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

Within the episode, Kailee and Stacy focus on:

• DailyPay’s mission to supply staff 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 dwelling in an on-demand world, so why don’t now we have the proper to have our pay on demand as nicely? We don’t imagine 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 way in which 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 methods, in order that their staff 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 really bringing earned wage entry to staff throughout the nation, in order that they’ll 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 feel 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, really, 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 — primarily any trade that employs folks.

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

Stacy: I feel the form of commonality throughout our purchasers is much less a few particular trade and extra about their mindset. So it really is the forward-thinking employers who’re placing their staff’ monetary wellness first and are fascinated about the function that they play in bringing that soundness to their staff as a result of they know that as staff have much less monetary stress, they’re extra engaged at work. There was a latest examine that for Gen Z alone, three out of 4 folks acknowledged that monetary stress has a damaging impression on their well being. So in case you assume as an employer, you understand, you need those who really feel nice about their life, really feel nice about working for you, and in flip are actually delivering that positivity to your prospects.

• 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’ll take into consideration like McDonald’s, Taco Bell, and Burger King. So how can we work? We’ve obtained a enterprise to enterprise mannequin the place we combine into their timekeeping, their payroll, and their attendance methods, and thru that integration, we’re capable of see, how a lot have their staff labored thus far 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’ll accomplish that 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 will 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’ll do an on the spot 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 staff then to choose up extra shifts.

In truth, the DailyPay customers at our employer prospects 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 likewise a really motivational device when it comes to 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 just a few options round free monetary teaching. So customers that need to higher optimize their money flows in and their money flows out can benefit from 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 nicely. So employers that need to reward staff for possibly working much less fascinating shifts or selecting up additional hours throughout holidays have that chance to essentially reward their staff by means of the DailyPay platform. A couple of completely different options like which can be helpful each for the worker and the employer and form of align each the employer and the worker on what’s finest for his or her prospects.

• Stacy’s perspective on aggressive place, and the significance of really “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 really earned wage entry, as a result of it’s built-in into the employer’s methods. 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, much 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 really is the most secure and most safe mannequin for the worker, as a result of they know that they’re really tapping into cash that’s an correct illustration of what they’ve earned up to now.

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

And truthfully, we see form of our greatest 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 hold their staff longer. An organization that is ready to have earned wage entry, and ship it by means of an built-in resolution with DailyPay, is actually capable of supply to their staff 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 permit 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; really the boldness that staff 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 long run for earned wage entry

Stacy: I feel all employers will supply earned wage entry. You realize, we actually are on a mission to convey that to each working American within the nation and past america as nicely. And in reality, you understand, it’s attention-grabbing once I speak to our purchasers, they level out that earned wage entry, once they roll it out to their staff, 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 accessing earned wages has in your worker base. And it’s no shock, the impression that employers are feeling and the impression that staff are feeling. So, we’re meaningfully persevering with to broaden our enterprise purchasers. We have now over a thousand enterprise purchasers, simply to provide you an concept of scale, with over 4 million of their staff which can be 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 means of to their purchasers 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 growth that we’re exploring. So, you understand, we’re shifting 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 wanting, what are the subsequent nations that we convey our information entry to?

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

Stacy: We predict 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 at present, receives a commission at present”, as a result of they know the way necessary that’s in attracting expertise in at present’s continued tight labor market. For employers, we are saying that DailyPay helps them rent quicker, hold their staff longer, and their staff work more durable whereas they’re there. And we really see that improve in tenure of the DailyPay staff at these employers. We see the DailyPay staff working 10% extra hours and so it’s an enormous danger for employers to not offer earned wage entry once we know that there’s such a requirement from the worker base. You see thatwithin the tendencies within the gig financial system; a lot 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 at present the place I can do my hours that I set and I receives a commission on the finish of the day? Or do I am going work for one among my one of many employers who’re a part of the DailyPay ecosystem?” The competitors for excellent staff is hard, and employers have actually discovered DailyPay as a manner to assist differentiate. And on the flip aspect, we see staff as nicely, having great advantages from the DailyPay supply.

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

95% of the DailyPay customers that had been utilizing payday loans are not utilizing payday loans. That’s for us such an incredible stat and so motivating as a result of this was one thing I heard not too long ago and I simply discover it surprising. However the variety of payday mortgage places on this nation is double the variety of McDonald’s places. So in case 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 staff is at all times 100% a greater possibility than their staff 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 growing hourly wages that we see throughout industries, you see completely different industries form of get compressed. And so some industries, the place the hourly wage was a lot greater than say a fast serve restaurant or retail, the QSR and retail industries have actually needed to improve 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 employees. And because the retail and QSR and restaurant wages have come up, they’re asking themselves, you understand, gosh, working in healthcare is de facto truthfully very demanding, proper? It carries numerous emotional toll as nicely. And, you understand, once 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 form 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 state of affairs. It’s not likely shocking that all of them reported having stress from their funds that had been leading to issues like damaging impression on their sleep or psychological well being or shallowness or, bodily well being. We’re folks, so once you’re feeling that stress in your day-to-day life, you’re bringing that to your work as nicely. And when you consider particularly the healthcare trade, we want folks which can be on the entrance traces in healthcare to have the vitality to serve the sufferers that they’re there to take care of. And so we’ve partnered with quite a few completely different purchasers throughout the healthcare trade who’ve a number of the highest adoption throughout their staff of the DailyPay providing. And you understand, the response that we’re listening to from their staff 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 really as a differentiated strategy to appeal to and retain staff. And staff are getting used to what it feels prefer to have entry to the pay that you just earn every day, and simply be in way more management of the funds and payments and prices.

• DailyPay’s strategic priorities over the approaching years

Stacy: Our main mission is bringing earned wage entry in all places. We’re doing that by means of an amazing focus of working immediately with employers that need to supply this to their staff. We’re working with banks and monetary establishments who see earned wage entry as one other kind of account that they might be providing to their, to their prospects. You realize, think about in case you log into your retail banking app in your telephone and also you see, okay, I’ve obtained 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 all the cash that you’ve that makes up form of your monetary basis. And we see there’s numerous methods to ship cash out of your accounts. DailyPay is de facto one strategy to convey cash into your accounts.

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

Then, we’re persevering with to have a look at what are adjacencies that we ought to be additional serving to staff with. So offering entry to their cash, can we additionally present them entry to methods to earn more cash? Do we offer them with smarter, extra clever methods to save lots of or make investments? So these are all issues that we’re . And, as well as, how can we higher help our employer purchasers as nicely? Among the wants that they’ve is that they’re actually empowering their frontline employees to finest serve their prospects. And what are the adjoining form of choices round simply earned wage entry, for example, issues like digital tipping and different methods of actually managing their frontline employees, as it may be difficult once you’re managing tens of hundreds or a whole lot of hundreds of staff 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 form of moved by means of advertising and marketing and ran a enterprise at Dun & Bradstreet as a common supervisor and now COO at DailyPay. I feel what’s necessary in regards to the function of a Chief Working Officer is it truly is about guaranteeing that your organization is balancing each development and scale. At DailyPay, we’ve been tremendously lucky to have an unimaginable development price 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 necessary. And so I feel it’s actually the form 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 really for development from a industrial perspective. However foundationally, how can we make it possible for we’re constructing not solely the expertise, but additionally on our processes to help the size that we’re accelerating into for the longer term.

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

Stacy: It’s form of balancing development and scale — so actually working throughout our departments on guaranteeing that we’re profiting from transformation and automation and efficiencies. So actually constructing, taking out form of handbook processes and leveraging expertise and AI to have the ability to do issues quite a bit 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 correct protection throughout direct promoting into employers themselves, channel promoting by means of our banking and expertise companions, and actually form of wanting throughout the spectrum for alternatives to higher help the way in which that we’re driving our development, the way in which that we’re bringing the proper sorts of merchandise to our prospects, after which ensuring we’re doing that in a really clever and environment friendly style

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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 staff, in order 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 proper 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 Normal Supervisor of the Gross sales and Advertising and marketing Options division of Dun & Bradstreet, the place she was chargeable for all Revenue & Loss. Her expertise spans Senior Government roles at Cisco, IBM, and Accenture the place she led globally-diverse Product, Advertising and marketing, Engineering, and Knowledge & 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 Creator

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 limitations to make monetary services extra accessible — significantly within the private finance area. Don’t hesitate to succeed in out with questions, feedback, suggestions, and alternatives at kaileec@wharton.upenn.edu.

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