Silicon Valley Startup is Rebranding Payday Loans, One Advance At a Time


A Silicon Valley startup is changing the way consumers use payday loans, and is even making the financial industry take a second look at how effective their loan options really are. “Earnin” is the new app that has everyone talking.

Founded by Ram Palanianppan in 2013, Earnin positions itself differently. It does not characterize its advances as a loan, for starters. A spokesperson describes the apps services as “facilitating an advance on your paycheck.” Essentially, the app allows people to quickly and frequently borrow small sums of money.

The idea came about when Palanianppan, who has a background in fintech, was working at a different company. He got in the habit of fronting employees the money they needed to cover expenses before payday after hearing them complain about overdraft fees.

“It didn’t make any sense, because I thought I was paying everybody well,” Palaniappan said, but then he realized the … Read More