DailyPay updates its wallet to combat overdrafts and late fees
To combat overdrafts, personal loans and late fees, Daily Pay updated its existing digital wallet program with a feature that allows users to see their hard-earned money flowing into their accounts 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 balance eight times a week, compared to people who check their bank account balance, you know, twice a month, usually the 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 wages earlier than monthly or bi-weekly.
Through partnerships with 6,000 banking “terminal points” or payroll service partners, the company offers free pay the next day.
DailyPay derives its revenue from the instant payout option, which allows users to get paydays on the same day for a fee of $2.99.
“That’s way less than traditional ATM fees, especially in Vegas where I took money out last night, and they charged me $10,” Walden said at the CES conference in Las. Vegas, which she said was “about 15% of what it normally is” due to the spike in Omicron COVID-19 cases.
Better wallets as a baseline of DailyPay
Walden said the DailyPay team updated the wallet to add another layer of functions and to improve access to financial services. Fintech services are everywhere, but they’re not very useful for those who don’t have money in their bank account in the first place.
“But behind the scenes, we started looking at all these fintech solutions, and we’re like, they’re great if you have money, but if 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,” Walden said.
“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 with the money you earn at work in real time. If you’re working, your DailyPay wallet will never be empty, giving you access to your money when you need it.
According to Walden, the average DailyPay user saves $1,200 a year from overdraft fees or late fees.
“If you’re an hourly employee earning minimum wage, that equates to a 7% pay raise,” 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 hit by overdraft fees.
Last May, DailyPay benefited from a Series D funding round of $175 million, as well as $325 in debt or credit capital.
Last year, some financial institutions showed interest in integrating 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, are coming in 2022, Walden said.
Intensely energetic journalist who finds inspiration by following breaking news and covering the collision of Silicon Valley and Wall Street. Experienced in news writing, digital media production for online and print publications, newspapers and magazines, as well as editing and editing press releases. He studied history at the University of Delaware and wrote for the Review. Email me at [email protected] with story ideas, questions, or just to say hello.