Is DailyPay providing a loan to employees when they allow them to advance on their earnings?

DailyPay does not make any loans.

The employee can only access earned/unpaid wages through its platform.  It’s easiest to think about our platform like an ATM machine. In the context of a “normal” ATM machine, the employee has money sitting in a bank account that she can then access through an ATM machine on the corner of the street.  That is her money.  There’s nothing to pay back.  She pays a small fee to use the ATM to move those funds from the bank account into her hands.

In the same way, when the employee works, she earns money that is “hers”.  That money sits patiently at the your office until payday, at which point, you remit “her money” on a single day.  DailyPay’s platform (conveniently called the DailyPAYTM!) acts an ATM where the employee can access her earned wages.  In order to do this, she pays a small fee as she would to a physical ATM machine.  In our model - similar to the physical ATM machine - there is nothing for the employee to ever pay back. In fact, the Minneapolis Federal Reserve Bank named DailyPay as the premier alternative to payday lenders (March 2018), as did Business Insider (June 26, 2017).

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