DailyPay is an American financial services company founded in 2015, which provides payroll services such as earned wage access.[2] DailyPay charges up to $3.49 for users to receive 100% of their earned but unpaid income. This fee has been compared to traditional payday lending which has prompted regulatory scrutiny.[3]
| Company type | Private |
|---|---|
| Industry | |
| Founded | 2015 |
| Founder |
|
| Headquarters | New York, NY, U.S.A. |
Key people | Kevin Coop (CEO) Stacy Greiner (COO) |
| Services | Earned wage access |
Number of employees | 800 (2020[1]) |
| Website | www |
History edit
DailyPay was founded in 2015 by Jason Lee and Rob Law.[4] The company allows other organizations and payroll providers to offer early access wages to employees.[5] The service is often used by companies with low-wage employees, who work paycheck-to-paycheck.[6][7]
Employees who use the service are charged a fee to withdraw their wages, if done so by withdrawing instantly.[8] The service also allows users to check their balances and track earned wages through their employers.[citation needed]
In September 2016, the company raised $5 million in financing during its Series A Round.[9][10] In February 2018, the company raised $9 million in Series B funding.[11]
In 2018, human resources company ADP announced that it would be offering early wage access to its clients through DailyPay.[12]
As of 2020, the company had roughly 500,000 active users, and had partnered with companies such as Burger King, Uber, DoorDash and Shiftgig.[13][14]
In 2021, the company received an honorable mention on Fast Company's "World Changing Ideas Awards".[15]
References edit
- ^ "Championing Diversity in FinTech: NYC Based DailyPay". 21 June 2020.
- ^ Kauflin, Jeff. "VCs Bet $40 Million On Money App For Those Living Paycheck To Paycheck". Forbes. Retrieved 2021-05-10.
- ^ Bernard, Tara Siegel (2020-10-02). "Apps Will Get You Paid Early, for a Price". The New York Times. ISSN 0362-4331. Retrieved 2021-06-30.
- ^ "FinTech profile: DailyPay, the payroll game-changer | Venture Capital". www.fintechmagazine.com. Retrieved 2021-05-10.
- ^ Harrison, Polly Jean (2021-01-12). "DailyPay: What The Recent CFPB Compliance Regulations Means for Earned Wage Access". The Fintech Times. Retrieved 2021-05-10.
- ^ Sheng, Ellen (2020-03-30). "Companies offer cash-strapped employees daily pay cards and other flex-pay options as a lifeline". CNBC. Retrieved 2021-05-10.
- ^ "Do paycheck advance apps improve financial health?". American Banker. 2019-03-11. Retrieved 2021-05-10.
- ^ Bernard, Tara Siegel (2020-10-02). "Apps Will Get You Paid Early, for a Price". The New York Times. ISSN 0362-4331. Retrieved 2021-05-10.
- ^ "Funding Snapshot: DailyPay Raises $5M Series A to Provide Daily Payments to Workers". Wall Street Journal. 2016-09-07. ISSN 0099-9660. Retrieved 2021-05-10.
- ^ Noto, Anthony (September 9, 2016). "This week in N.Y.C. funding news: Cheddar, Away, DailyPay". www.bizjournals.com. Archived from the original on 2020-12-05. Retrieved 2021-05-10.
- ^ "DailyPay Just Raised $9M To Provide Flexibility For When You Want to Get Paid". AlleyWatch. 2018-02-21. Archived from the original on 2021-05-10. Retrieved 2021-05-10.
- ^ "Payroll Quietly Easing Into Trend of Quick-Pay Programs". news.bloombergtax.com. Retrieved 2021-05-10.
- ^ Johnston, Katie (February 10, 2020). "Apps let workers access wages instantly, but at what cost?". BostonGlobe.com. Retrieved 2021-05-10.
- ^ Mann, Sonya (2017-09-14). "This Startup Is an ATM for the Money You Haven't Been Paid Yet". Inc.com. Retrieved 2021-05-10.
- ^ "World Changing Ideas Awards 2021: On The Rise (0–4 Years In Business) Finalists and Honorable Mentions". Fast Company. 2021-05-04. Retrieved 2021-05-10.