Andrew Brandman wasn’t surprised when he heard the results of the survey — the one by FinanceBuzz that found a majority of Americans think two weeks between paychecks is too long. More than half, in fact, said they would rather be paid every week.
Brandman, the Chief Operating Officer of DailyPay, is part of a company that has built its business on that very idea. So, his response to weekly pay: Why stop there?
“Nearly everything we do now happens very quickly: we shop, book travel, and move money with a tap,” he said. “Yet how most people get paid still runs on a system built nearly a century ago.”
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The survey of 2,000 people, sponsored by Wells Fargo, shows why the wait between paychecks matters.
Federal labor data shows biweekly pay is the most common schedule at private businesses, used by 43% of them. But 57% of survey respondents said they feel financial strain in the days before payday, and 43% said they put off buying essentials such as groceries and medicine until the money arrives. Six percent said they have asked their employer to change their pay schedule.
When payday comes, most of the money goes right back out. Eighty percent said paying bills is the first thing they do, 71% put money into savings and 70% pay down credit cards or other debt.
It’s not all business, though. Nearly half said they treat themselves to something, and one in three called payday their favorite day of the month.
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DailyPay has been making that case for years. The company offers on-demand pay, a benefit employers can provide that lets workers get access to wages as they earn them. Company officials say they serve more than 6 million workers nationally, including about 200,000 in New Jersey.
This summer, it made the point in memorable fashion. DailyPay turned a diner on Manhattan’s Lower East Side into a 1938-era eatery, complete with 30-cent cheeseburgers and 10-cent milkshakes, to show that the two-week pay cycle dates to that era and has barely changed since.
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Brandman said it’s time to go back to the future.
“The old view is that pay cycles are fixed and unchangeable,” he said. “We see them as a structural barrier.
“On-demand pay is a benefit employers can offer that fits the way people live today, giving employees access to pay as they earn it.”
