A DailyPay Benefit Can Reduce Employee Stress Over Paying Monthly Medical Bills, Says New Survey

NEW YORK, May 19, 2020 /PRNewswire/ -- A new co-branded survey from the Mercator Advisory Group and DailyPay, of salaried workers earning less than $75,000 per year, reveals that by introducing an on-demand pay benefit, employers can help their workers reduce the stress associated with paying monthly bills. Most notable and relevant today, nearly half (46%) of those polled are stressed by having to pay monthly medical bills.

DailyPay is an employer-offered benefit that allows employees to access money from earned income prior to payday. This financial flexibility and empowerment over their pay reduces stress and increases attendance and productivity at work. 

The survey indicates that the timing of cash flow is highly important to workers, and the option of flexible withdrawal of earned income before payday can be critical to their quality of life and quality of work. While those polled are generally confident in their ability to meet most of their basic needs on a regular basis, a single unexpected expense, such as a medical bill, can be financially devastating. COVID-19 has simply underscored this urgency. In fact, one-quarter (24%) of the respondents to the Mercator/DailyPay survey, said that a bill of less than $1,000 would require them to seek alternative funding.

By offering an on-demand pay benefit, employers can provide their workers with the financial flexibility they need, at no expense to the company. This helps employees to avoid more financially crippling options, including using credit cards, drawing down savings, incurring overdraft fees and resorting to payday loans, which can incur high-interest rates, fees and penalties.

Key findings of the survey include:

• Nearly half (48%) of respondents reported having a shortfall between payroll cycles, at least sometimes
• 46% surveyed have difficulty paying medical expenses, at least sometimes
• About seven in 10 reached out to external sources for funding that often incur high fees; among these individuals, many are frustrated with high-interest rates (51%) and fees (26%) associated with borrowing this money
• 23% incurred an unexpected expense they could not pay
• Three in 10 report some difficulty in keeping up with monthly expenses

The research shows that a flexible financial solution would act as a substitute for predatory alternative methods that come with high fees. When presented with the option for on-demand pay, respondents saw the value and an opportunity to stop the cycle of debt. In fact, more than half noted they would also use the DailyPay platform to save money and become more fiscally responsible. 

• 34% responded that they would either "definitely use" or "probably use" DailyPay if it were offered to them.
• When asked about services that could be replaced by DailyPay, respondents indicated the same potentially financially draining options that they reported using to obtain extra money to pay a bill, including check-cashing services, pay-day lenders and credit cards.
• 52% noted they would use the "Save" feature that is unique to the DailyPay platform. The "Save" feature allows Daily Pay customers to put away money for future bills and expenses before they even get paid.

The data collected in this survey reveals the critical need for on-demand access to earned pay that Americans face in typical economic times.

"The recent events that have effectively shut down the U.S. economy have only heightened that need for financial relief support, particularly among workers facing medical and other critical expenses," said Sarah Grotta, Director of the Debit and Alternative Products Advisory Service, Mercator Advisory Group. "Understanding the data that defines this market segment has never been more important."

Please join us on Thursday, May 28 (1 p.m.-2 p.m. ET) for a joint webinar with the Mercator Advisory Group and DailyPay to discuss the results of the research survey. You can register for this webinar here.

Methodology
Mercator Advisory Group, on behalf of DailyPay, conducted a survey of 1,000 salaried U.S. employed consumers earning less than $75,000. The 10-minute online panel survey was fielded Dec. 26, 2019 – January 4, 2020.

About DailyPay
DailyPay is a SaaS award-winning fintech solutions company supporting over two million employees at world-class companies, including Kroger, Adecco, Berkshire Hathaway and G4S, with an on-demand pay platform. DailyPay is headquartered in New York City with operations located in Minneapolis. For more information, visit dailypay.com/press.

About Mercator Advisory Group
Mercator Advisory Group is the leading independent research and advisory services firm exclusively focused on the payments and banking industries. We deliver pragmatic and timely research and advice designed to help our clients uncover the most lucrative opportunities to maximize revenue growth and contain costs. Our clients range from the world's largest payment issuers, acquirers, processors, merchants, and associations to leading technology providers and investors. Advisory services include Credit, Debit and Alternative Products, Prepaid, Merchant Services, Commercial and Enterprise Payments, Emerging Technologies, and Global Payments practices, which provide research documents and advice. Primary Data services include the North American PaymentsInsights series, which report and analyze data collected in our bi-annual consumer surveys, as well as the annual Small Business PaymentsInsights and Buyer PaymentsInsights series. Consultingservicesenable clients to gain actionable insights, implement more effective strategies, and accelerate go-to-market plans; offerings include tailored project-based expertise, customized primary research, go-to-market collateral, market sizing, competitive intelligence, and payments industry training. Mercator Advisory Group is also the publisher of the online payments and banking news and information portal PaymentsJournal.com. Visit www.mercatoradvisorygroup.com.

Contact: Sehrish Sayani 
Phone: (888) 991-3646
Email: press@trydailypay.com
Website: dailypay.com

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SOURCE DailyPay