The financial wellness advantage can be crucial, especially during times of high inflation, high gas prices and financial challenges
Almost eight in ten respondents say DailyPay helps them avoid expensive or predatory alternatives
NEW YORK, September 8, 2022 /PRNewswire/ — Amid continued inflation and the high cost of everyday items, millions of working Americans are taking advantage of the critical financial wellness benefits offered by their employers to help pay bills. A new report by the Mercator Advisory Group (commissioned by DailyPay) finds that nearly eight in ten (77%) survey respondents said DailyPay’s On-Demand Pay benefit helps them save money by using other more expensive ones Avoid alternative ways to process expenses.
With some studies showing as much as 77% of Americans With any form of debt, inflation can potentially be financially crushing. For many of the approx 58% of AmericansPaycheck-to-paycheck help from their employers is needed to navigate these seemingly insurmountable financial challenges, according to a recent LendingClub report. On-demand salary 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 Over 90% of respondents in the Mercator study reported an improvement or elimination of reliance on outdated financial alternatives such as overdraft fees, payday loans, and late fees.
“On-demand pay solutions have highlighted the benefits that these flexible pay options offer workers to avoid expensive forms of financing and help make ends meet,” he said Sarah grotto, Director of Debit Advisory Service, Mercator Advisory Group. “With this study, we can now quantify the savings workers realize by reducing or eliminating the use of payday loans, overdraft fees and biller late fees.”
The ability to access earned salary can mean the difference between a timely payment or a hefty fee. More than half (53%) of respondents in the Mercator study said using on-demand payments helped them avoid biller late fees.
The price of Groceries up 12.2% last year. Not surprisingly, 78% of Mercator survey respondents say grocery bills were the area where they most often used on-demand pay support, followed by utilities (64%) and marine and auto insurance (54%).
“This study confirms that on-demand payment can be an effective solution to the overdraft and robbery debt crisis,” he said Matthew Kopko, Vice President, Public Policy, DailyPay. “By having access to pay when they need it, workers report a significantly improved ability to take control of their financial future,
More information on Mercator’s report, including the survey methodology, can be found here.
Powered by its industry-leading technology platform, DailyPay is committed to building a new financial system for everyone. DailyPay offers the industry-leading on-demand pay solution with modern, insights-based pay strategies that help America’s top employers activate their workforce and build stronger relationships with their employees so they feel more engaged, work harder and stay longer . Through its vast data network, proprietary funding model and connections to over 6,000 endpoints in the banking system, DailyPay ensures employers’ money is always in the right place at the right time. DailyPay is headquartered in NYCwith operations in Minneapolis. For more information visit www.dailypay.com/press.