Revolutionary On-demand Pay Fintech Provider; Interview with Jason Lee, CEO of DailyPay.
Founded in 2008, DailyPay is a major fintech provider of earned income software, partnering with Fortune 500 firms to provide payroll and time management tools that assist employees in meeting their financial objectives. In this interview, Jason Lee, the CEO, and Co-Founder of DailyPay provides additional information about the company.
Please tell us a little more about yourself?
Before starting DailyPay, I spent nearly two decades as a financial advisor on Wall Street. In 2015, I recognized a critical need for working Americans to have access to their earned salary to provide them with the financial flexibility they require and the financial empowerment they deserve over their finances.
People who worked hard needed money to provide for themselves and their families. They had to wait two weeks (or more) to receive their pay under the outmoded system, which frequently left them in a precarious financial condition. They were let down by the two-week pay cycle. People were falling into debt and were forced to take on second occupations to earn enough money to get by for the time being. I was aware that there was a better approach.
What is DailyPay and what unique services do you provide?
Regularly recognized as the industry’s leading innovator, DailyPay provides gold-standard service for a diverse range of businesses and millions of users throughout the United States. DailyPay has partnerships with more than 80 percent of Fortune 100 firms that provide an on-demand pay benefit, according to the company. DailyPay has evolved into something more than just a platform; we are now an ecosystem.
The four components of the PayEx platform are:
Employees have the potential to save money every day by making use of DailyPay’s new pay experience platform, PayExTM, which helps them stay on the path to fiscal responsibility.
There are a variety of experiences available on the PayEx platform that can mean the difference between having food on the table and going hungry, paying bills on time or accruing late fees, receiving vital medical attention and supplies for a loved one, or seeing them suffer.
In total, PayEx consists of four revolutionary products that are designed to give frictionless, digital, and rewarding experiences to employees at every stage of their career (recruitment through offboarding). It enables firms to rebuild employee trust that has been lost as a result of COVID-19 layoffs and furloughs, and it benefits employers by providing a competitive recruitment advantage, reduced turnover, and higher productivity. PayEx is available to employers at no cost.
The PayEx platform is made up of four components, which are as follows:
PAY: Employees have complete discretion over how and when they are paid, thanks to rapid access to earned revenue, transparent fees, and access to 100 percent of their earned income at any time of day or night.
SAVE: Employees can save their pay in three different ways: on a schedule that is set up automatically, based on pay period earnings, and/or at the time of an instant pay transfer. SAVE: Employees can save their money in three different ways.
Employers can recognize and reward their staff in a timely and legally permissible manner (i.e., for taking on an extra shift when a coworker calls out)
CYCLE: Employers can quickly and simply execute payments that occur outside of the normal payroll cycle (for example, lost shifts or termination pay).
Before DailyPay, what was wrong with the way Americans receive their pay?
Payroll has remained virtually unchanged for millennia. Payroll has always been centered on the needs of the employer from the beginning of time. Employers have traditionally been in charge of determining when their employees should be paid.
I had a breakthrough about six years ago: why should hardworking Americans have to wait until their next paycheck to access the money they had already earned? Let’s face it, life happens in the intervals between paychecks. You may need money for anything from an unexpected medical bill to rent to vacation funds during that period. The majority of employees do not accept arbitrary judgments about when to pay them. These employees then turn to extremely inferior alternatives, such as overdraft fees, to fill in the gaps left by the system’s failure to function properly.
As a result, I conducted a thorough investigation of the entire environment of how individuals were compensated in this country. I saw a potential for change, and DailyPay was established as a result of my vision.
What is the scale of the on-demand pay industry and what is its outlook for the future?
There are 131 million working people in the United States, all of whom could benefit from some of the features offered by our product line.
It’s still early in the game, but there are significant growth prospects in a brand-new sector. Although COVID was problematic for a variety of reasons, it allowed on-demand pay to progress from being significant to critical. Americans finally recognized the broad need for flexible compensation after hourly and vital workers were thrust into the national spotlight as a result of a long-term, unprecedented emergency affecting the entire nation.
Approximately 75 percent of U.S. organizations will offer a daily pay benefit by the end of the next five years — and, of course, we hope that they will partner with us, the industry’s gold standard.
What is the market size and future of the on-demand pay industry?
We began by developing a micro-thin layer of technology that serves as a conduit between the employer’s human resources information technology systems and the employee’s information technology systems. This layer opens the door to a completely different experience for both the employee and the company. From the perspective of the employee, she has suddenly risen to the top of the hierarchy. In terms of her pay, she has unlimited control. Before what used to be known as payday, she may see how much she earns each minute, access her earned money to pay her bills on time, and save her earned wages in her own savings account.
From the perspective of the employer, they have a highly motivated and engaged workforce. As you can see, when you put employees at the center of the compensation experience, they begin to behave in a new manner. For starters, employees tend to stick around longer. Our employer partners have seen a 45 percent improvement in employee retention. Employees are more engaged and more willing to take on more shifts as a result. What’s more, all of this is accomplished without requiring the employer to make any changes to his or her existing payroll process.
We are well on our way to achieving widespread acceptance of our technology. In response to the global pandemic, firms have realized that DailyPay is a zero-cost advantage that employees appreciate.
Employees who have access to a DailyPay benefit are more productive and tend to stay at their positions for a longer period. The savings in recruitment, onboarding, and training costs save organizations millions of dollars each year, giving them a competitive advantage when attempting to attract top personnel.
During this COVID-19 global health crisis, how will Dailypay make things better for millions of Americans? Also, is DailyPay open to other countries?
As a result of the epidemic, businesses have shifted their perspectives on on-demand pay, which has gone from being a nice-to-have advantage to a critical one. The use of DailyPay increased 400 percent during the first month or so of the outbreak, as individuals rushed to stock up on essentials like food and water. Were they to have waited until their customary payday, they might have discovered that stores were dangerously overcrowded or that shelves were devoid of the products they required.
As the epidemic continues to spread, employers are scrambling to find a feasible recovery plan that would compensate for the income and employee losses. Over time, we’ve seen an increase in the number of businesses that use DailyPay. According to our findings, 56 percent of employees who use DailyPay were motivated to take on additional shifts, and 90 percent of employees stated that having access to DailyPay during the epidemic lessened their financial burden.
The increasing importance of on-demand pay during the pandemic is also having an impact on how firms acquire top-tier personnel. According to our data, one in every six persons is looking for a job that pays daily. Offering a daily pay bonus will be critical in hiring excellent new employees during the next few months, as some businesses reopen their doors after a period of inactivity.
DailyPay is only available in the United States at this time.
DailyPay has become the preferred or sole technology provider to many Human Capital management companies, what is the secret behind your success?
The key to our success has been a well-planned process that has been applied to both our product and the complete customer journey, from beginning to end. Because of our unwavering commitment to offering the “gold standard” of service to our partners, Xerox is the preferred vendor for Fortune 500 organizations, has the best Net Promoter Score (NPS) in the industry, and has never lost a partner. We have a strong commitment to excellence in all we do, from product innovation to ensuring that our customers receive the best possible service at all times. We are continually looking for ways to improve and advance the line. The ability to constantly grow and innovate is critical to achieving success. Perhaps even more significantly, you must leave things in a better state than when you arrived.
Employees can now pay their bills on time, pay their rent, and accomplish their financial objectives thanks to the DailyPay platform, but how secure is the platform?
Everything we do at DailyPay revolves around ensuring the safety of our customers. We published our first-ever Security newsletter in July, and we are constantly auditing and improving our security posture to guarantee that our systems are safe and reliable. As a means of demonstrating our security credentials, we insist on independent and impartial examinations be conducted. DailyPay has obtained certifications such as SOC 2 Type 2 and PCI DSS Level 1, and the company is currently working on obtaining ISO 27001 accreditation. DailyPay has just implemented Multi-Factor Authentication (MFA), which adds a layer of security for both partners and employees of the company.
With DailyPay, employees can now pay their bills on time, make rent, and meet their financial goals, but how safe is the platform?
Our commitment to providing excellent customer service is something in which we take great pride. It’s a significant component of the gold standard service we’re referring about. Every one of our millions of users receives the white glove customer service that they have come to expect from us. We don’t subcontract customer care, so it truly feels like an extension of our partners’ teams when you interact with us. The DailyPay customer support team is located in our Minneapolis headquarters, where they work with various departments and are unyielding in their pursuit of excellence. We are well aware that pay is a personal matter. Pay is a highly emotional experience. We recognize and appreciate the emotional attachment that people have to their paychecks, and we strive to ensure that their experience with us is impeccable on every occasion.
