September 22, 2022

Paying as you earn negates the need for payday loans according to Aite-Novarica group

Millions of working Americans are trapped in the vicious cycle of debt as a result of resorting to payday loans and paying expensive overdraft fees to pay their bills on time and make ends meet. However, according to new research from the Aite-Novarica Group, having access to your salary as you earn it can eliminate those crippling financial options of surviving paycheck to paycheck for the overwhelming majority of people who are stuck using these financial services. predators.

the to research confirm that DailyPay and its proprietary pay-on-demand (sometimes known as earned pay access) approach, giving employees 100% immediate access to their funds easily and reliably, is a remarkably effective solution to financial alternatives. costly such as payday loans, overdraft fees, late fees etc. Research also shows that DailyPay may stop relying on regular borrowing from friends to make ends meet, reduce financial stress, and improve overall financial well-being.

Aite-Novarica has found that using DailyPay improves workers’ bottom lines for a substantial majority of users. More than eight in 10 respondents (82%) who access their DailyPay BalanceTM on demand said they cared less about money since starting the program, and 75% said they were able better budget and plan with the possibility of accessing their income. on demand. And those numbers are generally valid for those who use pay-on-demand more frequently, including those who use higher percentages of their pay before payday, according to the survey results.

“Survey respondents were using expensive and arguably inferior alternatives before accessing DailyPay,” Leslie parrish, said senior analyst Aite-Norvarica. “These consumers feel much more in control of their finances after using DailyPay.”

The main conclusions of the research report are as follows:

  • The vast majority of payday loan and past overdraft users have been able to move away from these sub-optimal behaviors and most attribute the change to DailyPay.
  • The Aite-Novarica Group estimates that frequent payday loan users save between $ 624 and $ 930 per year by using DailyPay.
  • 95% of those who previously relied on payday loans in any way stopped using payday loans (81%) or reduced their use (15%) after using DailyPay. Almost nine in 10 respondents (88%) said they had stopped or reduced the use of these loans because of DailyPay.
  • The Aite-Novarica Group estimates that most overdrafts save $ 660 per year using DailyPay.
  • 97% of those who said they overdrafted their bank account before using DailyPay now rarely or never incur overdraft fees (79%) or report having fewer instances of overdraft fees (18%) after using DailyPay. 75% credited DailyPay for this reduction in overdraft fees.
  • DailyPay users also report being able to better manage their bill and loan payments and reduce requests for help from friends and family.
  • 88% had fewer issues with bills and loan payments after using DailyPay.
  • 94% give DailyPay credit for this change to make / charge loan payments.
  • DailyPay is achieving positive results across the board for users as the product made them worry less about money (82%), improved their ability to budget and plan (75%), and enabled them to reducing their debt (60%) and those who tend to use DailyPay relatively more frequently report even higher average savings and even greater previous reliance on inferior, predatory alternatives.

“This data is transformational and supports a very important conclusion – DailyPay is helping American workers stay out of debt,” said Matthieu kopko, vice president of public policy, DailyPay. “Thanks to DailyPay, 4 in 5 payday or overdraft loan users are freed from the debt cycle, with most of the remaining 20% ​​receiving substantial financial benefits. People are clearly saying that they need this simple, reliable service to make ends meet.

DailyPay has partnered with the Aite-Novarica Group, a financial industry research and advisory firm that focuses on financial matters, to independently conduct research on its pay-on-demand customer base. Aite Novarica’s online survey of 1,114 DailyPay customers was conducted in May 2021. 95% confidence interval with 3 point margin of error

  • Francis bignell

    Francis is a young journalist with a bachelor’s degree in classical civilization, he is interested in North and South America.

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