Published by Jessica Weisman-Pitts
Posted on April 10, 2025
4 min readLast updated: February 26, 2026
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By Rob Nardelli, Director of Commercial Banking, DailyPay
By Rob Nardelli, Director of Commercial Banking, DailyPay
Let’s say the rent is due on Tuesday, but you don’t get paid until Friday. And let’s say you just paid the phone and electric bill and are a little short on available funds. What can you do?
For millions of hard-working Americans, this scenario is all too real. Most of the options to pay a bill on time and avoid a late fee are costly such as payday loans. Making ends meet is no easy task. Research shows that the majority (65%) of Americans are considered to be living paycheck-to-paycheck, meaning that after paying for basic necessities such as rent, food, and gas, one has nothing left for savings or other expenditures.
Adding to their financial challenges, workers must deal with the high cost of seemingly everything. Inflation is still stubbornly high at 2.8%, while housing costs are up over 6% (2023 vs. 2024). According to research from LendingTree, just under half (45%) of Americans say they’ve paid at least one bill late in the past 12 months.
However, in so many instances, the ability to pay a bill on time comes down to the timing of one’s pay. If a bill and payday are misaligned, as referenced earlier, it could send a worker into a negative financial spiral.
But if an employee already worked those hours, why should they be forced to wait for a schedule while bills are due? Especially when that wait could force them into a cycle of debt.
Fortunately, technological advancements in money movement are innovating the archaic pay cycle. The rise of employer-sponsored earned wage access solutions, partnering with cutting-edge electronic payment rails, helps put money in the pockets of workers instantly in real time.
For example, in 2024, DailyPay, a leading provider of on-demand pay, moved $26 billion on its worktech platform, clearly indicating that the benefit has tremendous relevance in the lives of millions of workers everywhere. However, for the funds to arrive in a fast, safe, and reliable manner, DailyPay partners with The Clearing House’s RTP® network. This enables the funds to be processed immediately, at any time - day or night, which is critical for workers because bills wait for no one.
"In today’s competitive labor market, instant access to wages via real-time payments is becoming a necessary and expected employee benefit, but also provides a huge advantage to HR leaders,” said Elena Casal, Chief Client Officer of The Clearing House.
Research shows that having access to earned pay before payday can have a tangible positive impact on the financial lives of workers. For example, in a study conducted by Arizent, about 7 of 10 (69%) earned wage access users who previously paid late fees do this less often or stopped completely, while over 6 in 10 (62%) of users who previously incurred credit card interest charges do this less often or stopped completely.
For employers, having more financially secure employees is good for business. According to recent research, American companies are estimated to lose around $500 billion annually due to employee financial stress, which significantly impacts productivity and performance when employees are worried about their finances. So offering financial wellness tools such as earned wage access, powered by fast and secure payment rails, can go a long way in helping workers pay bills on time and avoid the never-ending cycle of debt.
“Earned wage access via real-time payments is a win for employers and employees that gives workers more control and flexibility of their finances,” said Casal. “HR professionals interested in attracting and retaining talent should differentiate themselves with a flexible program for wage disbursement.”
A recent poll from Bankrate revealed that one-third (33 percent) of Americans have more credit card debt than emergency savings. Clearly, American workers need help. Fortunately, there are forward-thinking employers who are taking advantage of new technologies that make it easier for their valued team members to thrive and bring the best versions of themselves to work every day.
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