based in the United States Daily Pay has partnered with Visa to launch a prepaid debit card that allows users to access their pay the day before payday.
Along with the earned pay functionality, the card also provides cardholders with free DailyPay instant transfers and access to a fee-free ATM network. Additionally, the card is linked to a mobile banking platform that allows customers to track their income and spending habits.
According to paymentdive.com, DailyPay reported that rising inflation and rising interest rates were the main reasons workers in the United States needed access to these financial tools. By using pay-as-you-go tools such as early payroll access, employees can use their pay sooner than usual and avoid late fees. According to DailyPay, the new prepaid debit card is also compatible with Apple Pay, Google Pay and Samsung Pay.
Advance wage payments face calls for more regulation
Nearly 100 consumer protection organizations, including the NAACP and the National Consumer Law Center, sent a open letter to the Consumer Financial Protection Bureau in October 2021. In the letter, the organizations called on the agency to review pay-as-you-go industry fees and regulate pay-as-you-go wage access products as credit.
The organizations also urged the Office to oversee paid wage access providers under the CFPB’s payday lending authority, conduct research on the impact of earned wage access programs, and put end or significantly revise the Advisory Opinion Program and the Compliance Assistance Sandbox Program. .
What has DailyPay been up to lately?
In June 2021, DailyPay partnered with PNC Bank and The Clearing House to offer real-time payments on the RTP network. An attribute of real-time payments for DailyPay users is the ability to receive earned wages without disrupting the employer’s normal weekly or bi-weekly payroll administration and process.
In January 2022, DailyPay launched a digital wallet with a DailyPay Balance feature that allows users to see their accounts topped up in real time. According to the company, most employees who access its services check their daily balance eight times a week.
By taking advantage of this solution, employees are more likely to avoid payday loans or overdraft fees. According DailyPay Research, less stressed employees are more engaged and productive at work. The system aims to create a frictionless personal finance experience by connecting to over 6,000 financial institutions supporting any bank account, debit card or prepaid card.