Dive Brief:
- DailyPay, a New York-based earned wage access company, said last week that it has attracted more financial support, raising $75 million in new equity funds and receiving $100 million in debt financing.
- The equity infusion comes from new and existing investors, led by Carrick Capital Partners, and Citibank provided the additional credit, the company said in a Jan. 18 press release.
- DailyPay CEO Kevin Coop noted in the release that the financial support is “from both long-time institutional investors and new financial partners.”
Dive Insight:
Earned wage access providers give employees the option to tap their earned pay before their regular payday. Over the past decade, dozens of companies, also including Payactiv and EarnIn, have jumped into the business. As a result, competition to provide such services, also known as on-demand pay, has escalated.
EWA providers offer services through a variety of means, with some working through employers and others going direct to employees. DailyPay works with employers to provide its services. Some of DailyPay’s clients include Hilton, Target, Kroger and Dollar Tree, according to the release.
The EWA companies have also attracted attention from regulators, both on the state and federal levels, including the Consumer Financial Protection Bureau. Some states, including Nevada and Missouri, have also moved to oversee the industry.
With the new debt financing from Citi, DailyPay now has a revolving available credit of $660 million, including existing commitments from the bank Barclays and the investment firm TPG Angelo Gordon.
