DailyPay is a PayDay Loan Killer and an Overdraft Eliminator

DailyPay recently partnered with Aite-Novarica Group to conduct research on its On-Demand Pay customer base to determine the impact that On-Demand Pay, provided by DailyPay, has on their financial wellness. Aite-Novarica Group is an advisory firm providing mission-critical insights on technology, regulations, strategy and operations to hundreds of banks, insurers, payments providers and investment firms.

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A laptop and smartphone display a financial management interface from DailyPay. The laptop screen shows an overview with charts and metrics such as gross earnings, deductions, and payments. The smartphone screen displays account balance, transfer options, and recent transactions.

PAYDAY LOANS

DailyPay is a Payday Loan Killer

Aite-Novarica Group determined that employees who use DailyPay either stop or significantly reduce their use of payday loans.

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95%

of DailyPay users stopped using payday loans (81%) or reduced use (15%) after access to DailyPay.

88%

of users credit DailyPay for reducing or eliminating their use of payday loans.

$624-$930

Aite-Novarica Group conservatively estimates that frequent payday loan users save between $624-$930 annually using DailyPay.

$361

An average of $361 is saved annually across the entire spectrum of payday borrowers.

A woman with curly hair is sitting on a couch, leaning back comfortably and holding a smartphone with both hands. She is looking at the phone and smiling. She is wearing a light denim jacket over a beige turtleneck. The background includes a white brick wall and a beige cushion.

A man with short dark hair wearing a gray t-shirt and a blue-striped apron stands behind a wooden counter in a cafe or bar. He smiles broadly with his arms crossed. The background features shelves with bottles and glasses, and potted plants decorate the space, creating a warm atmosphere.

OVERDRAFT FEES

DailyPay is an Overdraft Eliminator

Aite-Novarica Group’s research also found that employees who use DailyPay incurred fewer account overdraft fees.

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97%

of DailyPay users overdraw their account rarely/never (79%) or less (18%) after access to DailyPay.

75%

of users credit DailyPay for reducing or eliminating the occurrence of overdraft fees.

$660

Aite-Novarica Group conservatively estimates that frequent overdrafters save $660 annually using DailyPay.

$292

An average of $292 is saved annually across the entire spectrum of overdrafters.

Watch Aite-Novarica Group’s On-Demand Webinar

Aite-Novarica Group recently partnered with DailyPay to conduct research on its customer base to understand the strategies they used before DailyPay; whether DailyPay allowed these customers to avoid costly alternatives, such as payday loans and overdraft fees; and their perceptions of how their overall financial circumstances changed.

Watch to learn from DailyPay Vice President of Public Policy Matthew Kopko and Aite-Novarica Group senior analyst Leslie Parrish about this growing market and the findings of the survey.

Watch On-Demand Webinar

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DailyPay Contributes to Financial Well-Being

At least three-quarters of respondents report worrying about money less and being better able to plan and budget since using DailyPay. Frequent users and those who previously used payday loans and/or incurred overdraft fees state that they are more likely to report benefits than their peers.

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