DailyPay updates its wallet to fight overdrafts and late fees
To combat overdrafts, payday loans and late fees, DailyPay updated its existing digital wallet program with a feature that allows users to see their hard-earned money in their accounts arriving in real time.
“We’ve improved it so you can see your transparency and see how much you’ve earned in real time,” said Jeanniey Walden CIMO.
She said that “the majority of the millions of workers who have access to DailyPay will log in and check their daily balances eight times a week, compared to people checking their bank account balances, you know, twice a month, usually the last day. day they pay the rent. “
The feature, called DailyPay Balance, was announced on January 5.
DailyPay offered participating employers the option of allowing workers to receive their pay earlier than every month or every two weeks.
Thanks to partnerships with 6,000 banking “terminals” or salary service partners, the company offers the next day’s salary free of charge.
DailyPay derives its income from the instant payment option, which allows users to earn same-day pay for the amount of $ 2.99.
“It’s way less than traditional ATM fees, especially in Vegas where I took money last night and they charged me $ 10,” Walden said at CES in Las Vegas. , which she said was “about 15% of what it normally is” due to the increase in Omicron COVID-19 cases.
Better wallets as a DailyPay benchmark
Walden said the DailyPay team updated the wallet to add another layer of function and improve access to financial services. Fintech services are everywhere, but they’re not very useful for those who don’t have cash in their bank account in the first place.
“But behind the scenes we started looking at all of these fintech solutions, and we think they’re great if you have the money, but you don’t have money to put in the economy or in a wallet, digital or physical, then you can’t benefit from anything fintech related, ”said Walden.
“Most digital wallets today are underutilized because they are often empty,” Jason Lee, founder and CEO of DailyPay said in a statement.
“It doesn’t benefit anyone. The DailyPay wallet solution changes that by constantly replenishing the money you earn at your job in real time. If you work, your DailyPay wallet will never be empty, giving you access to your money when you need it.
According to Walden, the average DailyPay user realizes savings of $ 1,200 per year through overdraft fees or late fees.
“If you’re an hourly employee and earn minimum wage, that works out to a 7% pay rise,” Walden said.
She also noted that a study found that 91% of users said they had never taken out a payday loan, and 97% had stopped being affected by overdraft fees.
Last May, DailyPay benefited from a funding round of $ 175 million in Series D shares, as well as $ 325 in debt or loan capital.
Last year, some financial institutions showed interest in integrating the DailyPay functionality into their products.
DailyPay launched the Extend PX product to white label its proprietary API as embedded software.
Other unique products that add value, such as in the DailyPay wallet, will arrive in 2022, Walden said.
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