DailyPay, a company that provides on-demand payment solutions to employees and employers, has raised capital of $ 500 million.
This is in part thanks to the adherence of home care providers to the method.
The New York-based firm recently announced that it has raised $ 175 million in a Series D funding round, led by Carrick Capital Partners with other existing investors. DailyPay further raised $ 325 million in credit capital from various sources.
Of the more than 400 customers who use DailyPay, almost 25% are healthcare providers. Rockaway Home Care and BrightSpring Health Services are two examples of home care agencies that use its services.
Generally speaking, the platform allows suppliers to pay workers on a daily basis, or whenever they want to receive the money they have earned.
“Home health care is a great field and a great industry for us,” Jeanniey Walden, head of innovation and marketing at DailyPay, told Home Health Care News. “In fact, it was one of the first industries to put DailyPay and pay-on-demand, in general, on the map. I think they self-identified the need to use a benefit or a service offering like DailyPay to help hire competitively from the early days, as there has always been a labor shortage.
The massive fundraising cycle gives DailyPay the opportunity to tackle more healthcare providers and achieve its goal of transforming the financial system for workers’ compensation.
Especially for home carers, who are often subject to low wages, the daily wage can be very beneficial. This allows them to access their money at all times, so bills that don’t match paychecks aren’t a problem.
The payday structure – where an employer distributed paychecks every two weeks or every month – began after World War II in an effort to help the economy. It has been stuck ever since, but hasn’t always made sense to employees.
“It just became an efficiency game for a lot of organizations,” Walden said. “But unfortunately, as the world has changed, various bills don’t necessarily match your salary. In many cases, the timing of your spending doesn’t match the timing of your paycheck. DailyPay simply responds to an employee need: to have money in the right place at the right time. “
Home care providers like Rockaway Home Care have exploited this payment method when recruiting.
“Daily pay was a game-changer for us,” Sean Hirsch, executive director of Rockaway, told HHCN last year. “We saw this as a way to provide another non-cash benefit to our workforce. The happiest [employees] are, which also transfers to the patient. “
Rockaway operates six home care centers in the greater New York City area. Its payment structure has differentiated it from its competitors in an area where there are not always many differences between agencies.
Another reason DailyPay is useful for workers is that it allows them to access their salary balance at any time.
“If you have an hourly job, before the payroll was available, nobody really knew how much money they were making,” Walden said. “You somehow knew that, but there was [various factors] in the way you got paid. You usually knew what your check would be, but now you can look at your payroll balance and say, “Oh, okay. I have already earned this money and there are three days left until payday. And you can make some decisions from that like if you need to take another shift or if you can take a day off. “
Employers can also offer on-site bonuses to reward their employees for their accomplishments on the same day.
One way to use this, for example, would be to reward an employee risk salary on the same day they treated a positive COVID-19 patient.
Suppliers can also offer bonuses the week before the holidays so their employees can access them immediately and purchase gifts or pay for a Thanksgiving meal.
“With bonuses or cash rewards, if you [need them] Tuesday I can give it to you then, ”Walden said. “If I give you another $ 50 in two weeks, you will get it.” And maybe you will remember that you are a valued employee. But it’s more appreciated [in the moment]. “