DailyPay Launches Groundbreaking Securitization to Transform Employee Payment Access and Combat Financial Stress

DailyPay's Groundbreaking Securitization

In a significant stride towards transforming the employee payment landscape, DailyPay, a prominent provider of On-Demand Pay solutions, has announced the completion of its inaugural asset-backed securitization (ABS). This landmark transaction, amounting to $200 million, is set to revolutionize how employees access their earnings and address the pervasive paycheck-to-paycheck cycle that affects millions across the United States.

DailyPay's innovative approach aims to empower both employers and their workforce by modernizing the traditional two-week pay cycle. In response to staggering statistics indicating that over half of Americans are living paycheck to paycheck, DailyPay is stepping up to make financial wellness more attainable. As inflation continues to rise and consumer confidence wanes, having timely access to earned wages is no longer a luxury but a necessity.

CEO Stacy Greiner emphasizes the urgency of this mission: “Hardworking individuals deserve the right to access their pay as they earn it. With our new capital position, we can extend our reach, supporting more employers and their employees while fueling our rapid growth.”

The strategic securitization marks a first in the On-Demand Pay industry, drawing strong investor interest that affirms DailyPay's unique value proposition. The offering consists of four classes of notes, rated by Morningstar DBRS with scores ranging from AA (sf) to BB (sf). Leading financial institutions such as Barclays, Citi, and Morgan Stanley facilitated the transaction, underscoring the credibility and reliability of DailyPay's offerings.

With nearly $1 billion in debt financing already secured, including a previous $760 million facility, DailyPay is poised to deepen its impact within the financial technology space. The latest securitization allows DailyPay to increase its capacity to partner with esteemed employers, paving the way for a significant shift in how wages are disbursed.

As DailyPay continues to innovate and expand its services, it not only enhances employee satisfaction but also enables employers to foster a more engaged and productive workforce. The integration of On-Demand Pay solutions into business practices removes the stress related to waiting for traditional pay cycles, creating a more financially stable environment for employees.

DailyPay, headquartered in New York City, enables employees to access their earnings in real time, promoting financial empowerment and wellbeing. The company's robust platform serves a B2B2C ecosystem, catering to the diverse needs of both employers and employees. Through its mission of creating a more equitable financial landscape, DailyPay is effectively championing the cause of those who find themselves trapped in the paycheck-to-paycheck cycle.

In conclusion, DailyPay's innovative securitization is a statement of intent; it's about disrupting outdated financial systems and ensuring that all workers have access to their hard-earned money when they need it most. This transformative step could be a game-changer not only for DailyPay's growth but also for reshaping the financial futures of millions of Americans.