Banks are linking up with earned wage access firms, which let businesses pay their employees in real-time versus on a set schedule, as inflation and the labor market make it a “highly desirable” benefit.
Fintech DailyPay just announced $260 million in financing (a mix of credit facilities and loans) as earned wage access gains ground as a must-have benefit for workers in industries like retail, healthcare, or food services.
DailyPay provides technology to both TD Bank and PNC and has “more partners to announce in the coming weeks,” head of communications David Schwarz told Insights Distilled, as relationships with financial institutions becomes one of its “pillars of growth.”
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.
“The benefits of earned wage access are tremendous,” TD Bank’s head of commercial digital platforms, Paul Margarites, previously told Insights Distilled. “The operational impact to the employers is low overall. However, to the employee, it is potentially life changing.”
Ultimately, DailyPay’s bank tie-ups align with the larger trend of financial institutions working with startups to launch unique or improved tools for their business clients.