DailyPay is partnering with Visa to release a prepaid debit card

US based Daily payment has partnered with Visa to release a prepaid debit card that allows users to access their wages the day before payday.

Aside from the earned wages feature, the card also offers cardholders free instant DailyPay transfers and gives them access to a network of toll-free ATMs. In addition, the card is linked to a mobile banking platform that allows customers to track their income and spending habits.

According to Paymentsdive.com, DailyPay pointed to rising inflation and rising interest rates as the top reasons workers in the United States need access to these financial tools. Using on-demand pay tools like early pay access, employees can claim their pay earlier than usual and avoid late fees. According to DailyPay, the new prepaid debit card is also compatible with Apple Pay, Google Pay and Samsung Pay.

Wage payments ahead of schedule are offset by demands for more regulation

Almost 100 consumer protection organizations, including the NAACP and the National Consumer Law Center, sent one open letter to the Consumer Financial Protection Bureau in October 2021. In the letter, the organizations asked the agency to review on-demand pay industry fees and regulate fee-based earned-wage-as-credit access products.

The organizations also called on the Governing Board to oversee fee-based wage access providers under the authority of the CFPB over payday loans, conduct research into the impact of wage access programs, and end or significantly revise the advisory appraisal program and the compliance assistance sandbox program.

What has DailyPay been up to lately?

In June 2021, DailyPay partnered with PNC Bank and The Clearing House to offer real-time payments over the RTP network. A feature of real-time payments for DailyPay users is the ability to receive earned wages without disrupting the employer’s normal weekly or biweekly payroll processing.

In January 2022, DailyPay launched a digital wallet with a DailyPay balance feature, allowing users to see their accounts being funded in real time. According to the company, most employees who have access to its services check their daily balance eight times a week.

By using this solution, employees are more likely to avoid payday loans or overdraft fees. Corresponding Research by DailyPay, Employees who are less stressed are more engaged and productive. The system aims to create a seamless personal finance experience by connecting to over 6,000 financial institutions supporting any bank account, debit card or prepaid card.