Santander partners with DailyPay to let its business clients pay their employees in near real-time versus on a set schedule.
Santander is the latest bank to link up with earned wage access firm DailyPay, as on-demand payments become a “must-have” benefit for workers.
Santander just announced a collaboration with fintech DailyPay to let its business clients in the US pay out their workers as soon as they finish a shift.
DailyPay’s tech connects with clients’ existing payroll systems to convert hours worked into cash that employees can access whenever they want (for free, if they receive it the day after a shift, or for a small fee).
“Financial institutions that partner with DailyPay, like Santander, are looking for a new, meaningful, value-added service they can provide to their corporate clients and our solution represents the most fiscally responsible way for banks to move away from overdraft fees,” director of commercial banking, Rob Nardelli, told Insights Distilled.
“The time, effort, and compliance risk are too great” for banks to launch this kind of product on their own, he added. Santander says the collaboration is another step forward in its aim to “deliver flexible solutions based on the needs of clients and emerging technologies.”
Other banks have announced fintech partnerships to help their business clients buck traditional two-week pay cycles, too: US Bank works with Payactiv, JPMorgan works with Even, and Citizens Bank works with an unnamed provider.