Picture this: you’re a few days away from payday, but your car breaks down and you need to fix it right away. You don’t have enough money in your checking account to cover the repair, so you take out a high-interest payday loan. A few weeks later, you’re hit with another unexpected expense and have to take out another payday loan. This cycle can be incredibly costly and difficult to break free from. But what if there was an easier way? DailyPay is on a mission to build a new financial system that puts an end to expensive payday loans!
What is DailyPay?
DailyPay is a technology company that partners with America’s best-in-class employers to provide on-demand pay. The company has connections directly into the banking system, which means that money is always in the right place at the right time for employees, merchants, and financial institutions. DailyPay is building technology and the mindset to reimagine the way money moves, from the moment work starts.
These data connections allow employees to keep track of their pay as it happens, instead of having to wait 2 weeks to see what they’ve made. It also makes it possible for employees to gain access to that pay when they need it, not when the employer is ready to let them have it.
How does DailyPay work?
DailyPay works by connecting to over 6000 endpoints in the banking system. This allows DailyPay to instantly transfer money to employees, merchants, and financial institutions. They also have a massive data network that helps to ensure that money is always in the right place at the right time.
Let’s say you work for Dollar Tree, one of the companies that DailyPay currently works with. You’re on an hourly pay scale, and you work 8 hours today. When you open the app, you can see exactly how much money you earned today, as well as the other days in this current pay period, down to the minute. This is because the platform is connected directly into Dollar Tree’s payroll and timecard system.
On your way home, you go into the grocery store to get supplies for dinner, but discover that you’re a little short because of an unexpected expense last week, and you don’t get paid until Friday. DailyPay allows you to transfer money directly from your current payroll into your checking account to be able to pay for the groceries – all while you’re standing in line.
Why is DailyPay different?
DailyPay is different because it offers a better way to manage money. With the platform, employees can get paid instantly when they need it instead of having to wait until payday. This makes it easier for people to cover unexpected expenses without resorting to high-interest payday loans. Plus, DailyPay is the recognized gold standard in on-demand pay, so employers can be confident that they are providing employees with a top-notch payment solution.
In the above example, without access to the platform, you would have to find the money somewhere else or skip the grocery run entirely. The alternative would have been to go to a payday loan place and pay a large percentage of your check to be able to get the short-term loan. In the case of DailyPay, it comes out to only a couple of dollars for the transfer with no interest – because it’s already your money.
To learn more about the platform, each over to the company’s website.
Interview by Scott Ertz of F5 Live: Refreshing Technology.
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