Home Fintech DailyPay’s COO Stacy Greiner — on bringing Earned Wage Entry in all places | by Kailee Costello | Wharton FinTech | Oct, 2023

DailyPay’s COO Stacy Greiner — on bringing Earned Wage Entry in all places | by Kailee Costello | Wharton FinTech | Oct, 2023

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DailyPay’s COO Stacy Greiner — on bringing Earned Wage Entry in all places | by Kailee Costello | Wharton FinTech | Oct, 2023

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In right this moment’s episode, Kailee Costello sits down with Stacy Greiner, Chief Working Officer at DailyPay. DailyPay provides an on-demand pay answer that helps employers to enhance the monetary well-being of their workforce. DailyPay has over 1000 enterprise purchasers, and over 4 million of those firm’s workers use the DailyPay platform.

“Our purchasers 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 talk about:

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

Stacy: For many individuals which can be working throughout the nation in america, 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 residing in an on-demand world, so why don’t we have now the correct to have our pay on demand as properly? We don’t consider that anybody ought to have to attend two weeks; it is best to 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 accomplice 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 after they want it.

  • Why DailyPay’s goal market spans throughout industries

Stacy: I believe there’s most likely only a few individuals we’ve ever talked to that don’t consider that they need to have entry to the cash they’ve earned after they’ve earned it. And so, actually, the goal market is throughout each trade that employs individuals. And we’re actually working with individuals throughout eating places, QSRs, hospitality, retail, manufacturing, grocery, and so forth — primarily any trade that employs individuals.

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

Stacy: I believe the sort of commonality throughout our purchasers is much less a couple of 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 eager about the function 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 current examine that for Gen Z alone, three out of 4 individuals acknowledged that monetary stress has a detrimental impression on their well being. So in the event you suppose as an employer, you understand, you need people who 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 common suspects you’d take into consideration like McDonald’s, Taco Bell, and Burger King. So how will we work? We’ve acquired a enterprise to enterprise mannequin the place we combine into their timekeeping, their payroll, and their attendance techniques, and thru that integration, we’re in a position to 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 after they log in, they’ve 3 ways to entry their cash, two of that are free. They both can arrange a subsequent day ACH fee that may be a free switch. They’ll additionally do a free switch to DailyPay’s Friday Card, which is a pay as you go debit card. Or they will do an prompt switch to an account of their alternative, 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 choose up extra shifts.

The truth is, 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 can be coming.

Then, as well as, past simply earned wage entry, we even have a couple of options round free monetary teaching. So customers that need 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 need to go into their financial savings account throughout the platform as properly. So employers that need to reward workers for perhaps working much less fascinating shifts or choosing up further hours throughout holidays have that chance to actually reward their workers by way of the DailyPay platform. A couple of completely different options like which can be helpful each for the worker and the employer and sort 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 in regards to 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, so 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 thus far.

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

And truthfully, we see sort 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 maintain their workers longer. An organization that is ready to have earned wage entry, and ship it by way of an built-in answer with DailyPay, is actually in a position to supply to their workers 100% entry to their earned wages at any level within the pay cycle, which could be very completely different from an early wage entry product, which can enable entry to a portion of your cash simply two days early. So we see that actually as a number of the key differentiators, each the strengths of partnerships that we have now throughout the ecosystem of expertise companions and monetary companies companions; actually the arrogance that workers have after 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 supply earned wage entry. You realize, we actually are on a mission to carry that to each working American within the nation and past america as properly. And in reality, you understand, it’s attention-grabbing once I discuss to our purchasers, they level out that earned wage entry, after 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 consider the significance that gaining access to earned wages has in your worker base. And it’s no shock, the impression that employers are feeling and the impression that workers are feeling. So, we’re meaningfully persevering with to broaden our enterprise purchasers. We now have over a thousand enterprise purchasers, simply to offer you an concept of scale, with over 4 million of their workers which can be a part of the platform. I discussed that we white label our product as properly to banks and monetary establishments, so that they’re serving our earned wage entry from DailyPay by way of to their purchasers as properly. And Friday, the pay as you go Visa card that I discussed is one other entry that we have now for patrons to have the ability to actually carry that earned wage entry to the purpose of sale. Lastly, I hinted on the worldwide growth that we’re exploring. So, you understand, we’re transferring past simply bringing this profit to people who find themselves working inside america, recognizing that the on-demand want and tradition exists globally. And so we’re trying, what are the subsequent international locations that we carry our data entry to?

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

Stacy: We expect that the most important danger, truthfully, is for employers to fall behind within the Earned Wage Entry Motion. You see employers, perhaps you’ve seen it as you’re driving down the road, actually put out indicators, “work right this moment, receives a commission right this moment”, as a result of they know the way essential that’s in attracting expertise in right this moment’s continued tight labor market. For employers, we are saying that DailyPay helps them rent quicker, maintain their workers longer, and their workers work more durable whereas they’re there. And we actually see that enhance 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 developments within the gig financial system; lots of our employers that we’re working with they’re additionally making an attempt to recruit people who find themselves pondering “do I decide up a gig financial system job right this moment 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 means to assist differentiate. And on the flip aspect, we see workers as properly, having super advantages from the DailyPay supply.

The truth is, we did a examine that acknowledged that individuals spend larger than $1,000 a 12 months on late charges, bank card funds, even payday mortgage curiosity. And we’re in a position to 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 just lately 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 in the event you 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 at all times 100% a greater possibility than their workers turning to late charges or overdraft funds or curiosity funds.

  • The impression of wage compression in healthcare

Stacy: Over the previous few years with the inflation and actually the rising hourly wages that we see throughout industries, you see completely different industries sort of get compressed. And so some industries, the place the hourly wage was a lot larger than say a fast serve restaurant or retail, the QSR and retail industries have actually needed to enhance their hourly wages fairly a bit as a way to compete and nonetheless keep expertise. So on the identical time, now you consider 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 understand, gosh, working in healthcare is actually truthfully very nerve-racking, proper? It carries plenty of emotional toll as properly. And, you understand, after they begin to see these hourly wages compressed, they are saying, you understand, ought to I be switching industries and simply work a way more relaxed and sort of quiet job? And so we did some analysis inside our healthcare trade and actually centered 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 stunning that all of them reported having stress from their funds that had been leading to issues like detrimental impression on their sleep or psychological well being or shallowness or, bodily well being. We’re individuals, so whenever you’re feeling that stress in your day-to-day life, you’re bringing that to your work as properly. And when you consider particularly the healthcare trade, we want individuals which can be on the entrance strains in healthcare to have the power to serve the sufferers that they’re there to look after. And so we’ve partnered with quite a lot of completely different purchasers throughout the healthcare trade who’ve a number of the highest adoption throughout their workers of the DailyPay providing. And you understand, the response that we’re listening to from their workers is tremendous encouraging, they are saying “I’m extra more likely to stay at my job if my employer simply provides 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 technique 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 way of an amazing focus of working instantly with employers that need to supply 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 may very well be providing to their, to their clients. You realize, think about in the event you log into your retail banking app in your cellphone and also you see, okay, I’ve acquired my checking account, my financial savings account, and my DailyPay account or your earned wage entry account — you’re actually seeing the total spectrum of all the cash that you’ve got that makes up sort of your monetary basis. And we see there’s plenty of methods to ship cash out of your accounts. DailyPay is actually one technique to carry cash into your accounts.

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

Then, we’re persevering with to have a look at what are adjacencies that we needs to be additional serving to workers with. So offering entry to their cash, will we additionally present them entry to methods to earn more cash? Do we offer them with smarter, extra clever methods to avoid wasting or make investments? So these are all issues that we’re taking a look at. And, as well as, how will we higher assist our employer purchasers as properly? A few of the wants that they’ve is that they’re actually empowering their frontline staff to greatest serve their clients. And what are the adjoining sort of choices round simply earned wage entry, for example, issues like digital tipping and different methods of actually managing their frontline staff, as it may be difficult whenever you’re managing tens of hundreds or lots of 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 most likely started even earlier than my stints in advertising and marketing. I began my profession as an engineer doing software program improvement in Silicon Valley. I used to be in product administration, I used to be in expertise consulting, after which sort of moved by way of advertising and marketing and ran a enterprise at Dun & Bradstreet as a common supervisor and now COO at DailyPay. I believe what’s essential in regards to the function of a Chief Working Officer is it truly is about guaranteeing that your organization is balancing each progress and scale. At DailyPay, we’ve been tremendously lucky to have an unimaginable progress charge 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 properly, is extremely essential. And so I believe it’s actually the sort 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 business perspective. However foundationally, how will we guarantee that we’re constructing not solely the expertise, but additionally on our processes to assist the size that we’re accelerating into for the long run.

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

Stacy: It’s sort of balancing progress and scale — so actually working throughout our departments on guaranteeing that we’re making the most of transformation and automation and efficiencies. So actually constructing, taking out sort of guide processes and leveraging expertise and AI to have the ability to do issues lots smarter. However then I’m additionally partnering with our gross sales and our business group round “how will we optimize for routes to market?” If our mission is to carry earned wage entry in all places, have we actually arrange the correct protection throughout direct promoting into employers themselves, channel promoting by way of our banking and expertise companions, and actually sort of trying throughout the spectrum for alternatives to raised assist the best way that we’re driving our progress, the best way that we’re bringing the correct 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 alternative 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 answer with fashionable, insight-driven pay methods that assist America’s main employers to activate their workforce and construct stronger relationships with their workers, so that they really feel extra engaged, work more durable, and keep longer. DailyPay works to make sure that cash is at all times in the correct 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 just lately served because the Common Supervisor of the Gross sales and Advertising and marketing Options division of Dun & Bradstreet, the place she was answerable 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 Expertise (MIT) Sloan Faculty of Administration. She sits on the board and serves as a member of the Audit Committee of Proto Labs, Inc.

Concerning the Writer

Kailee Costello is an MBA Candidate at The Wharton Faculty, the place she is a part of the Wharton FinTech Podcast group. She’s most enthusiastic about how FinTech is breaking down obstacles to make monetary services extra accessible — significantly within the private finance area. Don’t hesitate to achieve out with questions, feedback, suggestions, and alternatives at kaileec@wharton.upenn.edu.

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

Wharton FinTech: Medium Weblog | Twitter | Our Web site | LinkedIn

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