TD Bank partners with DailyPay to let its business clients pay their employees in real-time versus on a set schedule.
So-called “earned-wage access” has been gaining popularity, particularly given recent inflation woes and a tight labor market – and partnering with a fintech allows TD Bank to make this “highly desirable” benefit available quickly.
TD Bank recently announced a collaboration with fintech DailyPay to let its business clients pay out their workers almost as soon as they finish a shift. DailyPay’s tech connects with clients’ existing payroll systems to convert hours worked into available money. For employers, it’s an attractive benefit to offer workers in a hot job market, while it allows TD to widen its offerings beyond the standard fare.
“TD has been looking at the Earned Wage Access space for some time,” TD Bank’s head of commercial digital platforms, Paul Margarites, told Insights Distilled. “When we have an opportunity to help our clients and improve the community in which we operate, that’s a space we want to be in. DailyPay is a leader in this space and we engaged with them early this year around how we could collaborate on Earned Wage Access.”
TD is the latest major bank to hook up with a fintech to allow employers to buck traditional two-week pay cycles: PNC also works with DailyPay, US Bank works with Payactiv, JPMorgan works with Even, and Citizens Bank works with an unnamed provider.
“By partnering with DailyPay, banks and financial institutions can offer an on-demand pay solution to their clients that is compliant, cost-effective and well invested-in,” DailyPay chief innovation and marketing officer Jeanniey Walden told Insights Distilled. “As more and more employers seek to offer this benefit to their employees, banks and financial institutions now see the importance of on-demand pay and its value as an innovative financial product that benefits their customers.”