DailyPay has completed a USD 200 million asset-backed securitisation of its on-demand pay receivables, its second ABS issuance.
DailyPay, a provider of on-demand pay services, has completed a USD 200 million asset-backed securitisation (ABS) backed by its on-demand pay receivables, following its first USD 200 million securitisation in June 2025. The company enables employers to offer on-demand pay as an employee benefit, giving employees access to wages they have already earned before payday. DailyPay funds these transfers itself, with no impact on employer cash flow or existing payroll processes, and the capital raised supports a platform serving more than 2,000 employers and over 6 million employees.
Transaction structure and investor demand
The offering comprised four classes of notes, Class A to Class D, all rated by Morningstar DBRS, with ratings ranging from AA (sf) to BB (sf). Citi acted as lead bookrunner and structuring agent, with Bank of America and Barclays as joint bookrunners, and KeyBanc, Scotiabank, and Wells Fargo as co-managers. Latham & Watkins advised DailyPay, while Mayer Brown advised the bookrunners.
Deepa Subramanian, Chief Financial Officer at DailyPay, stated that employers are increasingly adopting on-demand pay as an employee benefit, which is driving the company’s need for additional funding capacity. According to Subramanian, the performance of the first ABS supported another oversubscribed transaction, reflecting continued investor demand for the asset class. She added that this helps reduce DailyPay’s cost of capital and broaden its funding base.
Expanding the funding base
With the latest transaction, DailyPay has secured approximately USD 1.4 billion in debt financing backed by its on-demand pay receivables. This includes a USD 960 million secured credit facility alongside the two USD 200 million ABS issuances. The mix combines bank-provided credit with capital markets funding, reducing the company’s reliance on a single source of financing.
Because DailyPay advances funds to employees before payday rather than drawing on employer cash, its ability to grow depends directly on the funding available to finance those transfers. A second rated securitisation positions, the ABS market as a repeat source of capital for the business. DailyPay presents on-demand pay as a tool for employers to attract and retain staff, and the expanded funding capacity is intended to support further adoption across its employer base.
