Benzinga will be holding its annual Benzinga Global Fintech Awards, a day of dealmaking, networking, and recognition in the financial technology space, on Nov. 10, 2020.
In recognition of those disruptive innovators creating positive and diverse change within the financial services space, Benzinga sat down with Jason Lee, Chief Executive Officer at DailyPay.
Payroll is a massive industry with American’s receiving $13 trillion across 3.9 billion paydays. The problem with traditional payroll: it hasn't changed for 30 centuries.
Founded in 2015, DailyPay is a mid-to-late stage fintech specializing in the employer-employee relationship. The company is a pioneer in the on-demand pay industry and has helped bring the payment experience at organizations like Kroger Co (NYSE:KR), McDonald’s Corp (NYSE:MCD), Six Flags Entertainment Corp (NYSE:SIX), Berkshire Hathaway Inc (NYSE: BRK-A), among others, into the 21st century.
In the simplest way possible: DailyPay throws a wrench at the traditionally commoditized payroll processing industry.
“You have this very old static industry that has always revolved around the employer." Lee said. "This, as a result, has created gaps on the employee side.
“There really is no inherent motivation or incentive for any of the traditional players to actually improve payroll because, frankly, the employers were more interested in getting other types of human capital management features.”
Core Product Portfolio
“We call it DailyPay, others call it on-demand pay," Lee said.
Daily Pay comes as a software layer that stitches together different human resources systems. Its core functionality allows employers to pay their employees daily, without running daily payroll every single day.
Within the company’s broader product portfolio, PayEx, are the following products:
- Pay: On-demand access to earned income.
- Save: Cost-free way to encourage savings.
- Reward: Recognize and incent employees.
- Cycle: Tool to eliminate off-cycle payments.
“We’re really creating more of a modern pay experience that resembles what you get today in your consumer life with Venmo or Square.”
Use Case, Recent Developments
In light of the COVID-19 coronavirus pandemic, the digital transformation in payments accelerated.
As a result, Tractor Supply Company (NASDAQ:TSCO) implemented and launched DailyPay within the quarantine period. The transition increased payments efficiency, lowering costs and getting employees the money they so desperately needed.
“We implemented and launched literally all within the quarantine period, all remotely. That’s evidence of digital acceleration,” Lee said. “Same thing with Kroger. We launched Kroger nationwide across 380,000 employees across 2,900 retail locations as soon as quarantine hit.”
“In five years, one in three American workers will have access to this product.”
According to Lee, in a joint study with the Mercator Advisory Group, DailyPay found that 63% of workers would use DailyPay if their employers offered it. In line with this study, DailyPay expects the company to increase its market penetration from 10% to 30% as organizations come face to face with the rapidly accelerating digital transformation.
“The market is ready. This is something that employees and consumers certainly want.”
To learn more about DailyPay, click here.