To help provide employees with improved financial well-being, DailyPay tapped into Fiserv’s Digital Disbursements offering to allow workers access to their earned, but unpaid, wages. The solution sends these funds quickly and securely through multiple methods instantly, the same day or the next day, according to a case study from Fiserv.
“We live in a world where instant is an expectation,” DailyPay CEO Jason Lee said in the study. “The evolution of the on-demand economy has created a new generation in the workforce who expects to be paid immediately for services rendered. Employees want the financial security of knowing their hard-earned money can be used in case of an emergency or to pay their bills.”
Employees can access the offering through their existing HR platforms and/or via the app from DailyPay. Users tend to make requests when they need money instantly to pay rent before the next payday or when an unexpected expense arises. As a result, Fiserv noted, “the ability to provide employees immediate payments into their account is critical for DailyPay’s business model.”
Through Digital Disbursements, payments can be sent to a bank account at a federally insured financial institution in the U.S. via automated clearing house (ACH) or the NOW Network from Fiserv. Alternatively, payments can be sent through electronic funds transfer networks such as Visa and Mastercard, as well as the Accel debit payments network from Fiserv, STAR Network or PULSE. In addition, payments can be sent via an email address, a mobile phone number or a physical check.
Currently, DailyPay partners report an average adoption rate higher than 30 percent, with more employees opting into direct deposit by enrolling in DailyPay per the case study. At the same time, the company said partners report a 52 percent faster fill rate of open positions compared to companies that do not offer DailyPay. In addition, applicants say they are 1.9 times more likely to apply for a job that offers DailyPay. In total, 94 percent of employees use DailyPay to pay bills, while almost 73 percent of the service’s users report greater control of their finances.