DailyPay
| Company type | Private |
|---|---|
| Industry | |
| Founded | 2015 |
| Founders |
|
| Headquarters | New York, NY, U.S.A. |
Key people | Nelson Chai (CEO) |
| Services | On-Demand Pay Earned Wage Access |
Number of employees | 800 (2020[1]) |
| Website | www |
DailyPay is an American technology company founded in 2015, which provides payroll services such as on-demand pay.[2]
History
DailyPay was founded in 2015.[3] The company allows other organizations and payroll providers to offer earned wage access to employees, giving workers wages they have already earned before their scheduled payday.[4] The service is often used by companies with low-wage employees, who work paycheck-to-paycheck, as an alternative to loans.[5][6]
Employees who use the service are charged no fee to arrange a wage or partial wage withdrawal early. Daily Pay also offers a pre-paid Visa debit card which has no fees and offers all wages, if a user has their direct deposits sent to Daily Pay.[7] The company has developed machine learning systems to process large volumes of payroll data, support real-time wage access, and detect potentially fraudulent transactions.[8]
In September 2016, the company raised $5 million in financing during its Series A Round.[9][10] In February 2018, the company raised $9 million in Series B funding.[11]
In 2018, human resources company ADP announced that it would be offering early wage access to its clients through DailyPay.[12]
As of 2020, the company had roughly 500,000 active users, and had partnered with companies such as Burger King, Uber, DoorDash and Shiftgig.[13][14]
In 2021, the company received an honorable mention on Fast Company's "World Changing Ideas Awards".[15]
Lawsuits
On April 14, 2025, New York's Attorney General, Letitia James, filed a lawsuit against DailyPay, accusing the company of engaging in predatory payday lending practices. Specifically, the lawsuit alleges that DailyPay violates New York's usury laws and wage assignment laws by charging excessive fees for accessing pay, resulting in effective interest rates that can exceed 750%.[16]
References
- ^ "Championing Diversity in FinTech: NYC Based DailyPay". 21 June 2020.
- ^ Kauflin, Jeff. "VCs Bet $40 Million On Money App For Those Living Paycheck To Paycheck". Forbes. Retrieved 2021-05-10.
- ^ "FinTech profile: DailyPay, the payroll game-changer | Venture Capital". www.fintechmagazine.com. Retrieved 2021-05-10.
- ^ Harrison, Polly Jean (2021-01-12). "DailyPay: What The Recent CFPB Compliance Regulations Means for Earned Wage Access". The Fintech Times. Retrieved 2021-05-10.
- ^ Sheng, Ellen (2020-03-30). "Companies offer cash-strapped employees daily pay cards and other flex-pay options as a lifeline". CNBC. Retrieved 2021-05-10.
- ^ "Do paycheck advance apps improve financial health?". American Banker. 2019-03-11. Retrieved 2021-05-10.
- ^ Bernard, Tara Siegel (2020-10-02). "Apps Will Get You Paid Early, for a Price". The New York Times. ISSN 0362-4331. Retrieved 2021-05-10.
- ^ Rodrigues, Patricia (Oct 31, 2025). "The Algorithm That Pays You: Inside DailyPay's AI Strategy for On Demand Pay". syncni.com. Retrieved 2026-03-17.
- ^ "Funding Snapshot: DailyPay Raises $5M Series A to Provide Daily Payments to Workers". Wall Street Journal. 2016-09-07. ISSN 0099-9660. Retrieved 2021-05-10.
- ^ Noto, Anthony (September 9, 2016). "This week in N.Y.C. funding news: Cheddar, Away, DailyPay". www.bizjournals.com. Archived from the original on 2020-12-05. Retrieved 2021-05-10.
- ^ "DailyPay Just Raised $9M To Provide Flexibility For When You Want to Get Paid". AlleyWatch. 2018-02-21. Archived from the original on 2021-05-10. Retrieved 2021-05-10.
- ^ "Payroll Quietly Easing Into Trend of Quick-Pay Programs". news.bloombergtax.com. Retrieved 2021-05-10.
- ^ Johnston, Katie (February 10, 2020). "Apps let workers access wages instantly, but at what cost?". BostonGlobe.com. Retrieved 2021-05-10.
- ^ Mann, Sonya (2017-09-14). "This Startup Is an ATM for the Money You Haven't Been Paid Yet". Inc.com. Retrieved 2021-05-10.
- ^ "World Changing Ideas Awards 2021: On The Rise (0–4 Years In Business) Finalists and Honorable Mentions". Fast Company. 2021-05-04. Retrieved 2021-05-10.
- ^ "Attorney General James Sues Payday Lending Companies for Exploiting Workers with Illegal Loans". New York State Attorney General. 2021-04-14. Retrieved 2025-04-14.