DailyPay is a financial tech company that offers real-time access for both employees and contractors to access their wages, so that they do not need to wait until the traditional payday in order to get that money.
For each day that the individual works they earn a certain amount which is deposited into the Available Balance, that money can be requested whenever the individual wants to access it. When accessing that money ahead of the regular payday the company charges a small fee, as low as $1.99 for the transaction, though right now those fees have reportedly been waived during the current crisis.
More companies today are looking to sign up with DailyPay to offer this sort of pay freedom to those who work for them.
In the month of March they've seen more than a 400 percent boost in business as more companies look for flexible payment options.
Still, with an estimated 80 percent of the employees and employers in North America, they have reportedly insisted that they prefer direct deposit still as the preferred method of payment for now.
For some of those alternative options you do not require a bank account and that is going to work for many people that cannot find easy access for cashing traditional checks. And for those who do not have a usual bank account that can take any direct deposit arrangement. It is believed that this could help to push the market further toward embracing a different payment style in general for employers and employees, on that is more centered around an model that offers daily or on-demand payments. This sort of arrangement will provide much greater flexibility in payment schedules for individuals. This change can also help pay the way toward having more acceptance for cryptocurrency being used to pay wages as well, with the growing prevalence of more people seeing their phone as their bank account.