Dailypay Business Model and SWOT Analysis: How Does Dailypay Make Money?

Overview

Dailypay, based in New York, is the first company to provide workers with rapid access to their earned income in a variety of sectors.

Most paycheck technology providers now connect Dailypay to the customers. As a result, one in six American citizens now has access to the use of this service.

This business helps employees get their paycheck on time with no additional fees. Moreover, employees benefit financially while their organizations benefit from increased employee satisfaction, loyalty, and promotion thanks to the benefits.

Company Profile

Company Name DailyPay, Inc.
Website https://www.dailypay.com/
Founded 2015
Founders Jason Lee & Robert Law – Co-Founder
Key People Irene Hendricks – Chief People Officer, Scot Parnell – Chief Financial Officer, Ajay Chidrawar – Vice President of Customer Success, Gary Pearcy – Vice President of Operations, Jeff Hudesman – Vice President of Information Security, Kevin Phillips – Vice President of Products, Matthew Kopko – Vice President of Public Policy
Headquarter New York, United States
Company Revenue $105 million
Key Competitors Payactiv, G2 Deals, Branch, Tapcheck, Asset-Map, Even, Peanut Butter, Paytient, Spring, Sprout Solution HR

What is Dailypay? A Brief History

With its cutting-edge platform, Dailypay is already on a vision to establish a new financial sector that is beneficial to all participants in society. In addition, having partnered with some of America’s most prestigious companies, the business is known to be a specialist in on-demand pay.

The firm seeks to guarantee that income will always be in the safest vault at the right period for workers, businesses, retailers, or financial firms via its data storage infrastructure, patented financing model, and endpoint connecting of more than 6,000 of them.

From the time a worker begins their shift, the company is developing a system and a mentality that will allow them to revolutionize the way income travels.

Jason Lee, a founder of Dailypay, established the business in 2015 in response to the increased need from workers who wanted immediate access to their earned income.

Additionally, with the goal of offering workers greater choice in what they receive and assisting them in achieving financial stability, Dailypay created a digital platform that would enable users to manage pending earnings.

Timely payouts are essential to Dailypay’s growth and prosperity; therefore, they required a payment platform that could accomplish all that.

How Does Dailypay Work and What Does it Offer?

So how exactly does Dailypay work?

In collaboration with companies, Dailypay provides access to its service via the business’s current Human resource platform or the mobile application to their workers.

Subsequently, the company’s management team is no longer involved in the process of transferring payments to the employees, since Dailypay processes the transactions.

In most cases, customers make transactions by using the application because they have an urgent need for cash. For example, some unexpected expenses include: a rental payment due before the following pay period and a lack of funds; or an unexpected medical bill.

As a result, the company’s business approach depends on being able to pay workers immediately into their accounts.

What does Dailypay offer to its consumers?

The company has climbed to the forefront of this booming sector as a result of its commitment to developing a really immediate realized salary distribution platform for personnel.

Generally, new start-ups that have difficulty finding and retaining talented employees might prefer a daily paycheck as a means of attracting new competent personnel.

There are times when you need more money than what a regular paycheck can provide. However, there are not many applications that would let you borrow money against your next payment, yet Dailypay can do it all.

Besides Dailypay, other comparable applications do not offer users up to half of their common payouts.

However, it may be more restrictive than some other solutions. Dailypay is only available to employees who work for companies that are their partners. Plus, the remaining benefits of financial wellness are restricted to a few characteristics that assist you in conserving.

When compared to company-based applications like Payactiv, which provide restricted advanced payment services independent of the employer, Dailypay provides free financial counseling.

Dailypay Business Model

The company strategy relies on Digital Disbursements since it gives the customers peace of mind realizing that they can depend on Dailypay to provide them with money whenever they require it.

As a result, making transactions using Digital Disbursements is perfectly smooth, giving the customers the confidence that the money is efficiently well-transferred.

Payment alternatives offered by Digital Disbursements include:

  • Bank Account: NOW® Network or Fiserv’s ACH allow payments to be transmitted straight towards a bank account in U.S. financial institutions. When using this approach, funds may be credited in real-time to the bank account, or as soon as the following working day.
  • Contact information (mobile phone number or email address): In the event that you are faced with unknown account information, you can send the payments using the mobile phone number or email address of the designated recipient. Social tokens from Fiserv are used to make it easier for people to find their accounts at a bank or credit union.
  • Using a debit card: There are a variety of ways to make payments these days. The most common is via electronic money transfer networks like Visa and Mastercard. In most cases, these funds are sent out immediately.
  • Physical check option: If you prefer having your money in the form of a check, there is an option for that.

There is no matter whatsoever payment option a user chooses; the cash will arrive quickly and at a low cost.

Dailypay Unique Selling Propositions

When you make money, it goes into a bank account that is updated at each working day’s end day. If your company makes use of Dailypay, you have the option to withdraw money from your account at any moment and deposit them into your bank account or use a debit card.

  • Receiving up to 100 percent of your generated salary at any point throughout the payment period is possible.
  • As a precautionary measure, Dailypay takes taxation fees and other withholdings out of your paychecks.
  • Funds may be transferred immediately or the next working day.

Transaction Fees

Upon the website, Dailypay does not indicate the amount of expected transaction cost that will be settled in advance, but you need to pay for its charged fees. According to other evaluations, the fees for next-day and same-day financing are roughly $1.99 and $2.99, respectively. This price is comparable to that of other similar applications.

The problem is that the company does not provide customer service’s contact number, so we could not verify the correctness of these prices by calling them.

How Does Dailypay Make Money?

Dailypay provides access to all of an employee’s earned salaries, but the business takes a percentage for each advancement that ranges from $1.25 to $2.99. On-the-spot advance at $66 is available to workers, but they may only use it once per week.

Dailypay SWOT Analysis

With SWOT analysis, the firm’s internal and external factors are analyzed for their potential influence on the company. Opportunities and threats are often mentioned when it comes to external elements, while strengths and weaknesses are typically analyzed for internal issues.

Aside from that, this method is the most appropriate tool for generating concepts and making long-term plans. It is highly good to execute the SWOT analysis with a specific aim or inquiry, as this will boost the effectiveness of the evaluation.

Strengths

  • The company’s app is currently utilized by over 100 companies and over 500,000 workers throughout the United States
  • The company has raised a series of funding exceeding $800 million
  • The feature allows users to obtain 100% of their earnings
  • A Social Security number is not required to utilize the platform
  • Users can benefit from automated savings
  • The firm employs over 400 employees
  • The fintech team takes allegations of fraudulent conduct extremely seriously
  • A variety of payment alternatives are available on the app
  • Acceptance and approval of payments can be done by multiple users.

Weaknesses

  • The service is only available for the company’s collaboration
  • Customer support is difficult to contact
  • Numerous individuals, who grade a 5-stars review, always leave terrible comments. Thus, Make sure you don’t get swayed by the app’s rating
  • Some employees dislike daily payments, opting for a greater sum of the salary
  • Without a certain Visa card, you will be unable to get your money immediately.

Opportunities

  • Dailypay is considering going public with an IPO.
  • Job openings are filled 53 percent more quickly by companies who provide Dailypay than by those that do not.
  • Fintech has chosen Digital Disbursements as an effective and adaptable creative solution for transferring payments swiftly, safely, and via numerous payment options.
  • The fintech selects Digital Disbursements, an efficient and flexible digital solution for sending payments quickly, securely, and through multiple payment methods.
  • The corporate is developing technology and attitude to reinvent how money transfers from the minute work begin
  • There are approximately 6,000 financial terminals connected to its huge data network and unique finance methodology.

Threats

  • Payroll businesses, banks that impose payday lenders, and overdraft fees are competitors of Dailypay.
  • In the Financial Services sector, Dailypay is ranked 357 out of 2549. Customer satisfaction with the firm is moderately low, with a score of 1.7 out of 5 stars, making the company needs the improvement gap in this area.
  • Other nations cannot easily access the company’s current website.
  • Because of the monthly essential obligations like mortgage, auto loans, rental fees, and utility bills, employees are unable to accept daily pay.