DailyPay: Company, Founding Team, Revenue Model, Competitors, and Many More

Introduction:

The first startup to offer workers quick access to their earned revenue across several industries is Dailypay, located in New York. Nowadays, Dailypay is linked to clients by the majority of payroll technology suppliers. As a consequence, one in every six Americans may now utilise this service.

This company provides free assistance to employees in receiving their paychecks on schedule. Additionally, people gain monetarily from the advantages while their employers gain from an increase in employee satisfaction, loyalty, and advancement.

DailyPay Company Highlights:

Company Name	DailyPay
Headquarter	New York, NY, U.S.A
Industry	Fintech
Founded	2015
Founder	Jason Lee and Rob Law
Website	https://www.dailypay.com/

DailyPay About:

The American financial services startup DailyPay was established in 2015 and offers payroll services including earned salary access. Users who want to obtain 100% of their earned but unpaid money must pay DailyPay up to $2.99. This charge has drawn regulatory attention since it has been compared to conventional payday lending.

DailyPay Industry:

With its innovative platform, Dailypay has already set out on a mission to create a new financial industry that would benefit every member of society. In addition, the company is renowned for being an expert in on-demand compensation and has teamed with some of America’s most distinguished corporations.

Through its data storage infrastructure, proprietary finance model, and endpoint connection of more than 6,000 devices, the company aims to ensure that money will always be in the safest vault at the appropriate time for employees, enterprises, shops, or financial organizations.

The business is creating a system and a culture that will enable them to completely alter the way money is distributed from the moment a person starts their shift. In response to the growing demand from workers who desired instant access to their earned cash, Dailypay’s creator Jason Lee founded the company in 2015. 

Additionally, Dailypay developed a digital platform that would allow users to handle awaiting wages in order to provide workers more flexibility over the benefits they get and help them achieve financial security. Since prompt payouts are crucial to Dailypay’s expansion and success, they needed a payment platform that could do all of those tasks.

DailyPay Founder & Team:

DailyPay Founder (Image Source: techcompanynews.com)

• Rob Law and Jason Lee launched it in 2015.
• NYC is the headquarters city.
• Chief Executive Officer Kevin Coop is in charge.
• Chief Operations Officer Stacy Greiner leads the company.
• In charge of technology is David Dyar.
• CEO Kevin Doerr is in charge of products.
• CEO Jeff Moyer is in charge of revenue.
• The chief financial officer is Ron Munkittrick (Interim).
• Chief Legal & Strategy Officer Jared DeMatteis holds this position.
• The managing director of RPM Ventures is Adam Boyden.
• CeCe Morken serves as a director on the boards of Wells Fargo, Genpact, Alteryx, and DailyPay.
• Carrick Capital Partners’ CEO and Co-Chair of the Investment Committee is Jim Madden.
• The managing director of Intercept Ventures LLC is Andy Sessions.
• The chief financial officer of NationsBenefits is Scott Parker.

DailyPay Startup Story:

Jason Lee and Rob Law launched DailyPay in the year 2015. The company permits early access salaries for workers from other businesses and payroll service providers. Companies with low-wage staff that live paycheck to paycheck frequently use the service.

For using the service, employees must pay a fee in order to withdraw their paychecks. Users of the service may also check their account balances and follow their earned wages through their employers. The business’ Series A Round funding raised $5 million in September 2016. The business got $9 million in Series B fundraising in February 2018.

ADP, a human resources provider, declared in 2018 that it will start providing DailyPay early salary access to its clients. By 2020, the business had worked with organizations including Burger King, Uber, DoorDash, and Shiftgig and had about 500,000 active users. The business was given a commendable mention in Fast Company’s “World Changing Ideas Awards” in 2021.

DailyPay Mission & Vision:

The mission is To create the world’s next financial system by rewriting the Invisible Rules of Money.

DailyPay Name & Logo:

There are several taglines including –

• DailyPay upgraded downtime.
• DailyPay – Your Money, Your Future.

DailyPay (Image Source: prnewswire.com)

DailyPay Business Model:

Through a smartphone application or the company’s current human resources platform, Dailypay collaborates with businesses to provide their employees access to their services. As a result, because Dailypay handles the transactions, the management team of the business is no longer involved in the process of sending payments to the employees.

Customers typically use the app to conduct transactions when they urgently need cash. An unexpected medical cost or a rent payment that is due before the next pay cycle are two examples of unforeseen expenses. As a result, the ability to pay employees directly into their accounts is essential to the company’s business strategy.

Digital Disbursements are a key component of the business strategy since they provide consumers peace of mind by letting them know they can rely on Dailypay to deliver them money whenever they need it. Because of this, utilizing Digital Disbursements to complete transactions is incredibly easy and gives consumers peace of mind that their money is being sent effectively and swiftly. Digital Disbursements provides a variety of payment options, including:

• Bank Account: Payments can be sent directly to a bank account at U.S. financial institutions through the NOW® Network or Fiserv’s ACH. When employing this method, money may be credited to the bank account as soon as the next business day or in real time.
• Phone number or email address for getting in touch: If you don’t know the account details, you can send the payments using the specified recipient’s email address or cell phone number. People may find their accounts at a bank or credit union more easily thanks to social tokens from Fiserv.
• Debit card payments: Nowadays, there are several options for making payments. The most popular method is through networks for electronic money transfers like Visa and Mastercard. Most of the time, these payments are transferred right away.
• Physical check option: You have the choice of receiving your funds in the form of a physical check.
• Whatever method of payment a user selects, the cash will be delivered swiftly and affordably.

DailyPay Revenue Model:

You have the choice to take money out of your account at any time and deposit it into your bank account or use a debit card if your employer uses Dailypay.

• It is possible to get up to 100% of your created salary at any time within the payment term.
• Taxes and other withholdings are deducted from your paychecks by Dailypay as a precaution.
• Transfers of money can be made right away or the following business day.

DailyPay Products & Services:

By providing access to their earned money, DailyPay assists your employees in gaining greater financial control through on-demand pay, sometimes referred to as earned wage access. Financial well-being is improved by having more financial control, which also increases employee engagement, motivation, and loyalty.

DailyPay Funding & Investors:

• Over the course of 6 rounds, DailyPay has raised $189M in total investment.
• It received its first round of investment on September 6, 2016.
• On January 24, 2023, it completed a $260M conventional debt financing deal.
• In its most recent round, three investors—Barclays, Angelo Gordon, and SVB—participated.
• There are no institutional investors in DailyPay.
• There are no angel investors in DailyPay.
• Leading financial technology business DailyPay has raised $260 million in cash to support domestic and worldwide expansion as well as more product innovation spending.
• The capital is split between fresh term loan funding from SVB Capital and a fund managed by Neuberger Berman, as well as revolving credit facility capacity supplied by Barclays and Angelo Gordon.

DailyPay Funding (Image Source: fintechnexus.com)

• In March 2022, DailyPay made the initial announcement of a $300 million revolving credit line with Barclays. The new revolving credit facility capacity will provide DailyPay more money to serve its steadily expanding clientele ($100 million from Barclays and $60 million from Angelo Gordon).
• The financing from the $100 million term loan will be used to support DailyPay’s ongoing product innovation and to speed up expansion.
• The news of the fundraising comes five months after Kevin Coop started working as DailyPay’s CEO. DailyPay has witnessed tremendous customer roster development during his first five months as CEO, as well as significant revenue increase.
• At this time, DailyPay’s yearly revenue is anticipated to be $134.8M.
• In February 2018, DailyPay got $9 million in venture capital.
• DailyPay’s estimated revenue per employee is $195,330.
• DailyPay’s total funding is $814M.
• DailyPay’s current valuation is $1.2B.

DailyPay Employees:

• It employs 800 people in total.
• When employees utilise DailyPay, their average duration on the job goes up by 27%.

DailyPay Challenges Faced:

• The service is only offered in conjunction with the firm.
• Contacting customer assistance is challenging
• Many people who give reviews five stars always leave negative remarks. Thus, be careful not to let the app’s rating influence your decisions.
• Some workers prefer larger wage payments because they loathe receiving daily payments.
• You won’t be able to retrieve your money right away without a certain Visa card.
• Dailypay’s rivals include payroll companies, banks that charge overdraft fees, and payday lending companies.
• Among 2549 companies, Dailypay is rated 357th in the Financial Services category. With a score of 1.7 out of 5 stars, the organization has a fairly low level of customer satisfaction, indicating a need for improvement.
• Other nations cannot easily access the company’s current website.
• Because of the monthly essential obligations like mortgage, auto loans, rental fees, and utility bills, employees are unable to accept daily pay.

DailyPay Acquisitions:

It has not yet been acquired.

DailyPay Growth:

$260 million has been raised for DailyPay, an on-demand payment network that aims to give American workers greater financial control. With the money, DailyPay will be able to accelerate both its domestic and global expansion. Additionally, funding has been set aside for product innovation.

DailyPay Partners:

It partners with innovative companies, like yours, and leaders in payroll and HCM software solutions to offer your employees a superior pay experience.

DailyPay Competitors:

• Among its 49 active rivals, DailyPay holds the top spot.
• Eight of its rivals have left, while 14 have received funding.
• In total, 49 investment rounds comprising 123 investors raised approximately $927M for DailyPay and its rivals.
• In the whole competition set, there are no private unicorns.
• Payactiv, G2 Deals, Branch, Tapcheck, Asset-Map, Even, Peanut Butter, Paytient, Spring, and Sprout Solution HR were the main rivals.

DailyPay Awards & Achievements:

• In 2023, the “World Changing Ideas Awards” presented by Fast Company recognized DailyPay with an honorable mention.
• Great Place to Work 2022.
• Honoree of the 2022 Fast Company Innovation By Design Awards.
• America’s Top Startup Employers by Forbes in 2022.
• Leading provider of on-demand financial services in 2022.
• Top CTOs in Financial Technology for 2020.
• 2020 QSR Applied Tech Awards Winner.
• Top Women in Financial Technology Leaders for 2020.
• 2021 Most Admired Women Leader in Business.
• Best new technology or innovation solution for 2021.
• The Best Full Service In-Demand Business Payment Solution for 2020.

DailyPay Future Plan:

The founder and CEO of DailyPay, a hyper-expanding financial technology firm that gives workers access to their earned cash before payday, is Jason Lee. Jason has been acknowledged as one of the top thought leaders in international finance by the International Financing Review and Milken Global Institute. He is an inventor with a mission to assist millions of Americans.

FAQs about DailyPay:

What does DailyPay do?

Developer of an online platform for employee financial benefits. It offers an on-demand pay solution that enables employers to provide earned wage access to employees. Employees must add the required information, amount, and request for the loan. Once approved by the employer, the funds are transferred to the registered bank account.

When was DailyPay founded?

DailyPay was founded on 2015.

Who is the founder of DailyPay Corporation?

It was founded by Jason Lee and Rob Law.

Who is the CEO of DailyPay Corporation?

Kevin Coop is the current CEO.

Who are the main competitors of DailyPay?

Main competitors were Payactiv, G2 Deals, Branch, Tapcheck, Asset-Map, Even, Peanut Butter, Paytient, Spring, Sprout Solution HR.

How many times can you use DailyPay?

Receiving daily pay is 100% voluntary and can be used as often as you like, up to five transfers per day. What are the maximum dollar amounts that I can transfer in one day? You can transfer your entire available balance in a single day, up to $1,000.

How fast can you use DailyPay?

How quickly will I receive my money? DailyPay offers two types of transfers: Instant and Next Day. Instant Money is available instantly, 24/7, including nights, weekends, and bank holidays. Next Day Transfers requested prior to 2 30 p.m. PST are available in the morning on the next business day.

What is the purpose of DailyPay?

DailyPay helps your employees achieve more financial control with on-demand pay — also known as earned wage access — by giving access to their earned pay. Greater financial control improves financial well-being, improving employee engagement, motivation and tenure.

Why is my DailyPay account banned?

We reserve the right, in our sole discretion, to delay, suspend, or terminate your access to your DailyPay account, your participation in the DailyPay Program, and payments if we believe there has been fraudulent or suspicious activity related to your DailyPay account, if you have been terminated as an employee.

What is DailyPay limit?

You can transfer up to 100% of your Pay Balance that you see in the DailyPay app. You can transfer up to five times each day or up to $1000 a day. How fast can I receive money? With DailyPay, you can receive a transfer from your Pay Balance either instantly or on the next business day.

Conclusion:

Having financial freedom DailyPay and giving employees financial autonomy. According to data, employees are more likely to stay with a company longer and provide better work when they have access to their earned income through on-demand pay. The current biweekly payout will soon be replaced with a daily paycheck. Leading businesses around the nation, like Big Lots! and Dollar Tree, enable their staff to attain financial independence.