Netspend and DailyPay Boost Financial Security Through Direct Access to Earned Wages

According to the Federal Reserve, 40 percent of Americans cannot afford an unplanned $400 expense. Expense volatility is an extremely real concern for consumers across incomes and occupations and causes financial instability that leads to a lack of savings, late fees and, in many cases, debt. Today, we’re excited to share the news that we have joined forces with DailyPay to help tackle financial insecurity for people around the country to take better control over their hard-earned wages.

A new opportunity for employees to access their earned wages

Netspend is addressing this problem by working with DailyPay, a pioneer in providing employees access to earned wages across a wide range of industries. Through this relationship, Netspend clients can enter into an agreement with DailyPay for its earned wage access tool, thereby offering such client’s employees the ability to access their  earned wages when they need it, 365 days year, 7 days a week, 24 hours a day – all for about the cost of an ATM fee.[1] The result? By registering with DailyPay, employees with an active Skylight ONE Account can reduce financial stress and gain peace of mind knowing how and when they are going to meet their daily financial obligations by gaining access to their earned wages. With features such as available earned wage balance alerts, DailyPay users have been proven to keep better track of their finances.

With direct access to earned wages, employees could avoid the possibility of late payment fees.

Income Volatility: Explained

Income volatility is a widespread challenge that impacts people across all incomes and geographies in the U.S. This volatility means a sudden loss, or delay, of incoming funds, and can cause a decrease in financial stability.

- More than one-third of U.S. households experienced a 25 percent or more change in income year-to-year between 2014 and 2015, according to an analysis by the Pew Charitable Trusts.

- Families whose incomes swung up or down by more than 25 percent in a year are more likely to report financial shortfalls such as missing a rent payment or utility bill or overdrawing on a checking account balance.

- Among almost 8,000 respondents in the Pew survey, 90 percent said they’d rather have a steady income than upward mobility.[2]

Business Benefits of Utilizing DailyPay

Sounds great for employees, but what’s in it for employers? Most remarkably, employers have seen immediate improvements to employee engagement, satisfaction, and retention when offering employees access to wages.

Based upon DailyPay data, companies across a variety of industries that have used DailyPay have seen a:

- 41 percent decrease in turnover

- 30 percent increase in employee productivity

- 9x as many job applications for open positions

Through the Netspend-DailyPay relationship, companies have the opportunity to streamline their payroll process. It also enables employees with a Skylight ONE account and a user agreement with DailyPay the ability to access their hard-earned money prior to a weekly or bi-weekly pay cycle.

Regardless of the amount on a paycheck, without sufficient savings and a dependable safety net, the sudden loss of a job can cause major financial problems for a family. As families across the country struggle to gain a more stable financial footing, they are looking for resources to help them plan, save and achieve their financial goals. Additionally, millennials, the future of the workforce, have come to expect direct access to the things they want and need.

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[1] DailyPay’s current earned wage fund transfer fees range from $1.99 to $2.99 per transfer, subject to change.

[2] Pewtrusts.org. (2018). Income Volatility and Financial Security. [online] Available at: https://www.pewtrusts.org/en/research-and-analysis/issue-briefs/2017/03/how-income-volatility-interacts-with-american-families-financial-security [Accessed 24 Oct. 2018].