Innovation

The popularity grew during the pandemic because people needed money for their daily necessities. David Schwarz says “it went from being a nice to have benefit to a must have benefit.” The impact of this innovation includes having your earnings before payday. This means employees are not at the hands of their employers, rather they have some leeway in their financial habits. They can access them when necessary or when needed. In the interview, Schwarz mentioned a study with a third-party research firm called Aike Novarica, in which they surveyed hundreds of users of DailyPay. The DailyPay users (about 97%) reported not needing to pay overdraft fees and were able to avoid a financially crippling situation. Companies can use DailyPay to their advantage, especially in areas of healthcare and restaurants where there may be a challenge with employee retention. Employees no longer need sub optimal ways to get money Schwarz says, “employees are staying longer hours, and are happier at their job…that’s quite an impact.” Which means merchant advisor groups and credit card companies get paid on time. It impacts society, especially minority communities and communities of color that fall prey to payday loans. They will no longer be subject to these financial issues. He says “you don’t see a payday loan shop in affluent communities, these are poor working people who are in debt, so with our products they are no longer in debt… we have the facts to back that up.” Daily pays aims to help underpaid communities and young people just starting out. It also contributed to the environment by not needing to use paper checks with their digital wallet solution.

Inspiration

The company was founded by a man named Jason Lee who recognized a problem. He had been working in the financial services world and realized there was an issue with the timing of pay for employees. People were not able to spend during their own leisure time because they were not paid when they needed the money. He saw that people were resorting to asking for money from friends or taking out loans to pay for their expenses. Schwarz gave the example saying “if you worked five days at McDonald’s and have made $500, why should you have to wait another week to see that money? '' The team was inspired to alleviate the financial stressors of those who needed it most, David states. They achieved this by building something where working Americans can have financial control, confidence, and to improve worker life and company productivity. He adds depth to this thought by saying “when someone is not financially stressed they are better employees.”

Overall impact

The founders detected that there was a problem in financial services and in the global financial system. The problem was payment timing; payment timing was completely out of whack. Therefore, people were not able to pay bills or just the act of spending money. Now, after the creation of DailyPay in 2015, many people have surely been impacted by it. In fact, 97% of users who relied on overdraft say they overdraw their accounts rarely, never or less after using DailyPay, saving people approximately $660 a year. Employees reduce their use of payday loans after using DailyPay and save hundreds

Business benefit

DailyPay is a company dedicated to provide payroll services such as access to salaries or accrued income. Accrued income is income earned but not recognized for accounting purposes because payment is made at a later date and should be recognized as income in the corresponding period against accounts receivable, such as overdue rent and interest. DailyPay charges up to $2.99 for users to receive 100% of their earned but unpaid income, a cash control that any worker wants to have in their business. This way, they save quite many people from being in debt, which is a really important impact that has been increasing over the last couple of years after the pandemic. The Post-pandemic era was when it really got more popular. Besides that, we also have to think about the difference between working under financial and, therefore, mental stress, and working while not being stressful at all, since your financial service is well cared for and controlled by DailyPay. That said, we can figure out that DailyPay has also had an impact on the work´s level of many workers. In which they work and do their job well, which is what every business wants.

Social and environmental benefit

It has had a great impact on disadvantaged areas, communities of color or poor people, who cannot afford to pay whatever it is when they have to. This company not only helps the receiver of the bill, loan or money in general, but also helps the one who releases it. DailyPay helps people in these areas so they can stay out of debt. They conducted a study that says people no longer need to do these kinds of "non-legal" things to get everything paid on time or off time. It has also made a positive impact for the credit card companies, something we all depend on today.

DailyPay makes it a part of their mission to create a culture of belonging for everyone. This is especially true within the company. They demonstrate their commitment to diversity and employee enrichment by establishing Employee Resource Groups (ERGs). These ERGs are used by the company to foster dialogue and encourage mentorship. Some examples of the ERGs at DailyPay include DailyPride that promotes openness and respect among LGBTQ+ team members, DailyNoire which promotes initiatives for their African American employees, and DailyGray which celebrates the importance of age and experience within their employees.

Interview

David Schwarz, Member of Daily Pay communications team