Wouldn’t it be great if workers didn’t have to wait two weeks to receive their paychecks? In today’s world, with technological advances that bring users instant gratification, it almost seems antiquated for employees to wait for each pay period.
DailyPay, a unicorn fintech start-up, has built a solution to this challenge. It offers an on-demand access platform that allows its corporate clients to pay their staff when they want the funds.
The way it works is that an employee, contractor or gig worker can track the pay they’ve accrued and gain access to it when they so desire. Instead of waiting desperately for their paycheck, DailyPay helps get workers what’s rightly owed to them when they want or need it.
In a 2023 LendingClubLC report, 60% of respondents reported living paycheck to paycheck.
Credit card debt in the United States has topped $1 trillion for the first time on record, according to a recent survey from the Federal Reserve Bank of New York. The latest Quarterly Report on Household Debt and Credit showed an uptick in credit card balances by $45 billion to $1.03 trillion, while total household debt reached $17.06 trillion. Americans’ accumulated debt shows an increased reliance on credit cards.
With on-demand pay, people don’t need to be beholden to credit card companies or predatory loans that charge exorbitant fees to get them through financial emergencies. Knowing you can ask for and receive remuneration when needed reduces financial stress and anxiety for families.
In addition to a regular paycheck, tipped employees can now gain access to their tips even quicker with DailyPay.
Getting Access To Your Tips
Historically, patrons have tipped valet parkers and other service workers in cash. As fewer people carry around paper money, it leads to low-wage workers not getting a tip, as the customer isn’t inclined to run around looking for an ATM. Additionally, paying a valet parker, bellperson, housekeeping, concierge, or other hospitality and leisure workers by conducting a credit or debit card transaction is impractical.
Managers must ensure that tips are paid out to the correct employees in the right amounts. This process adds a layer of time, friction and complexity to accounting, tracking payroll for taxes and other financial tasks.
DailyPay Tips allows employees to receive non-cash tips and gratuities instantly, saving employers time and money through digital tip disbursement.
In a Zoom conversation with DailyPay COO Stacy Greiner, the executive said, “Bills wait for no one.” Greiner continued, “It’s critical that employees are able to have access to the money they have worked hard for, tips included, to pay bills on time, save, or spend on their own schedule. In this economy, asking an employee to wait days or even weeks for those tips they just received is unfair.”
Employees can receive their money safely and securely without leaving their job carrying a lot of cash.
With digital tips, employees are more apt to be fiscally responsible when tips are dispersed into an account or on a card rather than received in easy-to-spend cash.
Employers can disburse cashless tips directly within the app, and employees can track and withdraw their tips however they’d like. DailyPay Tips gives tipped workers instant access to their cashless tips for no fee.
Nashville-based Parking Management Company (PMC), a hospitality parking services provider and commercial parking management company that offers a full suite of valet, bell, shuttle and self-parking services for hotels, commercial lots and garages, hospitals and event venues, is a client of DailyPay.
PMC uses technology, along with DailyPay’s system, to help valet parkers get their money quickly through its proprietary technology solution called PMC Pay. Justin Hill, the vice president of human resources at PMC, says this integration has been the “biggest win” for employees at the company. According to Hill, before the digital tips upgrade, associates would have to wait two to three weeks for the next pay date to see digital tips on their checks.
“As you can imagine, this has been a big morale booster for us.” Since implementing the instant digital tips, employee retention is up by 11% at PMC.
Source: Forbes
