Apart from the earned wages functionality, the card also provides cardholders with free instant DailyPay transfers, and it allows them to access a network of no-fee ATMs. Moreover, the card is linked to a mobile banking platform that lets customers track their income and spending habits.
According to paymentsdive.com, DailyPay pointed to rising inflation and increasing interest rates as the main reasons why workers in the United States need access to these financial tools. Using on-demand pay tools such as early wage access, employees can make use of their wages earlier than usual and avoid late charges. According to DailyPay, the new prepaid debit card is also compatible with Apple Pay, Google Pay, and Samsung Pay.
Almost 100 consumer protection organisations, including the NAACP and the National Consumer Law Center, sent an open letter to the Consumer Financial Protection Bureau in October 2021. In the letter, the organisations asked the agency to review the on-demand pay industry’s fees and to regulate fee-based earned wage access products as credit.
The organisations also urged the Bureau to supervise fee-based earned wage access providers under the CFPB’s authority over payday loans, to conduct research on the impact of earned wage access programs, and to terminate or significantly revise the Advisory Opinion Program and Compliance Assistance Sandbox program.
In June 2021, DailyPay has teamed up with PNC Bank and The Clearing House to offer real-time payments over the RTP network. An attribute of real-time payments for DailyPay users is the ability to receive earned wages without disrupting the employer's normal weekly or biweekly payroll administration and process.
In January 2022, DailyPay launched a digital wallet with a DailyPay Balance feature that enables users to see their accounts being topped up in real-time. According to the company, most employees that have access to their services check their daily balance eight times a week.
By leveraging this solution, employees are more likely to avoid payday loans or overdraft fees. According to DailyPay's research, employees who are less stressed are more engaged and productive at work. The system aims to create a frictionless personal finance experience by connecting to over 6,000 financial institutions supporting any bank account, debit card or prepaid card.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now