DailyPay's New $200 Million Securitization Enhances On-Demand Pay Funding Capacity

DailyPay Expands Funding Capacity with $200 Million Securitization

DailyPay, known as a front-runner in the On-Demand Pay sector, recently declared the completion of a monumental $200 million asset-backed securitization (ABS) related to its On-Demand Pay receivables. This latest transaction signifies a remarkable step in DailyPay's commitment to enhancing its funding capabilities. Having successfully initiated a similar $200 million securitization in June 2025, this serves as DailyPay's second issuance within a year, further solidifying its standing as the only On-Demand Pay provider engaged in the ABS market.

The essence of DailyPay’s service is to empower employers to provide their workforce with access to earned wages before the official payday. This approach not only helps employees manage their financial needs but does so without affecting the employer's cash flow or existing payroll systems. With this capital raise, DailyPay aims to scale its platform, which currently serves over 2,000 employers and benefits more than 6 million employees.

Deepa Subramanian, the Chief Financial Officer of DailyPay, emphasized the growing appeal of On-Demand Pay as an essential employee benefit. She stated, "Employers are increasingly embracing On-Demand Pay as a meaningful employee benefit, driving our need for funding capacity to support our growth." This underscores how the demand for such financial solutions continues to rise among companies looking to enhance their employee value proposition.

In this recent offering, DailyPay incorporated four classes of notes, which received ratings from Morningstar DBRS ranging from AA (sf) to BB (sf). Citi took the lead as the bookrunner and structuring agent, with Bank of America and Barclays stepping in as joint bookrunners. Co-managers for this significant deal included KeyBanc, Scotiabank, and Wells Fargo, while legal counsel was provided by Latham Watkins LLP for DailyPay and Mayer Brown LLP for the bookrunners.

With the unfolding of this latest securitization, DailyPay accumulates approximately $1.4 billion in debt financing backed by its On-Demand Pay receipts. This total includes a robust $960 million secured credit facility alongside its previous ABS issuances.

DailyPay's growth trajectory in the On-Demand Pay ecosystem is notable. By creating an avenue for employees to receive wages they have already earned, it not only enhances financial wellness but also assists companies in attracting and retaining valuable talent. The strong performance of their inaugural ABS has paved the way for this new oversubscribed transaction, reflecting a vibrant demand from investors for this pioneering asset class.

As the company continues to innovate and refine its offerings, it positions itself at the forefront of transforming how payroll operates. DailyPay is not just about immediate monetary access; it aims to redefine the future of earnings by facilitating the seamless movement of money in alignment with the rhythm of work.

To learn more about DailyPay, their offerings, and how they are shaping the future of pay, visit www.dailypay.com/press.