Earned access wage provider DailyPay experienced a service snafu Friday related to the Veterans Day holiday that deprived some of its users of access to their funds.
Some workers who signed up for DailyPay access to their employer payments took to social media to express frustration with being unable to tap their funds. “It says my pay from my shift yesterday has been made available .. but my balance is still 0,” one person posted Friday on X, the site formerly known as Twitter.
DailyPay blamed a technical issue tied to the Veterans Day holiday falling on a Saturday, with the company treating Friday as a bank holiday, a spokesperson for the company said in an interview. That meant some of the payments to users had settlement dates marked as Monday, the spokesperson explained.
The delay in direct deposits affected a small percentage of the company’s employee users, the spokesperson said, declining to specify how many users or employer clients were impacted.
Some commercial banks observed Veterans Day on Friday and were closed for services, even though the official Veterans Day holiday was on Saturday. Still, the Federal Reserve was open for business on Friday.
“We apologize for falling short of your expectations today,” DailyPay said on its website Friday.
DailyPay and other on-demand pay services are designed to give employees at companies that provide its services access to their pay before the regularly scheduled payday. Such services have proliferated in recent years with some offering it for free through employers, others charging workers some fees and still others taking a cut of whatever spending happens on a prepaid card through which the employee has access to funds.
“Some DailyPay users experienced delays in receiving direct deposits on November 10th,” said the spokesperson, who said users had access to their funds by the end of the day. “Additional quality assurance procedures have been put in place to ensure this never happens again.”
The battery manufacturer Duracell, the staffing firm Staffmark Group and Wendy’s franchise operator Calhoun Management are among the employers touted on DailyPay’s website offering the on-demand pay services to their employees.
Among the additional actions DailyPay is taking to guard against a repeat of the incident is a review of the calendar for the next 10 years for such holiday situations, the spokesperson said.
DailyPay fronted some workers money to ensure they were made whole by the end of Friday, the spokesperson said, without providing a dollar amount for how much the company provided.
