DailyPay to Expand Earned Wage Access Services to UK

DailyPay will expand its earned wage access (EWA) services to the United Kingdom this fall.

The solution, which will mark the company’s first expansion outside the United States, will initially be offered to DailyPay’s existing clients who have operations in the U.K., the company said in a Monday (Sept. 23) press release.

“Many of our clients and partners are multinational, and they have increasingly expressed the need to offer this valuable benefit to their employees beyond the U.S.,” Josh Durodola, vice president of international at DailyPay, said in the release.

The ability to access earned pay between paydays will offer users greater flexibility in the U.K., where paychecks are often issued monthly, according to the release.

In the U.S., 69% of DailyPay users who previously paid late fees on household bills said they do so less frequently or not at all since they started using the service, the release said.

The company also found that employers who offer DailyPay said it improves hiring and retention, per the release.

“We are thrilled to bring this financial wellness tool to U.K. workers, empowering them to take control of their earned pay and improve their financial well-being,” Durodola said in the release.

DailyPay secured $175 million in funding for its on-demand pay platform in January, saying it would use the money to accelerate growth and expansion into new markets and categories.

By providing wages on a real-time basis, earned wage access provides families with greater protection from unexpected expenses and eliminates the need to turn to loan sharks or pay bank overdraft fees, Rob Nardelli, director of commercial banking and business development at DailyPay, told PYMNTS in a report posted in June 2023.

“For 95% of Americans, the only options they have today would be to turn to those alternatives,” Nardelli said when interviewed for the PYMNTS Intelligence report “Living Paycheck to Paycheck: Real-Time Payments for Financial Health.” “[EWA] represents a way for them not to have to take on debt. They’ve earned the hours and wages. EWA just gives them access.”

In another move, DailyPay said Sept. 16 that it integrated its new Credit Health tool into its app, enabling users to stay on top of their credit status. Credit Health features insights such as credit bureau scores and histories, credit reports, monitoring/alerts and score factors.