The platform “helps the millions of Americans living paycheck to paycheck get by between paydays and plan for the future,” ZayZoon cofounder Darcy Tuer says.
Year-over-year, the Calgary-headquartered upstart has seen 400% growth in payouts, fuelled by an expanding customer base.
Now one of Canada’s largest banks is partnering with New York’s DailyPay to provide similar wage access to employees of commercial clients, providing real-time access to wages with funds deposited into direct-deposit accounts and available for immediate use.
BMO, the eighth largest bank in North America by assets, believes commercial clients will gain a competitive advantage as it relates to hiring and recruiting in a historically tight labour market.
“More than ever before, businesses require flexible digital payment solutions that reflect the changing economy and new expectations surrounding employees’ payment preferences,” asserts Andrew Harrison, Head of U.S. Digital Partners at BMO.
“Partnering with DailyPay is one of the many ways we’re empowering our clients to help their employees by providing innovative and convenient payment solutions,” he says.
Research from Mercator Advisory Group, commissioned by DailyPay, showed that employee tenure increased by an average of 35% when they have the option for earned wage access.
“DailyPay is pleased to partner with top financial institutions like BMO to support their commitment to financial equity and inclusion,” stated Kevin Coop, CEO.
“Our partnership will put our highly sought-after benefit in the hands of more businesses and their employees, ultimately driving better financial outcomes for all,” he added.
Another Canadian firm in the EWA space is Payfare, which trades on the Toronto Stock Exchange.
Targeting gig workers, the Toronto firm provides immediate access to earnings, bypassing traditional waiting periods and reducing reliance on payday loans, overdrafts, and credit cards.