The on-demand payment company DailyPay is working with PNC Bank and The Clearing House to offer real-time employee payments of earned income over the RTP network.
The solution gives users “power of choice and control” over their earned income and provides instant delivery, along with receipts to the sender confirming delivery, according to the news release. It added that a key function of real-time payments for DailyPay users is the ability to get wages instantly without disrupting an employer’s payroll process.
Founded in 2015, DailyPay says its mission is to help workers who deal with financial insecurity in part because their biweekly pay schedules don’t line up with the times when they need money.
“The convergence of mobile technology and digital commerce is leading to real-time payment innovation around the world, which is even more critical as businesses reopen in the wake of the pandemic,” the companies said in the news release. “As digital commerce has grown, there has been a renewed focus on financial inclusion and the challenges facing workers who live paycheck to paycheck.”
With real-time payments, workers can get funds instantly and thus better manage their cash flow and avoid having to resort to using payday loans. DailyPay says it is the first on-demand pay provider to use the RTP network, which is itself the first new payments infrastructure built in the United States in more than four decades.
“Paying workers on demand has taken on a new level of importance during the ongoing pandemic and helps to address cash flow concerns that many workers face on a weekly basis,” said Steve Ledford, senior vice president of product strategy and development at The Clearing House. “DailyPay’s utilization of the RTP network provides a seamless user experience and benefits the worker and the employer.”
Real-time payments of earned income are especially beneficial in the gig economy. A recent PYMNTS report found that 40 percent of gig workers would choose one company over another if it offered faster payments for work completed, and 84 percent said they would do more work if payments were processed more quickly.
Mastercard has begun rolling out a digitally connected credential that will allow consumers to pay with their choice of multiple payment options.
The new Mastercard One Credential can let consumers choose debit, installments, prepaid or credit, the company said in a Wednesday (Feb. 18) press release emailed to PYMNTS.
Users can set their payment preferences online or in an app, according to the release.
They can set preferences based on transaction type and time, per the release. For example, users can specify their checking account for expenses under $100, their credit card for expenses over $100, and installments for occasional larger purchases.
“Today’s consumers expect to be in the driver’s seat,” Mastercard Chief Product Officer Jorn Lambert said in the release. “That’s what sparked One Credential. It gives people an innovative way to pay that’s truly personalized to them.”
One Credential was designed with Gen Z consumers in mind, though the personalization the solution offers will appeal to other generations as well, Lambert said.
For issuing banks, One Credential offers a differentiated offering that provides payment experiences that are digital and personalized, as well as tools for planning financial futures, according to the release.
Mastercard also plans to roll out One Credential for small businesses, allowing them more choice of how to pay, the release said.
One Credential has key customers and partners committed to bring it to consumers, and the solution is already live in the United Arab Emirates (UAE) with digital banking platform Wio Bank, per the release.
“Being first to market with Mastercard’s One Credential allows us to deliver exactly what our digitally native customers demand — complete payment flexibility and control at their fingertips,” Wio Bank Chief Commercial Officer Prateek Vahie said in the release.
Consumers expect personalization, Mastercard SVP Offers, Loyalty Jill Moser told PYMNTS CEO Karen Webster in an interview posted Feb. 5
Mastercard’s own studies found that 70% of individuals expect a “more personalized experience tomorrow than they received yesterday.”
Convenience-focused consumers would like a single platform — an “everyday app” — that consolidates their daily digital activities, according to the PYMNTS Intelligence report, “Consumer Interest in an Everyday App.”
The report found that 59% of U.S. consumers and 37% of Australian consumers cite seamless payment integration as a top benefit of using an all-in-one app.