The funding is split between new term loan funding from SVB Capital and a fund managed by Neuberger Berman, as well as revolving credit facility capacity provided by Barclays and Angelo Gordon.
100 million dollars from Barclays, 60 million from Angelo Gordon, and 100 million dollars in term loan funding from SVB make up the capital infusion. The increased revolving credit facility capacity gives DailyPay more money to service its steadily expanding clientele. The USD 100 million in term loan capital will be used to support DailyPay's ongoing product innovation and to accelerate growth.
The on-demand payment platform is made to enable businesses to empower their staff and build stronger bonds with them. Its goal is to develop a new financial system that benefits everyone.The online marketplace for SAP and partner solutions, SAP Store, has just lately made DailyPay's on-demand pay solution accessible. Customers receive earned salary access, often known as on-demand pay, through this. Employees can obtain early access to their earned money through earned wage access.
Friday Visa prepaid card and app are DailyPay's most recent additions. Employees can now instantly access their earned salary without paying a fee. In addition to the ability to access earned wages, the card gives cardholders access to a network of fee-free ATMs and free quick DailyPay transfers. Additionally, the card is integrated with a mobile banking system that enables users to monitor their earnings and spending patterns.
DailyPay unveiled its digital wallet solution in January 2022 for regular working Americans who are struggling financially as a result of the pandemic. Every day a user works, the DailyPay digital fills itself, updating the user's pay balance in real time. The user's usable DailyPay Balance is always increasing as long as they work for an organisation that uses DailyPay, doing away with the need for a regular paycheck.
In the same month, DailyPay released an update to its digital wallet that gave users the ability to see their accounts get topped off in real time. The DailyPay Balance feature gave participating firms the option to permit employees to get their paychecks sooner than once per month or once every two weeks. The company provides free next-day salaries via alliances with 6,000 banking 'endpoints' or wage service partners.
Earned wage access (EWA) is effective in any industry where wages are not immediately paid, and it performs best when it can serve sizable populations of underprivileged workers. The less people have to save up for their daily expenses before receiving their paychecks, the more important EWA becomes. This usually refers to industries in developed economies with a sizable blue-collar workforce.
EWA gives employees more control over their money so they may pay for everyday expenses like groceries and bills. However, it can also help them become more financially stable overall.
The majority of American employees struggle to make ends meet. Late payments and unpaid bills can lower a person's credit score and increase the risk of service termination. Credit cards or payday lenders, which often feature high interest rates and fees, are options for workers who need rapid cash.Your employees may be able to avoid late fees, bank overdraft charges, payday loan or credit card interest by having access to on-demand pay providers.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now