Hello guys, welcome to the Fintech Espresso Break, I’m your host Isabelle Castro. This week I shared my espresso break with Stacy Greiner, COO at DailyPay.
DailyPay is a forerunner within the US and wage entry area. Working with employers everywhere in the nation, they empower them to supply their workers entry to wages they’ve already earned on demand, shifting away from the standard first and Fifteenth-of-the-month wage.
Whereas DailyPay is clear and affords workers completely different choices for entry, a few of that are free. That’s not the case throughout the business. The pretty nascent area has been the topic of criticism about doubtful price constructions, at occasions providing little profit over costly mortgage choices. Regulators have solely simply began tackling the area, with susceptible workers at occasions being caught within the crossfire.
I spoke to Stacy about DailyPay’s strategy and the potential of earned wage entry ought to predatory actors be eradicated.
Isabelle Castro
Hello Stacy, good to satisfy you.
Stacy Greiner 1:04
Hello, Isabelle. Thanks for the time. Nice to satisfy you as properly.
Isabelle Castro 1:06
Thanks for approaching. I’m actually trying ahead to speaking to you. To start out off with I wish to know what will get you up within the morning.
Stacy Greiner 1:14
That could be a nice query. My so technically what will get us up within the morning, my husband and I’ve this little rescue named Tucker, who’s as his title would possibly say, like up and Adam each single day at 6am. So he will get us fired up and out rapidly earlier than he has an accident in the home. So he’s like our alarm.
Isabelle Castro 1:36
That’s fairly good. I like that that’s an excellent energetic strategy to begin.
Stacy Greiner 1:39
is sure, it’s. No, no relaxation for the weary within the morning. But in addition simple to stand up once you love what you do. So we’re very lucky to have that as properly.
Isabelle Castro 1:47
Yeah, however inform me about your profession journey to every day pay and what introduced you to the corporate?
Stacy Greiner 1:54
Yeah, that’s an excellent query. So I studied aerospace engineering is type of how I began my profession. And rising up in Omaha, Nebraska, it was my, actually my dream to be a pilot. I used to be working an hourly job in highschool at Kmart. And you realize, every time I bought my paycheck, I might rush to the native airstrip. And for $25, I may hire a aircraft and for one more $10, I may hire an teacher. And, you realize, I paid my approach by getting my pilot’s licence. And I used to be like, on my mission. Properly, it turned out that with out 2020 imaginative and prescient, or type of excellent imaginative and prescient that apparently, your profession choices are fairly restricted as a pilot. So I assumed like, alright, properly, I’ll simply go to highschool and discover ways to construct planes. So I studied aerospace engineering. And I feel what I like about engineering is it truly is about taking one thing that’s actually advanced and coming again with a quite simple resolution. And so I’ve spent my profession and tech type of doing simply that. And, and right here at every day pay, like that’s what we’re doing proper. Getting paid shouldn’t be rocket science. It ought to actually be I work right this moment, I receives a commission right this moment. And so fairly enthusiastic about that mission. And that’s actually what introduced me right here.
Isabelle Castro 3:09
Good. I prefer it. I prefer it when folks have type of like, alternative routes into the fintech area. It’s
Stacy Greiner 3:15
actually yeah, there’s a number of Journeys you’ll be able to absorb life.
Isabelle Castro 3:19
Yeah, completely. And it offers you completely different views on the tech area, I assume it helps with innovation as properly.
Stacy Greiner 3:27
That’s very true. Is there a real I preferred that you simply mentioned that truly, as a result of I feel that’s one of many largest advantages once you cross industries is that a number of the issues are related, proper. And you may deliver options from one business into one other and type of extra simply see what that easy reply may be.
Isabelle Castro 3:43
Completely. Keep it up. Did I did I interrupt you?
Stacy Greiner 3:47
No, I simply was considering I actually preferred that that type of draw that you simply made between industries? As a result of I feel that that’s precisely proper about what actually sparks innovation.
Isabelle Castro 3:56
Thanks. So every day pay works in and wage entry area. It is a pretty new area. Payroll has historically been periodically between the primary and Fifteenth some circumstances weekly, some circumstances month-to-month in Europe has usually month-to-month. Why the shift?
Stacy Greiner 4:16
Yeah. And I really feel like a part of you realize, the reply of why the shift is a little bit of you realize, why not? However I feel much more importantly, it’s, you realize, life doesn’t occur in two week or month-to-month increments, proper. Life occurs each day. And we actually noticed the acceleration of employers understanding this want by the pandemic, the place we had those that are using frontline staff, like grocery shops, well being care staff, are they actually realise that their workers want this they want the power to get to work, they want the power to maintain their households secure, and simply offering them entry to the cash that they’ve already earned, quite than making them wait. Have you learnt two weeks into that pay cycle got here out with one thing that they felt that they might do that actually would make an affect of their workers lives.
Isabelle Castro 5:07
Okay, cool. And my subsequent query is why particularly now? Is it that we haven’t had the expertise prior to now or the regulation? Or?
Stacy Greiner 5:16
Yeah, I feel it’s extra expertise. I feel that that’s one of many issues that’s stunning about expertise, proper is it may be utilized to issues that work a sure approach. And for those who simply ask the query, properly, why does it work that approach, it doesn’t must work. That approach, you need to use expertise to vary the way in which that that cash strikes.
Isabelle Castro 5:36
Good, good. So just lately, I imply, price of residing, has been going ridiculously excessive, persons are getting loans much more. Simply all the pieces typically is dearer, has the and wage entry area modified inside that panorama?
Stacy Greiner 5:56
I feel it’s turn out to be extra vital in that panorama. You realize, we noticed latest examine that from 2021 to 2022. Now the those who have bother affording even a $400 type of emergency fee has risen from 32% to 37%. Proper, so there’s a rise in folks’s want for flexibility of after they can entry the wages that they’ve earned. And you realize, greater than half of individuals right here within the US, I feel it’s truly 58% of individuals within the US are really residing paycheck to paycheck.
Isabelle Castro 6:33
Okay. And so in the event that they get entry daily, they not have to try this they’ll simply use it each time they need.
Stacy Greiner 6:40
Proper. And that’s, I feel that’s what we’re so enthusiastic about is as a result of it actually offers that energy again to the worker, proper? As an worker, you present up, you deliver your 100% to work daily. And for those who want one thing in between pay cycles, proper, the one choice that folks had was to go to a payday mortgage, take out extra bank card debt, or, you realize, pay overdraft charges on their financial institution accounts, proper. And we’re actually on a mission to place all of these type of out of existence, folks mustn’t have to show to predatory lending options, after they’ve earned cash, and it simply hasn’t been paid for them but.
Isabelle Castro 7:16
No, I agree. What’s what for you is the first benefit of facilitating this personally, what’s your favorite benefit of it?
Stacy Greiner 7:28
Yeah, I feel personally, it truly is bringing that type of management again to an worker, proper? There’s, you realize, a lot of your private success in life or your private means to help your self and your family members, proper is your, your effort to return to work every day, and to then put that accountable for, you realize, you realize, you’re accountable for the trouble that you simply put in direction of your work to peak give those who management of how they profit from their work as properly when they should or wish to profit from that work. I feel that’s most likely type of crucial profit that we see that we’re bringing to workers. And, and, you realize, it’s actually gratifying as a result of we hear that from our shoppers. Numerous our shoppers on their, you realize, quarterly earnings stories, the CEOs will cite, that every day pay has made a distinction of their means to draw workers retain workers, and that they imagine within the profit that it’s bringing to their workers.
Isabelle Castro 8:31
Okay. And do you discover like, out of your analysis and type of like, conversations along with your shoppers, do you discover that workers themselves are extra productive? Is it serving to on that scale as properly?
Stacy Greiner 8:45
It does, tremendously. And, you realize, talking with one among our largest shoppers just lately, he mentioned that that is rolling out earned wage entry was the most effective factor that he’s ever performed in his profession, for his or her 10s of 1000s of workers throughout the nation. And we additionally know by research that we do with our shoppers that having the ability to see your earnings every day, as a result of logging into every day pay is just not solely about I must act, you realize, I’m going to take entry to my earned wages. Really, folks log in three and a half occasions extra ceaselessly, as a result of they only wish to see how a lot have I earned already this week. And once you see how a lot you’ve earned already this week, I’m going again to the management, proper, that permits you to say, I truly wish to earn extra, I’m going to select up extra shifts, we see an amazing improve within the variety of shifts, proper that Every day Pay workers decide up. Actually, I feel it’s 26-27% Extra shifts {that a} DailyPay worker will decide up in comparison with non every day pay workers inside that inside that given employer, so we do see an amazing affect to the productiveness that employers are seeing. And we additionally see, you realize, an affect in how folks really feel about their jobs. So we’ve bought some nice stats on simply how how How far more workers really feel that their employers care about them? As a result of they’ve provided them every day pay?
Isabelle Castro 10:05
Okay, that’s actually cool. Yeah, I didn’t truly consider that type of angle that it might be like a motivational factor as properly.
Stacy Greiner 10:13
Yeah, I feel that and that’s type of the flip facet, proper of that energy that we’re giving to the worker. It’s not nearly entry to your cash, it’s actually about placing you accountable for how a lot you earn once you earn it, and type of having the ability to earn on the tempo, proper that your life is, is coming.
Isabelle Castro 10:30
Yeah, and I assume they’re type of participating extra of their funds that approach. It’s not similar to, it’s passive factor they really can see and regulate in keeping with what they want.
Stacy Greiner 10:38
Precisely, precisely. As a result of they actually don’t have visibility, you assume between paychecks, proper? You, you come to work when, when your shifts proper have been assigned to you. And then you definitely type of discover out two weeks later, how a lot you’ve earned for that time period. And so this offers folks just like the second that they log, you realize, clock out on the finish of the day, they’ll see how a lot now they’ve earned for that day. And that week thus far,
Isabelle Castro 11:01
that’s actually cool. So this can be a comparatively nascent sector. So regulators are nonetheless type of understanding regulate it. I noticed just lately that there was a proposal to deal with and Wade entry as a form of mortgage. Do you assume that’s truthful? Is it a mortgage? I feel
Stacy Greiner 11:19
It’s positively not a mortgage. It’s positively not a mortgage. And we embrace and have been working with the regulators. As a result of we do need regulation within the area. However earned approach taxes is just not alone. As a result of given its title, it’s really wages that you’ve earned. So it’s not speculative. It’s not based mostly on credit score historical past, there’s no, you realize that the worker that takes the DailyPay profit is just not going underneath some type of contract or obligation, proper to repay. It really is simply paying folks what they’ve already earned. And since we’re built-in straight into worker employers, payroll, and Time and Attendance programs, we all know precisely how a lot that worker has earned. So there’s no algorithms or type of underwriting taking place within the earned wage entry base. Okay, cool.
Isabelle Castro 12:09
Yeah. As a result of DailyPay focuses b2b Proper? There are b2c choices, although, aren’t there?
Stacy Greiner 12:18
That’s right. That’s right. So we’re a b2b resolution. We companion with a number of the largest employers within the nation, goal Kroger, Hilton Greenback Tree. And we, you realize, work straight with their folks groups, their HR groups and bringing that profit to their workers.
Isabelle Castro 12:36
Okay. Okay. So it’s, it’s probably not type of affecting, whereas it’s affecting the shoppers, however it’s not like they should type of be paying the charges and stuff. It’s extra the employers doing this to learn their workers.
Stacy Greiner 12:53
Attorneys are deciding on Dailypay to learn their workers. And we have now a really clear price construction. So we have now 3 ways to have international workers to have entry to their earned wages, two of that are free. So one is they’ll have a free subsequent day switch into any checking account of their alternative. The second choice is they’ll take a free switch on a every day pays Friday card, which is a normal function reloadable card, I feel if they need a free on the spot switch, they’ll take it on to every day pays Friday card. And if they need an on the spot switch, then to a 3rd social gathering account, there’s only a $3.49 cent flat price. So it’s all the time a flat price. It’s very clear. You realize, it’s one of many issues that’s actually vital to us, as a result of with the intention to give someone management over how a lot they’re working, how a lot they’re incomes, we additionally wish to ensure that it’s utterly clear, to essentially empower that management that they want.
Isabelle Castro 13:50
Now, that’s tremendous vital. I’ve heard that different firms, another firms usually are not doing that type of transparency. They usually do have very completely different price constructions, perhaps define for our listeners, however type of different issues on the market which have type of come out of the area.
Stacy Greiner 14:14
Yeah. I imply, I don’t know that it’s my place to touch upon different folks’s enterprise fashions. However as you type of insinuate, there are fashions which are extra variable based mostly on what folks have drawn, proper, or perhaps much less clear. And in order that’s simply one thing that on a regular basis actually motivates us is to ensure that that price construction is a very flat price, no matter how a lot how a lot of your earned wages you’re accessing, and that there’s two free choices, and that that these three choices are utterly clear to our finish customers.
Isabelle Castro 14:48
I’ve seen that a number of the different suppliers present most likely a tipping construction, which for me, was fairly novel I imply, in your On the tipping type of economic system isn’t the identical as in America. However it nonetheless did leap out to me like what it says there’s a bizarre strategy to go to monetary providers religion. Why are ideas getting used quite than a typical price? Yeah, yeah.
Stacy Greiner 15:21
Properly, I don’t know. We, we don’t observe a tipping mannequin. So assume that it’s a query mark. And so it’s not a mannequin that we use. And I assume one of many causes additionally why we simply really feel so passionately about having that flat, clear price and to free choices.
Isabelle Castro 15:44
You talked about payday loans earlier than. I get the sensation that every day pay doesn’t go into this type of bracket. However just lately, the California DEA FBI performed a report that discovered that sure price constructions quantity to related charges which are only a bit underneath payday loans. I do know most likely for every day paid, that isn’t the case. As a result of one you already work with employers as a substitute of the staff. But in addition it seems like your price constructions. actually cheap. However extra a normal outlook. Is it actually offering this profit that folks don’t should go to payday loans? Generally?
Stacy Greiner 16:34
I like that. You ask that as a result of we are actually on a mission to place payday lenders out of enterprise. So that you simply received’t should ask this query sooner or later. However we’ve performed third social gathering analysis, proper the place 81% of DailyPay customers have mentioned that they’ve now utterly stopped utilizing a payday mortgage, one other 15% have decreased their use of payday loans. So collectively, that’s 95% of the inhabitants. And 9 out of 10 of these folks have credited every day pay for his or her means to cease or cut back their utilization of every day payday loans.
Isabelle Castro 17:10
Okay, that’s wonderful. You need to really feel actually nice about your self.
Stacy Greiner 17:14
You’re actually nice about that.
Isabelle Castro 17:17
I’d learn that and be like, Wow, that’s my complete 12 months. Me. Precisely. Precisely. It feels nice. Yeah, I guess. In a number of the type of analysis that I’ve performed round and vast entry. Some folks there’s a number of unhealthy press. They’re involved that issues like wage entry can get susceptible prospects right into a cycle of debt. I imply, is that this a sound concern? In your opinion, trying on the area,
Stacy Greiner 17:56
I feel that type of time period cycle of debt, simply by the time period debt, proper is referring to loans and type of predatory lending kinds of options that, as I discussed, we’re working to place out of enterprise. So for us earned wage entry actually is about giving that true visibility and transparency to what you’ve truly earned. To be able to each plan your life based mostly on what your earnings are. But in addition be capable of pay your payments and on your life. When it is advisable on the tempo that people who these seem in your life. So we actually see this as far more about giving management to workers, and in no way about, you realize, them ending up owing cash that they’re not in a position to repay, since that’s simply not how earned wage entry works.
Isabelle Castro 18:47
So actually, it may be the antidote
Stacy Greiner 18:51
to the cycle of debt is the antidote. Sure. Is the antidote, similar to properly,
Isabelle Castro 18:56
I like that. I like that. Properly, hopefully, regulators will see this within the coming months, years that they go to control it. It seems like with folks like Dailypay, it’s on an excellent trajectory.
Stacy Greiner 19:11
Sure, we imagine that that the distinction has been seen the distinction between earned wage entry and people different mortgage kinds of merchandise?
Isabelle Castro 19:20
Yeah, no, positively. So grilling is over, I get to ask you a few questions on your self. What’s a chunk of recommendation that you’ve been given that you’d give to another person?
Stacy Greiner 19:35
That’s an ideal query. I’ve been very lucky to get a number of good items of recommendation, however I feel most likely the one which has caught with me most is as you consider progressing in your profession, proper? Actually displaying up and giving 150% every day to your present day job and simply type of elevating your hand for what different issues that you simply really feel like you possibly can clear up for the crew.
Isabelle Castro 19:59
Good. I like that. Am I 100% prescribe to that myself as properly. So we’re on the identical vibe, your curveball query, which I picked simply earlier than this interview is a very nice one. For those who may decide on one fictional character to type of come to life and be a buddy, who would that be?
Stacy Greiner 20:25
Oh gosh, fictional character to return to life you my buddy. I’m going to should go together with Harry Potter.
Isabelle Castro 20:30
Good. Okay. What are you place to him? Particularly? Harry Potter himself.
Stacy Greiner 20:34
Yeah, okay. Yeah. Love his his tenacity of his type of upbringing story, after which simply type of the miraculousness that he will get to see the world I feel is basically cool.
Isabelle Castro 20:47
Yeah, I’m an ideal fan of Harry Potter. So I utterly agree with you. That will have been in my prime three. If I used to be answering that query for positive.
Stacy Greiner 20:59
Appears like we needs to be grabbing espresso as a result of we wish to discuss we should always
Isabelle Castro 21:02
positively I’m in New York in August so I hit you up. How can folks come up with you? Or DailyPay? Certain.
Stacy Greiner 21:11
I’m on LinkedIn because the Chief Working Officer at every day pay. You may attain me at Stacey dot Greiner at every day pay.com.
Isabelle Castro 21:20
Okay, cool. Thanks a lot on your time. I’ve actually loved our dialog.
Stacy Greiner 21:24
Isabelle. I actually loved as properly thanks a lot on your time right this moment.
Isabelle Castro 21:28
Thank you’ve an excellent remainder of your day.
Stacy Greiner
Likewise.
Isabelle Castro
As all the time, you’ll be able to attain out and chat with me or my private LinkedIn or Twitter @IZYCastrowrites. However for entry to nice every day content material, take a look at Fintech Nexus on LinkedIn, Twitter, Fb or Instagram. It’s also possible to join our every day e-newsletter bringing new straight to your inbox. For extra FinTech podcast enjoyable, take a look at the web site, the place you will discover extra fascinating conversations hosted by Peter Renton and Todd Anderson.
That’s it from me. Till subsequent time, get pleasure from your downtime.