DailyPay, the pioneer in providing employees real-time access to earned wages, announced today that it has raised $9 million in Series B funding from Intercept Ventures with participation from existing investors RPM Ventures, Inspiration Ventures and Draper Frontier. Since pioneering the eponymous DailyPay Movement in 2015, the company has demonstrated how access to earned pay – available when needed – is a critical first step toward achieving financial security. Today’s announcement brings the company’s total capital raised to $16 million. The investment will be used to accelerate the deployment of the company’s leading-edge financial wellness support and services among mid-cap and enterprise companies in several industries.
“Payroll is difficult and complex, and companies don’t have the in-house ability to accommodate different on-demand payroll schedules for every employee,” said Andy Sessions, investment partner at Intercept Ventures. “DailyPay’s integrated application works with existing payroll systems and allows employers to seamlessly implement DailyPay with just a few simple steps. DailyPay has also built a top-notch service team that provides users the comprehensive support they need when accessing their earned pay.”
Data shows the average DailyPay user accesses the system approximately one time per week and 94% of employee users self-report they use the product to pay their bills on time, significantly reducing the cycle of bank fees, which gives them the first step toward financial security. Companies are recognizing that real time access to earned wages improves employee retention, satisfaction and attendance, and also a 40% reduction in voluntary turnover when DailyPay is offered.
The DailyPay Movement is rapidly transforming payroll in the U.S. and showing signs of broad appeal to the millions of workers who live paycheck to paycheck, and to their employers who see the benefits of immediate access to earned pay. In 2016, 1% of the nearly 70 million American hourly workers had access to DailyPay, and by the end of 2017 that number grew to 5%. The company expects to scale its operations in response to demand among mid-cap and enterprise companies in a host of industries, including retail, healthcare and services.
“When we launched, we set out to improve the financial security of employees by giving them access to their wages when they need them. Little did we know we would spark a movement,” said Jason Lee, CEO and co-founder of DailyPay. “Whether you’re making six figures or are an hourly wage worker, access to your earned income is quickly proving to be a meaningful benefit that makes a significant difference for employers and their employees – a true win/win.”
DailyPay’s mission is to give employees their first step toward financial security. DailyPay is the pioneer in providing employees real-time access to earned wages across a wide range of industries, including cleaning, healthcare, retail, transportation, and more. With DailyPay, employees can pay bills on time and avoid late fees, helping them 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.
About Intercept Ventures
Intercept Ventures is a leading Silicon Valley based venture capital firm that focuses its investments in cloud, data, energy, financial technology, mobility, and security sectors in the US. Intercept primarily invests in large, under-served markets with innovative products, services and solutions.