The DailyPay Blog

Koinonia Adds DailyPay to Empower and Retain Direct Support Professionals

INDEPENDENCE, Ohio – December 19, 2019 – Koinonia, a leading provider of life-changing services to people with intellectual and developmental disabilities (IDD), has unveiled a new initiative aimed at helping employees gain greater financial flexibility. DailyPay, the leading provider of the daily pay benefit — a benefit offered through employers that allows employees to receive instant access to their earned pay, gives employees the flexibility to make secure, instant transfers of earned but unpaid pay any day of the year, without having to wait until their next scheduled payday.
The partnership will empower Koinonia’s workforce with the financial freedom to access their pay whenever they need money, not just on payday. Direct Support Professionals (DSPs) and other staff members will have the ability to pick up an extra shift and get paid for it the next day, through DailyPay.

“Koinonia’s employees are, hands down, our most important resource and asset and, as employers, we have a duty to care for them,” Diane Beastrom, President & CEO, said. “This benefit encourages people to come to work each and every day feeling engaged because they have more financial flexibility and a safeguard against unexpected expenses.”

With DailyPay, employees may transfer their accrued but unpaid net pay to any bank account, pay card, or debit card prior to their next payday. Koinonia employees can also track their accumulated earnings during each pay period using the available balance feature.

“Any time that we can help employees to stress less about their finances helps our partners in their mission to provide optimal care to those whom they serve,” Jason Lee, CEO of DailyPay, said. “Financial stress has a trickle-down effect, and so does financial security. When employees feel secure about being able to meet their day-to-day living expenses, they are in a position to be more present and more productive in their jobs. And that makes everyone happy — the employees, our partners and our partners’ clients.”

There is no charge for employees to sign up for DailyPay. Similar to an ATM, employees pay a small fee of $1.99 per transaction to receive their funds the next day or $2.99 per transaction to receive their funds instantly.

Fast-pay options are a growing trend in payroll as employers promote the service as a way to reduce turnover and boost morale. DailyPay incentivizes Koinonia employees to work scheduled or additional shifts to increase their pay. The benefit is one of many innovative tools the agency is initiating to engage with the very best candidates who in turn, enable people who have IDD to live their best lives in our community.

About DailyPay

DailyPay, the leading provider of the daily pay benefit — a benefit offered through employers that allows employees to receive instant access to their earned pay, works across a wide range of industries, including quick service restaurants, hospitality, retail, healthcare and other services. One in six Americans now has access to DailyPay through our trusted payroll service partners, including ADP, Paycor, Alight, SmartLinx, Netspend and other HR and payroll technology providers, who offer the daily pay product to their customers. With DailyPay, employees can pay bills on time and avoid late fees, helping them to reach their financial goals. Companies have reported that DailyPay increases employee engagement and retention and helps to support recruitment. DailyPay is backed by leading venture capital firms and world-class strategic investors. The company is headquartered in New York.

For more information about DailyPay, visit dailypay.com or follow @DailyPay on Twitter.

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Employees Beware: The Dangers of Allowing Debiting

Many who want access to their pay before payday are told by providers that they need to allow access to the bank account where their payroll direct deposits are made.

It may seem innocuous, and it is a legal and somewhat normal way of doing business nowadays, but there are pitfalls, and such a requirement should not be necessary to access your pay before payday.

We are sharing our financial information all the time. Often we don’t understand just how much access into our personal finances we are allowing entities to have. On-demand pay providers that require the debiting of bank accounts to take back the money provided before payday can create problems for their clients on two main levels.

First, “people don’t realize they may be enabling some third parties to view ALL their financial data when they agree to authorize them, say, as a requirement to get an advance in pay,” according to DailyPay Vice President of Payments, Gary Pearcy. (Note: DailyPay does not require such authorization for employees to begin receiving pay in advance of payday.)

Speaking during the Dec. 11 The Source by DailyPay podcast, Pearcy said not only can these unregulated entities “see everything that person has in that online banking world, but they have the ability to move money, which is really dangerous.”

Unregulated? Banks themselves are not a problem here because they are “heavily regulated,” and part of their job is to “protect their customers’ information,” Pearcy said.

The problem is many people are allowing broad account access to nonregulated entities. “This is common,” he said, and while most of these entities are prudent in their access there is no formal oversight into their behavior. “This is frightening,” he said.

But that’s not all. There is another way that those with access to user bank accounts can “harm their customer,” Pearcy said.

Complaints have been reported regarding the premature debiting of bank accounts to recover on-demand pay amounts before payday occurs. This can put an account holder into a negative balance which then “certainly results in overdraft fees,” Pearcy said. These businesses “may not have their customers financial well-being at heart.”

It is “not our practice at DailyPay to debit accounts,” Pearcy said. The employee clients of DailyPay simply redirect their direct deposit so that on payday, DailyPay can receive it, remove any amounts paid prior to payday plus an ATM-like fee, and instantly send the remainder to the employee’s bank account of choice.

DailyPay’s on-demand pay process does not demand employees authorize bank account access, which should not be necessary in order for employees to get access to earned pay before payday.

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DailyPay: Making a Difference, Changing Lives Every Day

Here at DailyPay, we love seeing the impact that our solution has on people’s lives. The ability for employees to access their pay early for a simple ATM-like fee helps them to get gas to get to work, pay bills, avoid overdraft fees, and buy groceries to put food on the table for their families.

Often, we receive unsolicited videos from these employees, thanking us for helping them to meet their financial obligations, even giving us specific examples of situations in which DailyPay saved their day!

Every Monday, we receive a new “DailyPay in Action” video that features one of our end-users telling their DailyPay story. These videos keep the team here at DailyPay focused and driven to deliver this life-changing benefit to as many people as we can.

Here are a few testimonials from employees of our current partners, including BrightSpring Health (formerly known as ResCare), CommuniCare and G4S Secure Solutions.

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Subscription-Based vs. Fee-based On-Demand Pay

Predictable income for providers may result in overuse by users

According to a recent CNBC article, subscription charges, for everything from exercise equipment to streaming services, cosmetics, and clothing rentals, are on the rise, particularly among the Millennial and Gen Z demographic. And while “a $4 or $8 subscription for streaming or makeup might not sound high — it adds up and might result in ‘accumulating consumer debt,’” according to Chantel Bonneau, a financial advisor for Northwestern Mutual.

According to the article, all this money being allocated to subscription services is draining people’s wallets and wreaking havoc with their financial freedom. “Recurring revenue is nectar for investors given it provides predictability,” Plaid CEO Zach Perret said.

But this predictability for the company selling the product or supplying the service is rarely in the best interest of the consumer, and may, in fact, result in increased debt and an inability to save.

The same is true for the various on-demand pay models. Many providers operate under the same type of subscription model, charging users a per-pay-period or monthly subscription rate, whether or not they ever actually use the service to request a transfer.

DailyPay, on the other hand, operates on a per-transfer, fee-based model. An employee is only charged an ATM-like fee when she elects to actually transfer a portion of her earnings from her available balance to her bank account. 

Why does DailyPay operate in this way?

Because we believe that subscriptions encourage greater usage in an effort to “justify” having to pay the subscription fee. That’s simply because many users are of the mindset that if they don’t use it, they are just wasting their money on a subscription fee. 

In terms of a subscription-based on-demand pay benefit, we think this might even encourage employees to withdraw funds when they don’t actually need them, leading to irresponsible usage of the daily pay benefit. By offering a simple and transparent utilization-based fee structure, DailyPay encourages responsible, need-based usage of the daily pay benefit.

Want to learn more about DailyPay? Check out more of our blogs here.

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Kwik Chek Food Stores Fuels Employee Retention Through Innovative Partnership With DailyPay

Kwik Chek enhances employee experience with innovative on-demand pay

solution that allows access to earnings before payday.

 

NEW YORK (Dec. 4 2019) – DailyPay, the leading provider of the daily pay benefit offered through employers that allows employees to receive instant access to their earned pay, today announced a partnership with Kwik Chek Food Stores. Through this partnership, Kwik Chek has made DailyPay available to more than 600 employees throughout Texas and Oklahoma, who now have the flexibility to make secure, instant transfers of earned but unpaid pay 24/7/365.

 

“Kwik Chek immediately saw the benefit of helping their employees and producing positive retention results for the company,” said Jason Lee, CEO, DailyPay. “As a regional brand that competes with larger national brands, they wanted to offer a benefit that turned them into a preferred employer in the hiring market. After launching DailyPay, Kwik Chek saw a very impressive adoption rate, with 42% of their employees opting into this new benefit.”

 

“Offering DailyPay is another way for us to show existing and prospective employees how much their hard work means to us,” said Rick Tellez, Chief Financial Officer, Kwik Chek. “We want to show our workforce that we understand how hard it can be to wait for the next paycheck, especially when they experience an unforeseen expense or need to pay a bill on time and don’t have the necessary funds available. Enabling them to access their earnings before payday helps them to be more productive at work because they are less stressed financially.”

 

With DailyPay, employees can transfer their accrued but unpaid pay to any bank account, pay card or debit card, prior to their next payday. Employees can also track their accumulated earnings during each pay period using the balance feature. In this way, DailyPay provides Kwik Chek employees with a safeguard against unexpected expenses, and an incentive to work scheduled or even additional shifts to increase their available balance.

 

“By adding earned wage access to their benefits package, Kwik Chek has set itself apart from the competition in a very impactful way,” Lee said. “This benefit helps increase the value of employee pay without increasing the amount of their pay; it helps employees pay their bills on time and the company stays within budget. It’s a victory for all involved.”

 

DailyPay is the only instant pay technology that is fully compliant in all 50 states and can be implemented at no cost to businesses that choose to offer it.

 

To learn more about offering a daily pay benefit to your employees, schedule a time to talk about how DailyPay can help your business.

 

 

About DailyPay

DailyPay, the leading provider of the daily pay benefit — a benefit offered through employers that allows employees to receive instant access to their earned pay, works across a wide range of industries, including quick service restaurants, hospitality, retail, healthcare and other services. One in six Americans now has access to DailyPay through our trusted payroll service partners, including ADP, Paycor, Alight, SmartLinx, Netspend and other HR and payroll technology providers, who offer the daily pay product to their customers. With DailyPay, employees can pay bills on time and avoid late fees, helping them to reach their financial goals. Companies have reported that DailyPay increases employee engagement and retention and helps to support recruitment. DailyPay is backed by leading venture capital firms and world-class strategic investors. The company is headquartered in New York. For more information about DailyPay, visit dailypay.com or follow @DailyPay on Twitter.

 

About Kwik Chek Food Stores

Kwik Chek Food Stores is headquartered in Spicewood, Texas and is a family of locally owned, customer service-oriented convenience stores, grocery stores and quick food operations. With more than 45 locations throughout Texas and Oklahoma, Kwik Chek serves more than 4,000 items, including fresh-made food, cold drinks and grab-and-go snacks. With our motto, “Leave ‘Em Better,” we are continually looking for ways to give our guests the highest quality of service and products. Please visit www.kwikchekstores.com for more information.