The Financial Wellness Benefit Can Be Critical, Particularly During Times of High Inflation, High Gas Prices and Financial Challenges
Nearly Eight in 10 Surveyed Indicate DailyPay Helps Them Avoid Costly or Predatory Alternatives
Amid continued inflation and the high cost of everyday items, millions of working Americans are utilizing critical financial wellness benefits offered by their employers to help pay bills. A new report from the Mercator Advisory Group (commissioned by DailyPay) finds that nearly eight in 10 (77%) survey respondents said that DailyPay’s on-demand pay benefit helps them save money by avoiding other more expensive alternatives to handle expenses.
With some studies showing as much as 77% of Americans carrying some form of debt, inflation can be potentially financially crushing. For many of the approximately 58% of Americans, living paycheck to paycheck, according to a recent LendingClub report, help from their employers is necessary to survive these seemingly insurmountable financial challenges. On-demand pay benefits can help employees better manage their cash flow and stay out of a cycle of debt. Over 90% of respondents in the Mercator study reported improvement or elimination of reliance on legacy financial alternatives like overdraft fees, payday loans and late fees.
“On-demand pay solutions have highlighted the benefits these flexible pay options offer to workers to avoid expensive forms of financing and help make ends meet,” said Sarah Grotta, Director of Debit Advisory Service, Mercator Advisory Group. “With this study, we can now quantify the level of savings workers achieve by decreasing or avoiding altogether the use of payday loans, overdraft fees and late fees from billers.”
The ability to access earned pay can make the difference between making a payment on time or incurring a high fee. Over half (53%) of the respondents in the Mercator study noted that using on-demand pay helped them avoid late fees to billers. The price of groceries rose 12.2% in the last year. Not surprisingly, 78% of respondents to the Mercator survey say grocery bills were the top area in which they used on-demand pay support the most, followed by utilities (64%), and transportation and car insurance (54%).
“This research confirms on-demand pay can be an effective solution to the overdraft and predatory debt crisis,” said Matthew Kopko, Vice President, Public Policy, DailyPay. “With access to on-demand pay, workers report a substantially increased ability to take control of their financial future.”
For more information on Mercator’s report, including Survey Methodology, see HERE.
DailyPay, powered by its industry-leading technology platform, is on a mission to build a new financial system for everyone. DailyPay delivers the industry’s leading on-demand pay solution with modern, insight-driven pay strategies that help America’s leading employers to activate their workforce and build stronger relationships with their employees so they feel more engaged, work harder, and stay longer. Through its massive data network, proprietary funding model and connections into over 6,000 endpoints in the banking system, DailyPay works to ensure that money is always in the right place at the right time for employers. DailyPay is headquartered in New York City, with operations based in Minneapolis. For more information, visit www.dailypay.com/press.