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DailyPay’s COO Stacy Greiner — on bringing Earned Wage Entry in all places | by Kailee Costello | Wharton FinTech

Kailee Costello
Wharton FinTech

14 min learn

Oct 10, 2023

In in the present day’s episode, Kailee Costello sits down with Stacy Greiner, Chief Working Officer at DailyPay. DailyPay affords an on-demand pay resolution that helps employers to enhance the monetary well-being of their workforce. DailyPay has over 1000 enterprise shoppers, and over 4 million of those firm’s workers use the DailyPay platform.

“Our shoppers level out that earned wage entry is both the primary or quantity two most adopted profit of their firm … if it’s quantity two, it’s second solely to healthcare.”

Within the episode, Kailee and Stacy focus on:

  • DailyPay’s mission to supply workers with on-demand entry to their earnings

Stacy: For many individuals which are working throughout the nation in the USA, merely ready two weeks or extra for his or her paycheck could cause fairly a bit of economic pressure, and it results in issues like overdraft charges or late charges or curiosity funds and even the necessity to entry payday loans. And so we figured we’re all dwelling in an on-demand world, so why don’t now we have the precise to have our pay on demand as nicely? We don’t imagine that anybody ought to have to attend two weeks; you must instantly have entry to the cash that you just’ve earned. So, at DailyPay, we’re reimagining the best way that cash strikes from the second that work begins. We companion with America’s main employers throughout the nation, from small employers to a number of the largest, and actually work with them to combine into their payroll, time and attendance, and human capital administration techniques, in order that their workers can log in and see real-time “how a lot have I labored” and “how a lot have I earned”.

We provide a first-of-its-kind expertise platform that’s actually bringing earned wage entry to workers throughout the nation, in order that they will see “how a lot have I earned this week?” and know that they’ve entry to it if and once they want it.

  • Why DailyPay’s goal market spans throughout industries

Stacy: I believe there’s in all probability only a few folks we’ve ever talked to that don’t imagine that they need to have entry to the cash they’ve earned once they’ve earned it. And so, actually, the goal market is throughout each trade that employs folks. And we’re actually working with folks throughout eating places, QSRs, hospitality, retail, manufacturing, grocery, and many others — basically any trade that employs folks.

  • Why DailyPay didn’t begin by specializing in a particular trade

Stacy: I believe the type of commonality throughout our shoppers is much less a few particular trade and extra about their mindset. So it actually is the forward-thinking employers who’re placing their workers’ monetary wellness first and are occupied with the position that they play in bringing that soundness to their workers as a result of they know that as workers have much less monetary stress, they’re extra engaged at work. There was a latest research that for Gen Z alone, three out of 4 folks acknowledged that monetary stress has a detrimental affect on their well being. So for those who assume as an employer, you realize, you need folks that really feel nice about their life, really feel nice about working for you, and in flip are actually delivering that positivity to your clients.

  • DailyPay’s income mannequin

Stacy: So we’re working with employers like Goal, Hilton, Kroger, Greenback Tree, Dick’s Sporting Items, and in addition to typical suspects you’d take into consideration like McDonald’s, Taco Bell, and Burger King. So how can we work? We’ve bought a enterprise to enterprise mannequin the place we combine into their timekeeping, their payroll, and their attendance techniques, and thru that integration, we’re capable of see, how a lot have their workers labored to this point this week.

When an worker logs into DailyPay, which they do about as soon as per day on common, they’re actually logging in to see, “how a lot have I labored”, “how far am I within the pay cycle?” And if they should entry that cash, they will achieve this within the DailyPay app. So once they log in, they’ve 3 ways to entry their cash, two of that are free. They both can arrange a subsequent day ACH cost that may be a free switch. They will additionally do a free switch to DailyPay’s Friday Card, which is a pay as you go debit card. Or they will do an immediate switch to an account of their selection, which is a $3.49 flat payment. Consider it as an ATM payment.

I discussed that customers log into DailyPay about as soon as a day, and what we see is that they’re checking their stability to see “how a lot have I earned”, and we additionally see a correlation then within the incentive it’s creating for these workers then to select up extra shifts.

In actual fact, the DailyPay customers at our employer clients are working 10% extra hours on common than their fellow colleagues that aren’t utilizing DailyPay. So it truly is an unimaginable device for them to see the place they’re and in addition a really motivational device by way of serving to them obtain a number of the issues that they’re saving for or payments that they know which are coming.

Then, as well as, past simply earned wage entry, we even have just a few options round free monetary teaching. So customers that wish to higher optimize their money flows in and their money flows out can reap the benefits of that teaching. We even have an auto-save characteristic that customers can arrange — so coming proper out of their earned wages is a set quantity of financial savings that they wish to go into their financial savings account inside the platform as nicely. So employers that wish to reward workers for possibly working much less fascinating shifts or choosing up further hours throughout holidays have that chance to actually reward their workers by the DailyPay platform. Just a few completely different options like which are helpful each for the worker and the employer and type of align each the employer and the worker on what’s greatest for his or her clients.

  • Stacy’s perspective on aggressive place, and the significance of actually “earned wage” entry

Stacy: So EWA, whereas it’s a shared acronym for each early and earned wage entry, we really feel very strongly concerning the significance of actually earned wage entry, as a result of it’s built-in into the employer’s techniques. The worker that’s logging in is aware of that that is cash that they’ve earned, in order that they see it as one other account, just like the way you log into your financial institution and also you see a checking account or a financial savings account. You log in and also you see your earned wage entry account.

So it actually is the most secure and most safe mannequin for the worker, as a result of they know that they’re actually tapping into cash that’s an correct illustration of what they’ve earned so far.

We do additionally companion with banks and monetary establishments in addition to HR tech platforms as nicely, to have the ability to convey earned wage entry by to their clients.They’re an vital a part of the ecosystem in our mission of bringing earned wage entry in all places.

And truthfully, we see type of our largest competitors as employers selecting to do nothing round earned wage entry, which is a danger for them. They’re actually lacking out on the advantages of with the ability to rent quicker and preserve their workers longer. An organization that is ready to have earned wage entry, and ship it by an built-in resolution with DailyPay, is really capable of provide to their workers 100% entry to their earned wages at any level within the pay cycle, which may be very completely different from an early wage entry product, which is able to enable entry to a portion of your cash simply two days early. So we see that basically as a number of the key differentiators, each the strengths of partnerships that now we have throughout the ecosystem of expertise companions and monetary companies companions; actually the arrogance that workers have once they log into DailyPay to know that they’ve entry to 100% of their earned wages at any level within the pay cycle.

  • The longer term for earned wage entry

Stacy: I believe all employers will provide earned wage entry. , we actually are on a mission to convey that to each working American within the nation and past the USA as nicely. And in reality, you realize, it’s fascinating after I speak to our shoppers, they level out that earned wage entry, once they roll it out to their workers, is both the primary or quantity two most adopted profit of their firm. And if it’s quantity two, it’s second solely to healthcare. So you concentrate on the significance that gaining access to earned wages has in your worker base. And it’s no shock, the affect that employers are feeling and the affect that workers are feeling. So, we’re meaningfully persevering with to develop our enterprise shoppers. We’ve got over a thousand enterprise shoppers, simply to present you an concept of scale, with over 4 million of their workers which are a part of the platform. I discussed that we white label our product as nicely to banks and monetary establishments, in order that they’re serving our earned wage entry from DailyPay by to their shoppers as nicely. And Friday, the pay as you go Visa card that I discussed is one other entry that now we have for patrons to have the ability to actually convey that earned wage entry to the purpose of sale. Lastly, I hinted on the worldwide enlargement that we’re exploring. So, you realize, we’re transferring past simply bringing this profit to people who find themselves working inside the USA, recognizing that the on-demand want and tradition exists globally. And so we’re trying, what are the following international locations that we convey our data entry to?

  • The danger for employers that fall behind within the Earned Wage Entry motion

Stacy: We expect that the largest danger, truthfully, is for employers to fall behind within the Earned Wage Entry Motion. You see employers, possibly you’ve seen it as you’re driving down the road, actually put out indicators, “work in the present day, receives a commission in the present day”, as a result of they know the way vital that’s in attracting expertise in in the present day’s continued tight labor market. For employers, we are saying that DailyPay helps them rent quicker, preserve their workers longer, and their workers work more durable whereas they’re there. And we actually see that improve in tenure of the DailyPay workers at these employers. We see the DailyPay workers working 10% extra hours and so it’s an enormous danger for employers to not offer earned wage entry after we know that there’s such a requirement from the worker base. You see thatwithin the traits within the gig economic system; lots of our employers that we’re working with they’re additionally making an attempt to recruit people who find themselves considering “do I choose up a gig economic system job in the present day the place I can do my hours that I set and I receives a commission on the finish of the day? Or do I’m going work for certainly one of my one of many employers who’re a part of the DailyPay ecosystem?” The competitors for excellent workers is hard, and employers have actually discovered DailyPay as a approach to assist differentiate. And on the flip aspect, we see workers as nicely, having large advantages from the DailyPay provide.

In actual fact, we did a research that acknowledged that folks spend higher than $1,000 a 12 months on late charges, bank card funds, even payday mortgage curiosity. And we’re capable of assist workers actually keep away from all of these sorts of prices as a result of they will faucet into their earned wage entry account. They see that as cash that’s theirs that’s sitting in one other account that they will entry.

95% of the DailyPay customers that had been utilizing payday loans are not utilizing payday loans. That’s for us such a tremendous stat and so motivating as a result of this was one thing I heard not too long ago and I simply discover it stunning. However the variety of payday mortgage places on this nation is double the variety of McDonald’s places. So for those who really feel like, gosh, I see McDonald’s in each nook, consider actually how rampant the payday mortgage trade is.

So what we see for employers is providing earned wage entry to their workers is all the time 100% a greater choice than their workers turning to late charges or overdraft funds or curiosity funds.

  • The affect of wage compression in healthcare

Stacy: Over the previous few years with the inflation and actually the growing hourly wages that we see throughout industries, you see completely different industries type of get compressed. And so some industries, the place the hourly wage was a lot increased than say a fast serve restaurant or retail, the QSR and retail industries have actually needed to improve their hourly wages fairly a bit so as to compete and nonetheless keep expertise. So on the similar time, now you concentrate on who’s on the upper finish of hourly wages it was the healthcare staff. And because the retail and QSR and restaurant wages have come up, they’re asking themselves, you realize, gosh, working in healthcare is actually truthfully very demanding, proper? It carries a variety of emotional toll as nicely. And, you realize, once they begin to see these hourly wages compressed, they are saying, you realize, ought to I be switching industries and simply work a way more relaxed and type of quiet job? And so we did some analysis inside our healthcare trade and actually targeted on what we name the “healthcare heroes”, with some analysis round how are they experiencing stress and the stress of economic scenario. It’s probably not shocking that all of them reported having stress from their funds that have been leading to issues like detrimental affect on their sleep or psychological well being or vanity or, bodily well being. We’re folks, so if you’re feeling that stress in your day-to-day life, you’re bringing that to your work as nicely. And when you concentrate on particularly the healthcare trade, we want folks which are on the entrance traces in healthcare to have the vitality to serve the sufferers that they’re there to look after. And so we’ve partnered with a variety of completely different shoppers throughout the healthcare trade who’ve a number of the highest adoption throughout their workers of the DailyPay providing. And you realize, the response that we’re listening to from their workers is tremendous encouraging, they are saying “I’m extra prone to stay at my job if my employer simply affords DailyPay or an on-demand pay profit”. And 64% of them say they’re truly searching for that in a brand new employer. So employers are seeing DailyPay actually as a differentiated approach to entice and retain workers. And workers are getting used to what it feels wish to have entry to the pay that you just earn every day, and simply be in far more management of the funds and payments and prices.

  • DailyPay’s strategic priorities over the approaching years

Stacy: Our major mission is bringing earned wage entry in all places. We’re doing that by an amazing focus of working instantly with employers that wish to provide this to their workers. We’re working with banks and monetary establishments who see earned wage entry as one other kind of account that they could possibly be providing to their, to their clients. , think about for those who log into your retail banking app in your telephone and also you see, okay, I’ve bought my checking account, my financial savings account, and my DailyPay account or your earned wage entry account — you’re actually seeing the complete spectrum of the entire cash that you’ve got that makes up type of your monetary basis. And we see there’s a variety of methods to ship cash out of your accounts. DailyPay is actually one approach to convey cash into your accounts.

So we’re doing an amazing quantity of innovation with banks and monetary companions, empowering by our white label providing a variety of their earned wage entry choices. We’re additionally persevering with to innovate with HR tech companions. So we’ve bought very sturdy partnerships with ADP, with Workday, UKG, SAP, Oracle, and partnering with them on bringing earned wage entry to their shoppers and generally as a white label module inside their choices as nicely.

Then, we’re persevering with to take a look at what are adjacencies that we ought to be additional serving to workers with. So offering entry to their cash, can we additionally present them entry to methods to earn extra money? Do we offer them with smarter, extra clever methods to avoid wasting or make investments? So these are all issues that we’re . And, as well as, how can we higher help our employer shoppers as nicely? Among the wants that they’ve is that they’re actually empowering their frontline staff to greatest serve their clients. And what are the adjoining type of choices round simply earned wage entry, as an illustration, issues like digital tipping and different methods of actually managing their frontline staff, as it may be sophisticated if you’re managing tens of hundreds or a whole bunch of hundreds of workers throughout hundreds of places.

  • Stacy’s journey from her advertising and marketing roles at Dun & Bradstreet and Cisco to COO at DailyPay

Stacy: My journey to COO at DailyPay in all probability started even earlier than my stints in advertising and marketing. I began my profession as an engineer doing software program growth in Silicon Valley. I used to be in product administration, I used to be in expertise consulting, after which type of moved by advertising and marketing and ran a enterprise at Dun & Bradstreet as a normal supervisor and now COO at DailyPay. I believe what’s vital concerning the position of a Chief Working Officer is it truly is about making certain that your organization is balancing each progress and scale. At DailyPay, we’ve been tremendously lucky to have an unimaginable progress fee over the eight years of our existence. We’re at a stage the place scale, not solely to serve our employers throughout the nation, however as we begin to serve employers globally as nicely, is extremely vital. And so I believe it’s actually the type of the cross-functional nature of the journey that I’ve been on that brings all of these capabilities collectively to have the ability to see what are the alternatives actually for progress from a industrial perspective. However foundationally, how can we ensure that we’re constructing not solely the expertise, but additionally on our processes to help the size that we’re accelerating into for the long run.

  • What Stacy’s position as a COO appears to be like like day-to-day

Stacy: It’s type of balancing progress and scale — so actually working throughout our departments on making certain that we’re benefiting from transformation and automation and efficiencies. So actually constructing, taking out type of handbook processes and leveraging expertise and AI to have the ability to do issues loads smarter. However then I’m additionally partnering with our gross sales and our industrial group round “how can we optimize for routes to market?” If our mission is to convey earned wage entry in all places, have we actually arrange the right protection throughout direct promoting into employers themselves, channel promoting by our banking and expertise companions, and actually type of trying throughout the spectrum for alternatives to raised help the best way that we’re driving our progress, the best way that we’re bringing the precise sorts of merchandise to our clients, after which ensuring we’re doing that in a really clever and environment friendly vogue

Try the Episode on the platform of your selection right here: Spotify | Apple Podcasts | Soundcloud

About DailyPay

DailyPay is on a mission to construct a brand new monetary system for everybody. DailyPay delivers an on-demand pay resolution with trendy, insight-driven pay methods that assist America’s main employers to activate their workforce and construct stronger relationships with their workers, in order that they really feel extra engaged, work more durable, and keep longer. DailyPay works to make sure that cash is all the time in the precise place on the proper time for employers, retailers, and monetary establishments. DailyPay is headquartered in New York Metropolis, with operations primarily based in Minneapolis and Belfast.

About Stacy Greiner

Stacy Greiner serves as Chief Working Officer, DailyPay. She most not too long ago served because the Common Supervisor of the Gross sales and Advertising and marketing Options division of Dun & Bradstreet, the place she was liable for all Revenue & Loss. Her expertise spans Senior Govt roles at Cisco, IBM, and Accenture the place she led globally-diverse Product, Advertising and marketing, Engineering, and Information & Analytics organizations. Educated as an Aerospace Engineer at Iowa State College, Greiner additionally holds an MBA from the Massachusetts Institute of Know-how (MIT) Sloan College of Administration. She sits on the board and serves as a member of the Audit Committee of Proto Labs, Inc.

Concerning the Creator

Kailee Costello is an MBA Candidate at The Wharton College, the place she is a part of the Wharton FinTech Podcast workforce. She’s most obsessed with how FinTech is breaking down obstacles to make monetary services extra accessible — notably within the private finance house. Don’t hesitate to succeed in out with questions, feedback, suggestions, and alternatives at kaileec@wharton.upenn.edu.

As all the time, for extra FinTech insights and alternatives to collaborate, please discover us beneath:

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