The financial wellness advantage can be critical, especially in times of high inflation, high gas prices and financial hardship.
Nearly eight in 10 respondents say DailyPay helps them avoid expensive or predatory alternatives
NEW YORK, September 8, 2022 /PRNewswire/ — Amid continued inflation and the high cost of everyday items, millions of American workers are using essential financial benefits offered by their employers to pay their bills. A new report from Mercator Advisory Group (commissioned by DailyPay) reveals that nearly eight in 10 survey respondents (77%) said DailyPay’s on-demand payment benefit helps them save money by avoiding other more expensive alternatives to manage expenses.
Some studies showing up to 77% of Americans carrying some form of debt, inflation can be financially crippling. For many of the approx. 58% of Americans, living paycheck to paycheck, according to a recent report by LendingClub, help from their employers is needed to survive these seemingly insurmountable financial challenges. Pay-as-you-go benefits can help employees better manage their cash flow and avoid a cycle of debt. More than 90% of respondents to the Mercator study reported an improvement or elimination of the use of traditional financial alternatives such as overdraft fees, payday loans and late fees.
“On-demand compensation solutions have highlighted the benefits these flexible compensation options offer workers to avoid costly forms of financing and help make ends meet,” said Sarah Cave, Director of Debit Advisory Services, Mercator Advisory Group. “With this study, we can now quantify the level of savings that workers achieve by decreasing or completely avoiding the use of payday loans, overdraft fees and biller late fees.”
The ability to access earned compensation can be the difference between making a payment on time or incurring high fees. More than half (53%) of respondents to the Mercator study indicated that using pay-as-you-go helped them avoid late fees to billers.
The price of groceries increased by 12.2% in the last year. Unsurprisingly, 78% of respondents in the Mercator survey say grocery bills are the area in which they have used pay-on-demand support the most, followed by utilities (64%), and transportation and automobile insurance (54%).
“This study confirms that pay-as-you-go can be an effective solution to the overdraft and predatory debt crisis,” said Matthew Koko, Vice President, Public Policy, DailyPay. “With access to on-demand compensation, workers report a significantly increased ability to take control of their financial future,
For more information on Mercator’s report, including survey methodology, click here.
About Daily Pay
DailyPay, powered by its cutting-edge technology platform, is on a mission to create a new financial system for everyone. DailyPay offers the industry-leading on-demand payment solution with modern, insight-driven compensation strategies that help leading U.S. employers activate their workforces and build stronger relationships with their employees so that they feel more engaged, work harder and stay longer. With its extensive data network, proprietary funding model and connections to over 6,000 banking system endpoints, DailyPay ensures money is always in the right place at the right time for employers. DailyPay is headquartered in New York Citywith operations based in Minneapolis. For more information, visit www.dailypay.com/press.