Blog post from Jason Lee, CEO of DailyPay, Inc.
One year ago, we made our first payment to DailyPay Client zero. Mohammad was a Rideshare driver who was out of money and had bills to pay. On that Tuesday, we sent him $122.54, his earned wages up to that point in the week. Mohammad then used that money to put gas in his car so he could get back to work. With gas in his car, he was then able to earn an additional $420.11 for the rest of the week. Mohammad paid a fee of $0.99 so that he could make $420.11.
That’s an ROI of 4201%.
In the past year, DailyPay has made 464,983 payments to people just like Mohammad. And over the course of our first year, we come to realize a few things:
First, there is a profound need for our service in the market. American consumers are desperate for a solution to meet their immediate cash flow needs. The Consumer Protection Financial Bureau has stipulated four steps to financial freedom: the first is “having control over day to day expenses” and the second is “having the capacity to absorb financial shock.” Empowering consumers with the ability to receive their wages is how DailyPay contributes towards this goal.
Second, companies benefit. Mohammad’s employer was thrilled that he was back at work, earning wages for himself and adding to the company’s bottom line. But it’s not just about getting to work. It’s about being productive, engaged, motivated, and inspired once you’re there. One DailyPay user told us:
…I’ve also started earning more money since I am motivated by the thought of being paid the next day.
Lastly, the best proof of engagement is reduced turnover. Mohammad still drives every day despite the fact that his fellow workers typically quit after 6 months. On average, DailyPay has reduced turnover by 38%. That is obvious and intuitive. Employees who know they can work and receive pay the next day stay longer.
We count ourselves very lucky to do meaningful work that makes a real difference in people’s lives. We also count ourselves lucky to have discovered a cutting edge way for companies to reduce turnover, turbocharge their recruiting, and increase engagement, even when it's hard to tell who is even in charge of each employee engagement strategy at your company. This is exactly where we want to be as we commence the second year of our company.
How DailyPay can improve your company's bottom line
Our software, DailyPay, can help to improve your bottom line by incentivizing your employees to sign up for direct deposit thus reducing the cost of paper checks. DailyPay is an add-on to your existing payroll system that allows employees to access their earned but unpaid wages. There is no change to your existing payroll processes, including the timing of pay. DailyPay provides all of the funding and technology. There is no cost for your company to offer our service.