The need for workers to sometimes access their pay before payday to make ends meet has led to a new category of third-party payment providers. They offer what is called on-demand earned wage access as an employee benefit through employers. When an employee needs to tap into their pay early, often it’s for a specific event or reason and often that need is immediate.
It only makes sense then that DailyPay, one of the largest on-demand earned wage access providers, and The Clearing House have partnered through PNC Bank to make these transactions instant. Here’s more on this news from the press release announcing the partnership:
“We are constantly exploring ways to innovate our industry-leading technology platform and build upon the gold-standard service we provide our client partners and their employees,” said Ron Munkittrick, senior vice president, External Operations, DailyPay. “We are thrilled to join forces with PNC Bank and The Clearing House for this groundbreaking technology that will enhance the pay experience for millions of Americans.”
The RTP network provides DailyPay with a safe and seamless way to instantly transfer funds to its users’ bank accounts, giving the users the power of choice and control over their immediate earned income. Along with instant delivery and availability of funds to the recipient, the sender receives confirmation that the funds were successfully delivered. A key attribute of real-time payments for DailyPay users is the ability to receive earned wages instantly, as needed, without disrupting the employer’s normal weekly or biweekly payroll administration and process.
“PNC is committed to immediate payments and creating a platform for a digital real-time economy, and we are excited to collaborate with DailyPay and The Clearing House on this effort,” said Chris Ward, executive vice president and head of digital and innovation for PNC Treasury Management. “Today’s announcement is just one more example of PNC exploring and engaging innovative uses of RTP as the premier payment solution. The versatility of the RTP network enables new business models that provide opportunities for us to help clients differentiate the way they do business.”
Overview by Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group