DailyPay announces today that it has recently signed a Memorandum of Understanding (MOU) with the State of California, the largest state and jurisdiction in the nation, and the largest potential market for on-demand pay services. The agreement, which was negotiated and signed with California’s new Department of Financial Protection and Innovation (DFPI), provides a framework for quarterly reporting to the state, and it confirms the terms of DailyPay’s service offering to California residents.
“As the largest provider in this market, we believe that this memorandum and our data will help inform responsible potential future rulemaking in this novel space,” said Jason Lee, CEO of DailyPay. “This sets the stage for our continued collaboration with California, and we are grateful to California for their nation-leading innovative approach to regulation of emerging technologies.”
The MOU confirms the terms of DailyPay’s offerings in California, provides for quarterly reporting to the state, and establishes additional consumer safeguards like state-specific disclosures for California consumers. The DFPI has referred to the MOUs signed during this process as “the first agreements of their kind between the fintechs and a state regulator.”
“We are impressed by California’s continued ingenuity in its regulatory process,” said Matthew Kopko, Vice President of Public Policy for DailyPay. “We commend California’s data-driven approach and, as the largest provider of these services in the industry, we are happy to be an active participant. As governments across the nation struggle to keep up with ever-changing technology, California has put in place flexible structures that support continued innovation in the state.”
With this MOU, DailyPay continues to be on the cutting edge of innovation and regulatory partnership. DailyPay notes that it is not supervised, approved or endorsed by the DFPI in any way.