Off-cycle payroll payments, which happen when companies make payments outside of their usual payroll schedule, can be costly and time consuming, the release stated. Typically, the process requires creating and sending paper checks, which can run up to $50 to overnight to the recipient.
Now, as companies try to save money in order to survive the pandemic, that $50 per check can add up. When employees are forced to use predatory check cashing establishments, the high surcharges don’t help, the release noted.
With DailyPay’s CYCLE, companies can access disbursements of electronic off-cycle payroll payments, so as not to have to deal with paper checks, according to the release. The CYCLE feature, like DailyPay’s payment program, is funded by DailyPay, leaving no need for companies to draw from their reserves.
Rebecca Jarbo, payroll manager for Wireless Vision, who has used the CYCLE service, said in the release that before CYCLE, she was cutting “a handful” of manual checks and having to pay to send them out of cycle. But with CYCLE, her company has seen a boost in being able to “take care of people efficiently.”
Patrick Luther, who is the industry principal of financial services at Ceridian, said in an interview with PYMNTS that on-demand pay is having something of a moment and could be suited for the current pandemic atmosphere. More on-demand payments could help people break out of living paycheck to paycheck and save or spend more.
“For many workers, accessing your pay a few days earlier can make all the difference,” he said. “It’s well known that individuals must pay bank and auto loans, utility and credit card payments in a timely manner or risk facing penalties. Access to your money as you earn it may mean avoiding a late payment fee, a bounced check, an interest hike or relying on … high-interest cash advances.”