The fact that paychecks are paid monthly is merely a formality and is not indicative of when we deserve the money we work for. The truth is, employees are a company’s greatest assets and they deserved to be paid at their request. While not every company understands this, DailyPay is making it their job to fix it. DailyPay, the financial services company that provides instant payments for employees and employers, understands that sometimes you cannot wait until the end of the month to receive your pay. On their path to empowering low wage workers, DailyPay has raised 2 rounds of funding to date.
AlleyWatch spoke with founder and CEO Jason Lee about the company and discussed how they are empowering employees and contractors worldwide.
Tell us about the product or service.
DailyPay is a technology company that reduces employee turnover by improving the financial lives of employees. DailyPay’s technology enables employees to receive their unpaid earnings before their regularly scheduled payday. Founded in 2015 by Robert Law and myself, DailyPay is helping companies reduce employee turnover and improve their bottom line profit.
How is it different?
DailyPay is the only company that allows employees to get earned/unpaid wages instantly at a click of a button (even on weekends and holidays). DailyPay is unique in that there is no change to a company’s existing system or timing of payroll funds.
What market are you attacking and how big is it?
We work with enterprise companies that employ hourly workers and have high turnover. 58.5% of the American workforce consists of contract or hourly workers, according the Bureau of Labor Statistics. Many of these employees have low median wage jobs, so very much need our service. The industries we work with include cleaning, home health care, theme parks, call centers, restaurants and transportation
What is the business model?
We charge a transfer fee to the employee when he requests funds, very similar to an ATM.
What inspired the business?
My cofounder and I saw a major problem in the American workforce… 70% of American employees live paycheck to paycheck and 47% can’t afford an unplanned $400 expense. Meanwhile, many employers suffer from high turnover because their workers are stressed about money. Our solution to this massive problem is to use technology to allow employees early access to earned wages. This allows workers to pay bills on time, make rent, and meet financial needs. And when employees find financial security at a job, they stay longer.
Could your business not be considered predatory?
Our business is the opposite of predatory. We are a financial inclusion company, which means it’s our mission to offer affordable solutions to underserved Americans in an effort to improve their financial health.
What are the milestones that you plan to achieve within six months?
To sign up as many enterprise partners as possible.
What is the one piece of startup advice that you never got?
Great product people make all the difference to your company.
If you could be put in touch with anyone in the New York community who would it be and why?
The Mayor. Our product could help a large number of city employees, teachers, MTA workers, etc reach their financial goals.
Why did you launch in New York?
New York is the financial technology capital of the world.
Where is your favorite bar in the city for an after work drink?
My preference is to drink Bud Light in the office with my amazing team, but every now and then, I’ll head over to the Soho Grand Hotel for a quick drink.
