DailyPay – Salary to Date by Alexander Gornyi

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The post was originally published in Russian on Startup of the Day. Alexander kindly agreed to republish what we think is of great value to our readers.

The first search engine link says 63% of Americans live paycheck to paycheck. The second claims that there are 78% of them. Whatever number you take, it’s still huge. It’s a number of solvent people who have a salary, after all.

Their financial life is like a hamster in a wheel. They receive a salary, distribute debts, spend the salary, get a minus on a credit card, receive a salary, and all over again. Obviously, the time of getting a salary is critical; even an extra day gets under the skin, and there’s a chance to jump out of the grace period of a bank card. Additionally, an employer suffers too – when the score is zero, the employee clearly loses productivity.

The American #startupoftheday DailyPay and its worldwide analogs offer a solution to this problem. They connect to the HR systems of an enterprise, find out how much a person has already earned and how much he or she will surely earn at the end of the month. Taking into account the whole sum, a person is credited, and on payday, DailyPay automatically writes off its share. In PR, this scheme is usually called not “a loan”, but something like “daily payments”, and the employee pays not “interest for the loan”, but “commission for urgency”. Still, what’s the difference? The point doesn’t change. 

The poor as usual gets poorer. Now, in addition to the usual expenses, he also pays a pretty penny to DailyPay, but compared to a regular credit card, it should be more profitable. The startup risks less and can afford a percentage lower than a regular bank. In addition, sometimes part of the costs are borne by the employer, that is, ultimately by more reasonable colleagues. The company, obviously, doesn’t increase the total budget for payroll.

In the May round, the startup was valued at a round billion dollars. There are at least two clones in Russia. Both so far, as far as I understand, are disproportionately less.

https://www.dailypay.com/ (does not open from Russia)

#mega round # usa # credits #fintech

Startup: DailyPay

Translation : Valeria Stupnikova

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