Santander Bank Partners With DailyPay to Offer On-Demand Pay

Santander Bank N.A. has partnered with DailyPay to offer an on-demand pay benefit.

With this collaboration, Santander’s Commercial Banking clients in the United States can provide their employees with immediate access to their pay as they earn it, Santander Commercial Banking said in a Wednesday (April 19) post on LinkedIn.

“Clients are increasingly interested in digital products and services that will simplify their banking experience, help them manage their workforces and build their businesses,” Santander Bank Head of Commercial Banking Joe Abruzzo said in the post. “Providing transparency and access to earned pay through this offering with DailyPay will serve as an impactful tool for our business clients who can now offer employees a simple and convenient way to manage their finances.”

In the offering enabled by DailyPay, Santander’s clients can transfer a user’s earned pay to the account of their choice so that it is available to use at any point in the payroll process, according to the post.

The announcement of this collaboration comes about three months after DailyPay raised $260 million and said it would use the new capital to help fuel its domestic growth and invest in product innovation for its on-demand payroll offering.

“On-demand pay has proven to be a transformational financial wellness benefit for employers and their employees, and DailyPay is the proven market leader,” DailyPay CEO Kevin Coop said at the time. “Now, our opportunity lies in capturing more of the market, which is overwhelmingly vast green space.”

PYMNTS research has found that 24% of banks intend to add an early wage access program to their offerings soon, joining the 70% of banks that have already done so.

This strong and growing adoption of early wage access by banks is being driven by their clients, employers, who are looking to reduce workforce attrition at a time when three-quarters of employees say they are looking to change jobs, according to “The Rise of Digital and Early Access Compensation,” a PYMNTS and Ingo Money collaboration.

Early wage access has proven to be a valuable offering for these employers because consumers are looking to improve their financial health while they are living paycheck to paycheck and are being buffeted by inflation, the report said.