By Kevin Phillips, VP of Growth
On-Demand Pay (ODP) is clearly the future — there’s no turning back now. But ODP’s success is based on much more than just transferring money before payday.
A successful ODP program is only achievable when the product, technology and experience speak to the needs of both the employer and employee. When that happens — it’s a win-win.
The first win is employees who love the ODP program. A great ODP program results in high adoption. Employers only get value out of the ODP program from the users who adopt.
DailyPay has 300+% higher adoption than any other ODP vendor in the industry. As a result, unlike the Walmart program, DailyPay’s partners show significant turnover improvement (two of our largest partners reduced turnover by 44.7% and 35.6%, as of Jan 2021).
Why does DailyPay have such high adoption?
On the surface, it may sound pretty straightforward. Under the hood, it’s only possible through an extremely complex network of people, integrations, payments, data, technology, partnerships and much more.
The key to a successful ODP program is not earned wage access, savings, bill pay, etc – those are just use cases. It’s the employee’s available balance that holds all the power.
Employees visibility and transparency into their daily earnings (available balance) is the true revolution of the ODP industry. With this visibility, employees can monitor and utilize their future expected income like never before.
Every minute an employee works, they’ve technically earned their money. Pay schedules and paydays are confusing. Until recently, employees have never been able to view or access their earnings as they work.
At DailyPay, we serve a wide range of client partners and employees. Our goal is to maximize value for all types of employees by allowing them to leverage their available balance in real-time, however they need to.
DailyPay’s available balance is the gold standard. 100% of employees eligible for DailyPay can sign up for free and track their earnings as they work.
Our most popular DailyPay feature is not earned wage access — it’s balance alerts. Over 80% of employees who enroll in DailyPay subscribe to balance alerts to receive an update when their employer reports new earnings after each shift.
On average, employees receive five balance updates per week, and will transfer 1-2 times. 20% of employees who subscribe to balance alerts never transfer their earned pay early.
Imagine an employee completing a long, difficult shift. As she leaves work, she receives a push notification, “You have an updated available balance in your DailyPay account.” This little dose of daily satisfaction can go a long way to increase motivation.
After receiving the balance alert, the first thing she does is plan. Do I need this money now? Do I have enough cushion this month to save? Do I need to pick up another shift before payday?
She can transfer her balance, save it, track it and more. The available balance is what provides financial security and confidence for all types of employees, regardless of salary or financial situation.
74% of DailyPay users say having visibility into their earned income has helped reduce their financial stress, making them more productive and motivated at work.
However, not all ODP available balances are created equal. Employees only get value from their available balance if it’s 100% of their daily earnings. That is great information.
No employee can plan financially with only 50% access or a fixed amount each pay period. That’s like trying to complete a puzzle with only half the pieces.
The other major differentiator of DailyPay’s available balance is upcoming paydays. For employees who transfer early, it’s critical they have full transparency into what their remaining balance will be on payday.
DailyPay is the only ODP vendor in the industry that does not deduct or debit employee accounts on payday. In those models, employees have to guess their remaining paycheck amount on payday, and manually connect the data together among multiple systems.
Besides being the only 100% compliant ODP solution, DailyPay’s patented integrations platform allows all employees full visibility into their upcoming paycheck amount — days ahead of payday.
Payday clarity is a game-changer. Employees who use DailyPay no longer have to stress each payday morning trying to guess what their paycheck will look like. Employers have less friction and fewer issues to deal with on payday.
This is the power of a gold standard available balance. Real-time earnings and payday insights in the palm of every employee’s hand. That’s the win-win.
For the employer, this win-win creates a positive growth impact that compounds over time. Winning employees help their company win. Similar to compounding interest in investing — the sooner a company launches an on-demand pay program, the greater the ROI in both the short and long term.
In 2021, we’re expanding our available balance into a larger feature called TRACK. More insights, tools and resources to even further help our valued client partners and their employees.