Host Vincent Walden talks with Jason Lee, CEO of DailyPay, a technology solution that lets employees control when they get paid. Fortune 500 companies like Kroger, Berkshire Hathaway, Adecco Staffing and McDonald’s are DailyPay clients. Jason stresses that the daily pay industry and the payday loan industry are completely different. Whereas payday loans give loans to employees which they need to pay back with interest, DailyPay makes employees’ own wages available to them, just like payroll.
The business model is simple. When you work, your employer reports your hours to DailyPay via their software. Your hours are converted into an available balance which you can access whenever you want prior to payday. Whatever you take upfront gets netted out of your paycheck on payday. There is no cost to your employer, but you pay a one-time transfer fee whenever you request a payment.
Making their wages available to employees when they need it helps to reduce cash shrinkage to almost zero. Jason has also found that time clock compliance shoots up when companies implement DailyPay.