ThriveGlobal: On-demand pay aligns perfectly with employee financial wellness programs

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2020 has been an incredibly challenging year for all of us. One meaningful takeaway that we collectively learned during the global health crisis is to appreciate the efforts of everyday workers. From the nurse putting in 16-hour days to the grocery clerk doing a double shift, we acknowledged that our heroes don’t all wear capes. Back in January, right before the COVID-19 pandemic hit us, an article written by the CEO of JUST Capital Martin Whittaker caught my attention. This article was all about raising awareness of employees’ financial struggles, and I was excited to see initiatives that PayPal implemented to help their financially stressed employees. 

Today, I’m really encouraged to see PayPal CEO Dan Schulman take a stand in support of the American Worker by offering his employees on-demand pay.

The news that PayPal is implementing an on-demand pay benefit is not surprising as it fits right in with the fact that many fintech CEOs have a long history of being champions for supporting the financial wellness of employees. Those initiatives include everything from lowering their healthcare costs to increasing pay to creating educational programs on financial planning and health. 

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Global FinTech Series

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How can FinTechs and Payroll Providers Enable Better Capabilities to Help Employees Manage and Access their Earned Pay

There have been countless variables for how the “new normal” is impacting this subsector of FinTechs. Digital acceleration has taken place in telehealth, insurance claim scanning, contactless payments and now on-demand pay. Specifically, on-demand pay ensures employees  feel safe and empowered with these new digital experiences, including instant-pay apps on mobile devices.

Why on-demand pay, though? The current bi-weekly payroll cycle has failed to timely and financially cover employees’ necessary and unexpected emergency costs. COVID was an awakening for businesses to abandon the antiquated payroll process and migrate to a digital, contactless pay solution which provides employees access to their earned pay and eliminates the typical two-week wait time until payday. Speed and safety are prioritized through digitization which ends up saving everyone valuable time and money. If you can change the cycle of payments — and make the money earned available when it is needed — you can remove the financial stress of waiting.

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DailyPay has been named winner of the 2020 QSR Applied Technology Awards

Awards

DailyPay has emerged as a vital part of the tech stacks of the majority of leading brands in the U.S., saving them a significant amount of money each year.  Many restaurant chains, large and small, struggle with employee retention. But, with DailyPay’s on-demand pay ecosystem, DailyPay partners have seen as high as a 72 percent reduction in turnover rates and have saved millions of dollars. According to a recent study, 56 percent of employees have been motivated to pick up more shifts after having access to an on-demand pay solution and 1 in 6 now seek a job with an on-demand pay benefit.

DailyPay, a recognized gold standard of the on-demand pay industry, has been named winner of the 2020 QSR Applied Technology Awards Crew-Facing Category. The award speaks to DailyPay’s unwavering commitment to providing first-class full service to seven of the top 10 restaurant chains in the U.S including and more.

FinTechZoom: Changing Pay Experience

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The global pandemic was a wake-up call for companies nationwide. It was a time of realization for antiquated business processes. On the top of the list was “pay.” Not just the delivery of it, but the entire pay experience. And within months, we saw employers of all shapes and sizes adopting a new way to pay called on-demand pay (and sometimes earned wage access). And once they offered this benefit, these businesses realized reduced turnover, increased productivity and a more engaged, satisfied and financially secure workforce.

One expansive effect of this health crisis is the realization that life happens between paydays — especially when faced with needing cash to buy medicine, food or other necessities. It is no longer a viable option to expect your employees to wait every two or even four weeks to have access to the money they’ve earned. 

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SuperbCrew Magazine Interview with Jason Lee

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Q: Could you provide our readers with a brief introduction to DailyPay?

A: In 2015, I realized there was a big problem for anyone who received a paycheck. Payroll technology was controlling how families live and pay their bills, instead of the workers determining how and when they access the money they worked so hard to make. There had to be a better way. Despite living in an era of incredible technological advances, I realized there was still this profound need for working Americans to have access to their earned pay that would give them financial flexibility and empowerment over their money. So I took an in-depth look at how people were paid in this country. I saw an opportunity for change — and DailyPay was born. My first thought was to build completely from the ground up, to truly start from scratch.

By creating DailyPay, that’s exactly what we did. In 2016, we designed an unrivaled ecosystem (we call PayExTM) featuring a unique “pay experience” that benefits the employee and the employer. DailyPay offers employees choice and control over when and how they receive their earned pay. Unlike other providers, we support every aspect of the employee’s pay experience from payroll processing to pay access and even call center support. Our ecosystem unlocks the abilities for employers and employees to enjoy control and choice over their earned income.

In just a few years DailyPay was recognized as the gold standard in the industry with over 80% of Fortune 100 companies that offer an on-demand pay benefit using DailyPay as their provider.

• PAY: Employees can control how and when they get paid with instant access to earned income, transparent fees and 24/7/365 access to 100% of their earned income
• SAVE: Employees can save their pay in three different ways — scheduled automatically, based on pay period earnings and/or at the time of an instant pay transfer
• REWARD: Employers can reward their employees in an on-the-spot, compliant way (i.e., for taking on an extra shift when a coworker calls out)
• CYCLE: Employers can easily and immediately process off-cycle payments (ex. missed shifts/termination pay)

The secret behind our success with PayEx is the finely thought out methodology in terms of both our product and the entire customer journey, from start to finish. We are a full service on-demand pay provider – a major differentiator with other providers. We take pride in delivering the “gold standard” of service to our partners and is the reason we are the top choice for Fortune 500 companies.

Read the full interview here

Enterprise Talk: Interview with Jason Lee

interviews

“Ultimately, offering a real-time payment solution is a powerful way to strengthen the bond between enterprises and their employees while saving organizations time and cost. Choosing the right vendor will ensure that enterprises can offer this exciting new benefit (and reap its rewards) without compromising on security,” says Jason LeeCEO Of DailyPay, in an exclusive interview with EnterpriseTalk.

The New York Times: Apps Will Get You Paid Early, for a Price

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Pay-advance apps have been downloaded millions of times, and more employers are offering them as benefits to workers who need cash.

Americans have become accustomed to summoning just about anything on demand, from groceries to car rides. Now it’s just as easy to get paid when you want.

As the coronavirus pandemic squeezes household budgets, workers and employers alike are increasingly turning to pay-advance apps. They allow users, for a sometimes-optional fee, to request money ahead of payday. One even briefly offered a program for those waiting for slow-to-arrive jobless benefits.

And many customers see them as lifelines.

“I turned to those pay-advance apps to compensate where I couldn’t,” said Tasha Ayala-Spain, an American Airlines employee from Upper Darby, Pa., whose hours were slashed this year. She has used Dave and Earnin to get advances of up to $200 per pay period.

“It wasn’t like a loan to a bank,” said Ms. Ayala-Spain, who sometimes worked 50-hour weeks before the pandemic, loading and unloading baggage, mail and medical equipment from airplanes. “You don’t have to pay interest.”

The appeal is obvious: For a few dollars or less, users can cover a bill that comes due in the middle of a pay cycle or get cash for an unexpected expense, like a wildfire or hurricane evacuation. By tapping their earned but unpaid income early, they can avoid overdraft fees, late charges or worse — more predatory lenders. And come payday, the advance is repaid from their bank account or directly from their paycheck.

But these services, which millions have downloaded, come with question marks. Some customers have sued, regulators across the country are looking into their practices, and consumer advocates fear that the apps are glossy packaging for the kind of lending that can leave users stuck in an expensive cycle of debt.

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