DailyPay named Chairman Nelson Chai its chief executive officer this week after 10 months as a director of the earned wage access firm.
Chai is the former chief financial officer of Uber Technologies, where he worked for five years, and held the same title at Merrill Lynch and the New York Stock Exchange. He is also a former CEO of insurance company The Warranty Group.
“As DailyPay’s strategy has advanced to encompass employee financial wellness, Nelson is the right leader for this next stage of growth,” newly elected Board Chair CeCe Morken said Wednesday in a press release.
“His experience at the leading edge of fintech, and his knowledge of consumer markets, will foster further expansion and enhance our ability to deliver new offerings and even greater value for employers and employees alike,” Morken said.
Earned wage access services allow workers to tap their earned wages before regularly scheduled paydays. Dozens of EWA providers offer the services, making money by charging workers fees or receiving interchange fees from merchants if funds are added to a debit card.
States have also increasingly begun to regulate EWA providers, and the industry has recently been seeking federal oversight in response to the prospect of differing state laws.
Chai succeeds Stacy Greiner, who spent 18 months at the company’s helm after about two years as its operations chief. Greiner will continue to serve as an adviser. Greiner’s predecessor, Kevin Coop, ran DailyPay for two years before leaving to helm Definite Healthcare. Founder Jason Lee preceded Coop, until 2022.
A spokesperson for New York-based DailyPay declined to comment Thursday on the CEO change beyond the press release.
Chai is the second DailyPay executive appointed this week after Poulomi Damany was named chief product officer on Tuesday. Damany joined DailyPay from personal finance company Credit Karma, acquired by Intuit, most recently as senior vice president and general manager of Credit Karma's money business unit.
DailyPay is currently being sued by New York Attorney General Letitia James, who alleged that the company’s practices “constitute illegal and deceptive conduct and abusive lending practices” that violate New York usury laws. James filed a similar lawsuit against MoneyLion, one of DailyPay’s competitors.
Earlier this month, a federal judge remanded James’ complaint against DailyPay to a state court, rejecting the fintech’s claim that it belonged in federal court.
