DailyPay, an industry-leading provider of On-Demand Pay as well as financial wellness solutions, today announced a $200 million asset-backed securitization (ABS) of its On-Demand Pay receivables. This landmark transaction, backed by some of the world’s most prestigious financial institutions, establishes a new asset class and significantly extends DailyPay’s capacity to partner with employers in discontinuing the traditional two-week pay cycle.

With DailyPay, employers have an opportunity to modernize their relationship with their employees by offering their employees what they want and need: pay on their own schedule. DailyPay enables employers to offer on demand access to pay with no impact to their own cash flow management or payroll processes.

“In a recent study, more than half of Americans reported living paycheck-to-paycheck. And with rising inflation, consumer confidence is waning,” said Stacy Greiner, Chief Executive Officer, DailyPay. “Hard working people now more than ever deserve access to their pay as they earn it. They deserve a financial system that works for them and addresses their on-demand pace of life. Our new capital position enables us to help even more employers and their employees, fueling our rapid growth.”

“This securitization marks a first for our industry, with strong investor demand validating our differentiated approach to delivering On-Demand Pay,” said Deepa Subramanian, Chief Financial Officer, DailyPay. “With $25 billion in payments volume, we are continuously looking for new ways to optimize our capital structure to support our growth ambitions.”

The offering included four classes of notes: Class A, Class B, Class C, and Class D. Morningstar DBRS rated all classes of notes, assigning ratings ranging from AA (sf) to BB (sf), respectively. Barclays acted as lead bookrunner and structuring agent, with Citi and Morgan Stanley serving as joint bookrunners. Latham & Watkins LLP advised DailyPay, and Mayer Brown LLP advised the bookrunners.

With the addition of the new $200 million securitization, DailyPay has secured nearly $1 billion in debt financing backed by its On-Demand Pay receivables, which includes its existing $760 million secured debt facility with Barclays, Citi, and TPG Angelo Gordon.