DailyPay, which happens to be one of the leading companies dealing with earned wage access and on-demand pay services, has just completed an on-demand pay receivable $200 million Asset-Backed Securitization (ABS). This is the second time that DailyPay is offering such ABS having done a similar one worth $200 million in June 2025. Until date, DailyPay remains the only company in the on-demand pay market to have offered an institutional ABS.
Via its financial technology platform, DailyPay enables enterprise employers to provide on-demand pay as a voluntary employee benefit. This provides employees access to their earned wages before payday, while at the same time DailyPay underwrites all advance payments without affecting the cash flow mechanics of its clients and payroll processes. The newly raised capital will be used in order to grow DailyPay’s operating capabilities, which already serve more than 2,000 corporate clients and over 6 million employees.
Meeting Growing Enterprise Demand and Lowering Capital Costs
The growing competition in the labor market leads to the increasing demand for financial wellness benefits among enterprises in retail, healthcare, hospitality, and logistics industries.
The institutional market’s receptive response to DailyPay‘s credit profile highlights the maturity and stability of short-duration earned wage receivables as a distinct financial asset class.
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“Employers are increasingly embracing On-Demand Pay as a meaningful employee benefit, driving our need for funding capacity to support our growth,” said Deepa Subramanian, Chief Financial Officer, DailyPay. “The strong performance of our inaugural ABS supported another oversubscribed transaction, demonstrating continued investor demand for an asset class we pioneered helping reduce our cost of capital and broadening our funding base.”
Transaction Structure and Institutional Leadership
The issuance of the $200 million debt was made up of four different classes of notes, namely, Class A, Class B, Class C, and Class D. The rating agency that rated all the four notes is Morningstar DBRS, and their ratings ranged from AA(sf) to BB(sf).
The transaction attracted top-tier financial institutions across structuring and underwriting roles:
Lead Bookrunner & Structuring Agent: Citi
Joint Bookrunners: Bank of America and Barclays
Co-Managers: KeyBanc, Scotiabank, and Wells Fargo
Legal Advisors: Latham & Watkins LLP acted as legal advisor for DailyPay, whereas Mayer Brown LLP advised the underwriting book-runners.
Post the current offering, DailyPay has now raised a total of $1.4 billion in credit capacity supported by the company’s portfolio of on-demand pay receivables. The capital structure has a combination of $960 million in secured revolving credit facility along with the two $200 million ABS issuances in June 2025 and October 2026.
Through diversified financing and low-cost capital, DailyPay is further strengthening its balance sheet for future business growth and innovation.
