DailyPay utilizes technology from Wisconsin-based Fiserv to give employees instant access to their earned wages.(Photo: DailyPay) <\/p>\n
Work today, get paid today. <\/p>\n
That is how the relationship between some companies and their employees can function, thanks to new digital technology developed by Fiserv Inc. <\/p>\n
No more waiting until payday. <\/p>\n
The Brookfield-based financial technology company said Monday that its Digital Disbursementsolution gives companies the ability to paytheir employees in real time. <\/p>\n
DailyPay, a New York startup, is the first to announce it will use the Fiservdisbursement solution to integrate instant access features into companies existing payroll systems. <\/p>\n
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While some financial advisers point out dangers in workers havingimmediate access to their day's wages, Fiserv contends companies that partner with DailyPay for the new system recruit talent more quickly and reduce employee turnover by an average of 41%. <\/p>\n
We are deeply committed to reducing stress for Americans living paycheck to paycheck, DailyPay CEO Jason Lee said in a statement. <\/p>\n
It could mean being able to pay a bill on time and avoid a late fee, Lee said. For some, it could mean being able to put food on the table that day. <\/p>\n
DailyPay's services areavailable for companies in every state, aspokesman for the startup said, and all of its users have the instant payment tool now. <\/p>\n
DailyPayhas tailored the technology tosend payments to employee bank accounts inseconds. <\/p>\n
Along with immediate payment, the toolgives companiesthe ability to send payments throughemail addresses andphone numbers, as well as throughpaper checks. <\/p>\n
Fiserv manages the payment process and uses bank-grade security to ensure safe transactions, the company said in a statement. <\/p>\n
Companies can use their existing payroll systems to facilitate theinstant payments without much setuptime, and employees just providebasic information such as their bank account numbers. <\/p>\n
Employees get the wages sent to their \"available balance\" and can access the money by transferring it to their bank account. <\/p>\n
Whatever money they transfer from their available balance is taken off the next paycheck. Transferring money before the time of the paycheck involves a a $1.25 starting transfer fee. <\/p>\n
Erik Kroll, who owns the Milwaukee-based company Hilltop Financial Advisors, said he sees advantages of the real-time payment tool. However, Kroll, a certified financial planner, said that the daily access to paymentshould be used by employees sparingly. <\/p>\n
\"I wouldn't advise someone to rely on this, Kroll said. \"It could reinforce some bad habits of spending more than what's coming in.\" <\/p>\n
Such spending is sometimes inevitable, he said, especially for lower income earners. <\/p>\n
For others, however, theymay not know how to manage their cash flow and taking out money every day may only exacerbate those money management issues, he said. <\/p>\n
Having money foremergenciesand avoiding late fees involves tracking ones own expenses, cutting out unnecessary costsand puttingmoney into a savings fund, he said. <\/p>\n
The feeling of securitythat you can access your money any day can be counter-intuitive to appropriate savings goals, he said, and may further encouragepeople to spend their money as it comes in. <\/p>\n
Having daily access to earned wagesstill can benefitsavings efforts, Kroll said, if itis used as a bridge to a secure emergency fund. <\/p>\n
Especially for people who can putonly a few dollars into their savings each paycheck, the daily access to money can help pay off surprise expenses without forcing them to dip into their savings, he said. <\/p>\n
The key to using the DailyPay tool, Krollsaid, is using it only when you need it. <\/p>\n
Fiserv offers the digital disbursements solution directly to companies, charging them on a per-transaction basis. Startup costs vary by transaction volume. <\/p>\n
The technology allows companies such asDailyPay to offer paymentsolutions for companies to send money securely and efficiently, said Tom Allanson, president of electronic payments at Fiserv. <\/p>\n
Our payments capabilities are helping enable the digital economyand helping businesses connect with their customers by enabling safe, reliable and fast transactions, Allanson said. <\/p>\n
Read or Share this story: http:\/\/jsonl.in\/2tlox6E<\/a> <\/p>\n <\/p>\n Excerpt from: <\/p>\n Fiserv's new digital technology can pay workers in real time - Milwaukee Journal Sentinel<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" DailyPay utilizes technology from Wisconsin-based Fiserv to give employees instant access to their earned wages.(Photo: DailyPay) Work today, get paid today. That is how the relationship between some companies and their employees can function, thanks to new digital technology developed by Fiserv Inc. No more waiting until payday Continue reading