No more waiting: Tech startup Instant Financial enables daily paychecks

Aimed at millennials, could stop payday loan cycle
No more waiting: Tech startup Instant Financial enables daily paychecks
Posted at 8:27 AM, Oct 24, 2017
and last updated 2017-10-24 08:27:50-04

The days of waiting two weeks or even a month are over for employees at several national food and hospitality retailers that are now paying workers daily.

Since 2015, tech startup Instant Financial has enabled companies like McDonalds and Outback Steakhouse to give low-wage workers more financial flexibility. CEO Steve Barha told Business Insider the option caters to millennials who prefer quick cash over waiting for a lump sum.

"Basically, their life is real-time," Barha told Business Insider. "Their communication is real-time. Their transportation is real-time, with Uber and Lyft. So this program really aligns with their real-time life and being in control of their whole life experience."

It's also a way to break the predatory lending cycle of payday loans that low-wage workers often fall into, Business Insider reports. The network includes 50 corporate partners with 150,000 employees across the country.

The way it works is that employees can request up to 50 percent of their current day's pay within an hour after their shift ends. Those funds go into a debit account the worker can immediately use as needed.

"On day six of the pay cycle, you can't all of a sudden pull days three, four, and five of the pay cycle, and now you have a bunch of money," Barha said. "It's really a little bit of money, and it's there when you need it."

Instant Financial claims its data shows increases in employee satisfaction and retention and a decrease in absenteeism, Business Insider reports.