Money20/20: DailyPay Disrupts Global Wage Access
In an exclusive interview at Money20/20 USA, DailyPay's latest strategic moves reveal an ambitious push to revolutionise how workers across the globe access their earned wages.
The American fintech firm is expanding its on-demand pay platform internationally as it seeks to address what it calls 'the last thing people wait for in life' - their wages.
Breaking Into the UK Market
The company, which enables employees to access their earned wages before traditional payday, has recently launched operations in the United Kingdom, where workers typically face even longer pay cycles than their American counterparts.
“In the UK, people are waiting a month or more for their paycheck. Think about if you start a new job - you're waiting almost two months for that first paycheck,” says Stacy Greiner, CEO of DailyPay.
This stands in stark contrast to what modern consumers have come to expect in other aspects of their lives. “You don't wait for food, you don't wait for your shows. Even when you're sick, you just get on telemedicine. But the thing that people work the hardest for, they're waiting two weeks or more to receive.”
The True Cost of Delayed Wages
The implications of delayed pay cycles extend beyond mere inconvenience. In the United States alone, financial stress and related productivity losses cost employers approximately US$9tn annually.
“When you're living paycheck to paycheck, there's actually a very counterintuitive thing that happens - it actually gets harder to work,” Stacy explains.
“People may not have petrol to put in the car to get to work, pay for the bus ticket, or pay for the childminder. A lot of times they'll call in sick to work a gig job that day so they can get paid that night.”
For employers, particularly those managing frontline workers, DailyPay's solution appears to be yielding significant results. The platform has demonstrated a 72% reduction in staff turnover across its client base.
“Recruiting and retaining frontline workers is always a hard challenge for employers,” says Stacy. “They can now literally put a sign out that says 'work today, get paid today.' When you're in control of how you earn and manage your money, you feel like your employer is on your side.”
“When you're living paycheck to paycheck, there's actually a very counterintuitive thing that happens - it actually gets harder to work”
Expanding Beyond Simple Wage Access
The company's recent partnership with Visa marks a significant evolution in its service offering. The collaboration introduces international remittances, enabling users to send money to recipients in 70 countries.
This expansion comes at a time when the demand for flexible payment solutions is growing globally. DailyPay's platform is transforming the traditional linear process of earning, receiving, and managing money into a more dynamic, real-time system.
“If you think about how employees went to work, they eventually got paid, then they needed to manage their money and pay bills and send money to others after that - it was a very linear process,” says Stacy.
“What we're doing is consolidating that all down into a very real-time motion. People go to work and in that day, they can manage whatever they need to in that day's moment.”
**************
Make sure you check out the latest edition of FinTech Magazine and also sign up to our global conference series – FinTech LIVE 2024.
**************
FinTech Magazine is a BizClik brand.
