The solution gives users “power of choice and control” over their earned income and provides instant delivery, along with receipts to the sender confirming delivery, according to the news release. It added that a key function of real-time payments for DailyPay users is the ability to get wages instantly without disrupting an employer’s payroll process.
Founded in 2015, DailyPay says its mission is to help workers who deal with financial insecurity in part because their biweekly pay schedules don’t line up with the times when they need money.
“The convergence of mobile technology and digital commerce is leading to real-time payment innovation around the world, which is even more critical as businesses reopen in the wake of the pandemic,” the companies said in the news release. “As digital commerce has grown, there has been a renewed focus on financial inclusion and the challenges facing workers who live paycheck to paycheck.”
With real-time payments, workers can get funds instantly and thus better manage their cash flow and avoid having to resort to using payday loans. DailyPay says it is the first on-demand pay provider to use the RTP network, which is itself the first new payments infrastructure built in the United States in more than four decades.
“Paying workers on demand has taken on a new level of importance during the ongoing pandemic and helps to address cash flow concerns that many workers face on a weekly basis,” said Steve Ledford, senior vice president of product strategy and development at The Clearing House. “DailyPay’s utilization of the RTP network provides a seamless user experience and benefits the worker and the employer.”
Real-time payments of earned income are especially beneficial in the gig economy. A recent PYMNTS report found that 40 percent of gig workers would choose one company over another if it offered faster payments for work completed, and 84 percent said they would do more work if payments were processed more quickly.