Below is our recent interview with Kevin Coop, Chief Executive Officer at DailyPay:
Q: Could you provide our readers with a brief introduction to DailyPay?
A: DailyPay’s mission is to change the financial system by rewriting the invisible rules of money. Our core product, on-demand pay, gives workers transparency, choice and control over their finances by providing access to their pay as they earn it.
DailyPay partners with leading employers to offer our services as a benefit to employees, which keeps them more engaged at work. The average turnover rate improved by 35% for workers with DailyPay’s earned wage access solution.
In addition to improving our employer clients’ bottom line, DailyPay delivers the most secure, compliant and seamless on-demand pay experience in our rapidly growing industry.
We are not just creating a platform that transforms payday, we are creating one that levels the playing field and treats each and every participant equally.
DailyPay, powered by its industry-leading technology platform, is on a mission to build a new financial system for everyone. DailyPay delivers the industry’s leading on-demand pay solution with modern, insight-driven pay strategies that help America’s leading employers to activate their workforce and build stronger relationships with their employees, so they feel more engaged, work harder, and stay longer. Through its massive data network, proprietary funding model and connections into over 6,000 endpoints in the banking system, DailyPay works to ensure that money is always in the right place at the right time for employers, merchants, and financial institutions.
Q: Why is now the right time for DailyPay amid uncertain economic times?
A: High inflation is making it tough for many American workers to cover their expenses and save for the future. Workers are struggling to make ends meet. A recent study found that 22% of hourly workers say they have taken out a payday loan this year, including nearly one-third (31%) of those aged 18 to 34. Furthermore, in a recent survey conducted with the Harris Poll, nearly three-quarters (72%) of employed Gen Zers say having access to their pay every day, as opposed to waiting until a scheduled payday, would help them pay bills on time. The gratifying news to share is that when employees have access to DailyPay, they have the ultimate control over their financial health and well-being.
Looking for an effective way to help their employees navigate these challenging times, an increasing number of employers are offering on-demand pay as a financial wellness benefit. It’s no surprise that America’s leading employers from Kroger to Hilton are now offering DailyPay to empower their employees with this powerful, transformational financial wellness benefit.
Q: Tell us about the DailyPay marketplace and why so many banks and financial institutions are now recognizing the value of earned wage access?
A: The DailyPay Marketplace enables an opportunity for banks, fintechs and all kinds of financial services providers to participate in the on-demand pay movement. By participating in the DailyPay Marketplace, partners will gain access to DailyPay’s proprietary on-demand pay capabilities at the intersection of payroll and banking. Banks and financial institutions can participate in the DailyPay Marketplace either with their own branding through a white-label partnership or by becoming part of the DailyPay ecosystem which is a turnkey solution with no technical build.
Partnering with the leader in on-demand pay further establishes these firms as innovators in their space, by offering this high-demand consumer benefit to their users. This will drive new account growth and enhanced consumer engagement by extending the exceptional user experience and financial wellness that DailyPay delivers. The first financial institutions we partnered with include forward-thinking industry leaders PNC and TD Bank.
Q: What new innovations at DailyPay would you like to share?
A: In an effort to provide financial equity to millions of Americans, in particular to the many who are unbanked or underbanked, DailyPay launched Friday–a new general purpose reloadable (GPR) prepaid card and app that makes financial transparency and control available to millions of hard-working Americans. Friday offers the benefits of banking with no minimum balance requirement and no maintenance fees. With Friday, users have no-fee instant access to their earned wages which empowers them with financial control and allows them to avoid having to use expensive alternatives such as payday loans. Payday loans and overdraft fees have been a financial plague on underserved communities for far too long. DailyPay is disrupting those predatory industries with an innovative product that allows workers to access their earned pay before an arbitrary payday so bills can be paid on time.
Q: What is the best thing about DailyPay that people might not know about?
A: DailyPay helps employees save an average of $1,205 per year in late fees, overdraft fees and payday loan fees. Aite-Novarica Group’s research shows that 95% of those who were previously reliant on payday loans in any way either stopped using payday loans or reduced use after using DailyPay. In addition, 97% of those who said they had overdrawn their bank account before using DailyPay now rarely or never incur overdraft fees after using DailyPay.
DailyPay helps users improve their credit, build savings, and feel more financially capable and independent by reducing the need to rely on payday loans, pay advances, or personal loans from family and friends. The mission-driven innovation DailyPay created is an important part of how we improve people’s lives every day.