility and high delinquency. The turning point came when we shifted to a three-sided model: formal workers for stability, employers to mitigate risk, and our tech platform to ensure compliance and scalability. 

Data privacy was a critical barrier. Convincing legal teams to share payroll data required end-to-end encryption and anonymization protocols. With this trust, we integrated CURP-based verification and streamlined access. We also designed a simple, accessible interface and chose to operate under a SAPI structure, avoiding the constraints of traditional financial institutions while maintaining robust security. Early adoption was slow due to long sales cycles and market skepticism, but today our model is widely accepted across the corporate sector.

Q: How does your solution address the interplay between Mexico’s formal and informal economies?

A: In Mexico, formal and informal economies often coexist within a single household. While a formal worker may have stable payroll and banking access, their household income frequently depends on informal activities. Our platform facilitates liquidity across these economic spheres by anchoring services in formal employment data to reduce risk, while enabling flexible cash repayments and advances that support broader household needs. This integrated approach allows us to offer structured, low-cost liquidity that acknowledges informal income dynamics and promotes overall financial well-being.

Q: How does financial inclusion benefit companies, and how does ePesos support that within human capital management?

A: Financial inclusion is now a strategic imperative, as economic stress is a leading driver of turnover and disengagement. Our research shows employees view their employer as a trusted financial ally, yet companies often lack the cash flow to offer meaningful support. ePesos addresses this gap by providing 24/7 access to wages with no financial risk to the employer. Our solution is inclusive, independent of credit history or tenure, and cost-effective for workers. For HR leaders, this enhances retention, reduces workforce stress, and positions the company as an employer of choice over predatory lending alternatives.

Q: How did you arrive at the payroll advance solution, and how do you generate long-term value for companies with high turnover and low-wage workers?

A: Our payroll advance solution originated from providing working capital to microbusinesses. A client in security services suggested offering advances directly to their workers, which aligned well with our repayment cycles. By 2019, we focused exclusively on formal private-sector employees, partnering with companies like Uber who granted API access to finance their platform partners. 

We have issued nearly 1 million advances across Mexico, leveraging AI to tailor offers based on salary, tenure, age, and location, ensuring responsible lending. Repayment terms have expanded to 12–18 months to reduce financial pressure, and we recently added savings and investment options with automatic salary deductions. We are exploring pension products to enhance long-term financial wellness, building lasting value for both companies and workers.

Q: What cultural or structural obstacles do companies face when offering payroll-linked savings or deductions through ePesos?

A: The main obstacle is trust and internal communication. Without active HR promotion, employees become skeptical, especially regarding data security in digital environments. When HR champions the program through webinars and clear messaging, participation and engagement increase significantly. Company endorsement builds trust and is essential for successful deployment of our solutions.

Q: Why did you choose a cost-free model for companies, and how is the platform monetized?

A: Our model is cost-neutral for employers. Revenue comes from usage fees paid by workers and revenue-sharing with financial institutions managing savings, as we are not a regulated entity and cannot hold deposits. International lenders fund credit capital, and we retain operational margins. Worker fees are transparent and subscription-like, as employees are only charged for platform use duration. This keeps costs well below traditional credit and payroll-linked bank products. Companies contribute by integrating processes and supporting communication rather than paying fees, enabling scalable, efficient operations.

Q: What educational tools do you offer to support financial and health literacy among workers?

A: We are beginning to integrate educational tools, targeting a 2025 rollout. Driven by employer demand, we aim to complement financial products with tailored education on saving and managing finances. We are vetting partners to ensure high-quality content. This initiative is a near-term strategic priority to deepen employee financial literacy and well-being.

Q: What are the key factors for building scalable, socially impactful tech solutions in Mexico, particularly in financial wellness?

A: Success requires resilience, vision, and a committed team. Our early years were marked by slow growth and challenges like COVID-19, which temporarily reduced revenue by 90%. Maintaining focus, low staff turnover, and mission alignment proved critical. Patient impact investors enabled us to withstand volatility and transition to commercial partners as we scaled. Operational discipline and gradual momentum have resulted in a platform now five times larger than in early 2024, offering expanded savings and investment products institutionally.

Q: What are your top growth priorities for the next 12 to 18 months, whether in product development, customer acquisition, or market expansion?

A: We plan to significantly scale savings and investment offerings and launch financial education powered by AI technologies such as ChatGPT and Gemini. Leveraging extensive user data, we will deliver hyper-personalized, timely guidance to employees, enhancing financial decision making throughout and increasing platform impact.

Q: Why should business leaders prioritize financial wellness among employees?

A: There is a profound disconnect between executives and frontline workers in Mexico, where 80% of formal employees earn under MX$16,000 monthly (US$853), an insufficient amount for families and emergencies. Most workers lack savings or credit and risk food insecurity from unexpected expenses. Our solution addresses this financial and social gap, providing critical relief. Recognizing worker financial stress is both empathetic and strategic. Financial well-being directly affects productivity, retention, and engagement. Our platform creates measurable value by meeting this urgent need with scalable, impactful solutions.

ePesos is an on-demand wage access platform that helps employees cover unexpected expenses without debt. Available 24/7, it offers a no-cost benefit for companies.