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Fintech DailyPay secures $300M credit facility to build new financial system

DailyPay
Image credits: DailyPay

DailyPay, a New York-based financial services company, announced that it has secured a $300M revolving credit facility from Barclays. 

According to the US company, the credit facility will provide access to significant capital to service its ever-growing roster of partners, which includes America’s leading employers.

“A fortress balance sheet is essential to be a leading company in on-demand pay,” says Jason Lee, CEO & Co-founder, DailyPay. “This credit facility will allow us to work with more of the largest employers in the country to offer on-demand pay to their employees.”

Latham & Watkins LLP advised DailyPay, and Mayer Brown LLP advised Barclays on the financing transaction.

“This deal signals a first for our industry, and pioneers a new asset class,” said Ghani Iberraken, Vice President of Capital Markets, DailyPay. “We’re proud to strengthen our mission to create a financial system that works for everyone.”

Building a new financial system

The current financial system is fraught with inefficiencies and friction, causing financial pain for everyone, including far too many who work full-time. Employees earn wages each day but have had to wait for a scheduled payday to access their own money.

Founded by Jason Lee and Robert Law in 2016, DailyPay is on a mission to build a new financial system. 

Through its huge data network, proprietary funding model, and connections into over 6,000 endpoints in the banking system, the US company ensures that money is always in the right place at the right time for employers, merchants, and financial institutions. 

The company has partnered with America’s best-in-class employers, including Dollar Tree, Berkshire Hathaway, and Adecco.

Previous developments

A few days back, Island Hospitality Management, the third-party management company, announced its partnership with DailyPay to provide on-demand pay benefits to its employees.

Last month, DailyPay appointed Scott Sampsonas Chief Revenue Officer, reporting to Founder and CEO Jason Lee. Sampson was previously the Senior Vice President of Worldwide Sales at 8×8, a top cloud services company, where he more than doubled revenue.

He also served as Chief Revenue Officer at NewVoiceMedia (now Vonage) and spent more than a decade at IBM Corporation, where he served as Vice President of Worldwide Analytics Platform and Industry Cloud Solutions Sales.

In January 2022, DailyPay announced its digital wallet designed for everyday working Americans. As per the company, the DailyPay wallet allows you to save your money as you earn it and supports an array of capabilities, including bill pay, investing, buying goods and services, and more.

Last year, in May, the company secured $500M of capital, including a $175M Series D equity raise. 80% of Fortune 200 companies that offer on-demand pay partner with DailyPay.

In the past couple of years, DailyPay has reached several key milestones. The company grew revenue by 141% in 2020 and released a suite of new products and services that benefit employers, including tools to enable off-cycle payments and remit employee reward payments. 

Additionally, DailyPay launched ExtendPX, its proprietary white-label solution for Payroll/HCM companies. 

DailyPay saw significant increases in usage in 2020, remitting payments every minute of the entire year to over 6,000 different financial institutions in the United States.

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