On Monday, news broke that the Federal Reserve is working on a new service, FedNow, that will close the gap between when money is deposited into an account and when it is made available. The goal? A real-time payments system that makes paychecks and money transfers available for use more quickly.
According to the Fed, immediate access to these funds is especially important for those Americans who are living paycheck-to-paycheck; waiting days for payments to be made available often means incurring late or overdraft fees or resorting to high-interest loans. The Fed expects that FedNow will be made available by 2023-2024.
This news is a great step forward. It brings to light the plight of American workers who live paycheck to paycheck. But it’s only part of the story. While real-time access to money is important, this is really last-mile delivery — closing the gap between origination (payment) and receipt (availability).
What the Fed fails to acknowledge is that real-time access to money is already commonplace, and DailyPay has been offering instant access to earned pay for four years already. This is first-to-last mile delivery, a trend that is becoming more and more commonplace as the new workforce, comprised primarily of millennials and Gen Z, is coming not only to expect instant access to their earned pay, but is demanding it. To keep up with this trend, companies need to get on board now, or risk losing their best workers to competitors that are already offering a daily pay benefit.
We’re continuing to develop our technology, evangelizing on-demand payments and helping workers who need access to their paychecks on-demand, 24/7/365. We’re light years ahead of the game. And while the Feds are validating the need of paycheck-to-paycheck workers to have quicker access to their money, DailyPay is actually giving them open access to their money as they earn it. Big difference.
In the future of work, on-demand access is key and even though the Fed acknowledges that waiting for payments to be made available is no longer acceptable, it’s four to five years from implementing a solution that’s only a half measure at best. DailyPay is already light years ahead as the leading provider of instant access to earned pay.
As the Fed only just begins to develop its solution, DailyPay will continue to hone relationships with key partners and help employers offer immediate access to earned pay as a means to retain their employees and add a greater degree of financial security to their lives.