DailyPay Platform
Small Business 
Cycle
Tips 
Perks 
Waiting two weeks for a paycheck doesn’t make sense when bills arrive every day.
Life happens between paydays, and employees waiting to access money they’ve already earned creates unnecessary financial stress.
What is on-demand pay?
On-Demand Pay—also known as earned wage access (EWA)—lets employees access wages they’ve already earned before their scheduled payday.1
Is on-demand pay the same as DailyPay?
A common question people ask is, “Is on-demand pay DailyPay?”
DailyPay is a leading on-demand pay provider, while “on-demand pay” is the overall category name. Think of it like tissues and Kleenex: DailyPay built the platform that pioneered how modern workers access their earned income.
How on-demand pay works, step by step
The process behind on-demand pay is seamless, secure, and fits directly into existing payroll systems. Here’s how it works from start to finish:
Step 1: An employee works and completes a shift:
They go to work, clock in, and finish their shift as usual.
Step 2: DailyPay calculates employees’ shift earnings and makes a portion of their earned pay available to them.
DailyPay integrates with an employer’s time-tracking and payroll systems. As their hours are logged and reported, the app calculates their net earnings, accounting for estimated taxes and withholdings.
Step 3: The employee requests a transfer.
When they need to access their earned pay, employees can log in to the DailyPay app, check their balance, and choose how much they want to transfer and when they want to receive it.
- Instant transfers: Sent immediately for a fee.
- Next business day transfers: Standard transfers that arrive in their account on the next business day for free.
Step 4: Get the rest of their check on payday.
On regular payday, payroll will process as usual. The employee will receive their remaining paycheck balance, minus the amount accessed early and any applicable fees.
Because on-demand pay integrates directly with an employer’s existing platforms like human capital management (HCM) systems and payroll, it doesn’t alter or replace these systems or require employers to make any major changes to how they run payroll.
On-Demand Pay vs. earned wage access vs. pay advances
With so many terms floating around, financial technology can feel confusing. Let’s take a look at the difference:
On-Demand Pay and earned wage access refer to the exact same benefit. They provide safe, transparent access to an employee’s earned pay.
Conversely, payday loans can trap borrowers in cycles of high-interest debt, and traditional payroll advances create administrative burdens for employers.
What does on-demand pay cost?
Clear financial tools require complete transparency. So, does on-demand pay charge a fee?
Here’s how on-demand pay fees from DailyPay work:
- No-fee options always exist: Workers can choose a standard transfer that delivers their money on the next business day at zero cost.
- Instant transfers carry a flat fee: If you need funds immediately, instant transfers usually cost a flat fee—typically around $2.99 to $3.49 per transaction.
For employers, offering on-demand pay as a financial wellness benefit doesn’t disrupt cash flow or change working capital requirements, making it a simple, cost-effective benefit to implement.
The benefits of on-demand pay
Providing flexible access to pay changes how people relate to their work and their personal finances.
For employees: Control and peace of mind
- Closes cash-flow gaps: Unexpected car repairs, medical copays, or utility bills don’t wait for payday. On-Demand Pay bridges the gap safely. 85% of users say they have been able to handle a financial emergency without going into debt because of DailyPay.
- Eliminates costly fees: By giving workers access to their own money, On-Demand Pay helps users avoid costly alternatives. DailyPay users say they’re saving over $525 a year on average with On-Semand Pay by avoiding high cost alternatives like late fees, overdraft fees, payday loans, and more.
- Reduces financial stress: When employees have more control over their money, they can reduce their financial stress. 88% of users say they feel less stressed about money day-to-day since they started using DailyPay.
For employers: Stronger teams and better retention
When businesses support their employees’ financial health, everyone wins.
- Reduces turnover: Financial stress is a top reason workers leave their jobs. Employers offering DailyPay see a reduction in turnover. 68% of users say they are more likely to stay at a job that has DailyPay.
- Improve hiring: Offering on-demand pay serves as a powerful recruiting tool. Nearly half (47%) of DailyPay clients say it’s important within their organization to increase recruitment speed/attractiveness.
- Boosts employee motivation: Employees who aren’t worrying about how to pay for groceries or gas are more focused, engaged, and present at work. 57% of users say DailyPay makes them more motivated at work.
How to get on-demand pay
Because on-demand pay connects directly to company time-tracking systems, it is provided as an employer-sponsored benefit.
If you’re an employee
- Check your benefits: Ask your HR or payroll representative if your company currently offers DailyPay or another on-demand pay option.
- Download the app: If your employer offers DailyPay, download the app, create your account, and link your preferred payout method.
- Request on-demand pay: If your company doesn’t offer it yet, let your HR team know you’d like to see on-demand pay added to your employee benefits package.
If you’re an employer
Implementing on-demand pay is straightforward. Modern platforms integrate directly into your existing payroll and HCM software without requiring changes to your funding schedules, payroll processing times, or tax workflows.
Frequently Asked Questions
-
Is on-demand pay the same as DailyPay?
DailyPay is the industry leading on-demand pay provider. On-Demand Pay is part of DailyPay’s financial wellness offerings that support your employees.
-
Does on-demand pay charge a fee?
This depends on the provider. In the case of DailyPay’s On-Demand Pay platform, we offer a free, next business day transfer option or an instant transfer for a fee.
-
How will on-demand pay help my employees?
On-Demand Pay offers flexible control over earned income and helps avoid costly overdraft fees or payday loans. For employers, it drives employee retention, speeds up hiring, and reduces workplace stress.
1 Fee may apply. :DailyPay, 2020
