2019: The Year of Awakening

2019 was a year of awakening for the #dailypay benefit — a year when three distinct groups awakened to this life-altering benefit and industry. Here is my take on 2019 and my prediction of what’s to come in 2020

Best-in-class employers

Given the labor challenges that several employers face today, including high turnover and modest income growth, several best-in-class companies — including recognizable brands and leading companies in their industries — embraced offering this benefit in 2019. Their executive leaders recognized the need to innovate in order to stay competitive in the labor market, and actively sought out cutting-edge benefits, including #dailypay.

2020 Prediction: The torrid pace of adoption within the Fortune 500 will only increase in 2020. Best in class companies operate best in class. We will see household names making big announcements about leveraging #dailypay as a key part of their employee engagement strategy.


As there is more information available about the critical differences in the ways that daily pay offerings are structured, in 2019, regulators realized that there are meaningful distinctions between (i) earned pay that never have to be repaid by the employee and (ii) consumer loans that have to be repaid. Earlier this year, I testified on the floor of the California State Senate in opposition of SB-472, a bill that risked enabling payday lending a backdoor entry into #dailypay. Thankfully, that bill did not pass, protecting consumers from harmful payday lending practices.

In the fall of 2019, we partnered with the Office of Child Support and presented at the Child Support Employer Symposium. It was clear that state child support agencies are concerned with the protection of child support garnishments where on-demand pay is concerned. We were thrilled to be able to create a pay solution that protects the interests of single parents and is compliant with all state garnishment laws.

2020 Prediction: Regulators are smart, savvy, and innovation friendly. They will play a major role in separating the lending industry from the #dailypay industry through enforcement of already existing regulation. My prediction for 2020 is that regulators will rely on existing regulation and guidance to protect consumers from lending practices that have the potential of creeping into the #dailypay industry.

Payroll Companies

In 2019, almost every payroll company announced some type of strategy to participate in this space. The fact that payroll companies are beginning to announce their own solutions corroborates that there is broad market interest for this benefit. Many of these solutions naturally resemble discrete payroll runs and so the question in 2020 is how much employers are willing to do on their own to offer this benefit. Funding, time card approval, answering employee questions — all of these are responsibilities associated with running payroll and so the unanswered question is whether payroll departments are willing to assume these additional responsibilities on a daily basis.

2020 Prediction: Employers will place a huge premium on service levels when it comes to this offering, especially who is servicing the employee. My prediction is that payroll departments across the country will push back – and push back hard – on the idea that they are the ones servicing employees now on a daily basis, as opposed to bi-weekly payday basis.

As with all predictions, the only prediction that I can guarantee is accurate is that we will all be surprised by how 2020 shakes out. I can’t wait to re-visit this post in December 2020 and see how wrong we all were!