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Daily Mail
14 hours ago
- Business
- Daily Mail
Employee benefit linked to financial stress takes aim at traditional 401(K)s as US debt skyrockets
Americans are increasingly turning to services that are setting off alarm bells. Instead of waiting for a traditional payday, workers are increasingly using apps like DailyPay, FlexWage, and Tapcheck to get paid the same day they work — sometimes just hours after clocking out. It's called on-demand pay, and it's growing fast as millions of households face financial stress. The service lets users withdraw wages they've already earned before their scheduled payday. 'It helps a lot of employees, especially ones in school who need to pay a bill while check isn't scheduled for another week,' one Reddit user said about DailyPay. 'But don't make it a habit — when you get paid in full, your check is little.' These apps are marketed as an alternative to payday loans. There's no interest, but workers typically pay a flat fee of $2 to $5 for instant access. Next-day deposits are often free. The rise of on-demand pay comes as Americans face mounting financial pressure from nearly every direction. Total household debt surged by $167 billion in the first quarter of 2025, reaching a record $18.2 trillion, according to the Federal Reserve Bank of New York. Around $5 trillion of that debt is non-housing, consumer debt. While credit card balances dipped slightly — falling $29 billion from the previous quarter — student loan debt jumped by $16 billion. Delinquencies spiked after the end of a multi-year pause on repayment reporting. Overall, 4.3 percent of household debt is now delinquent in some way. That situation is especially dire for Americans living paycheck to paycheck. Roughly one in three consumers struggle to manage their debt, and 35 percent say they can't pay all their bills on time, according to new survey data from digital finance firm Achieve. America's labor market has shown surprising resilience - analysts were recently surprised with how many US employees got jobs last month 'When people are overwhelmed and about to miss bill payments, they often don't know what steps to take,' Brad Stroh, the firm's CEO said about the survey's findings. The agency suggested consumers should avoid quick fixes to their debt problems like cash advances, saying they 'can deepen long-term financial challenges.' 'One significant concern with on-demand pay is the potential for high associated costs,' Austin Kilgore, an analyst at the Achieve Center for Consumer Insights, told 'The real danger emerges when individuals fall into a cycle of repeatedly accessing their wages early rather than managing their existing funds. 'This can lead to a situation where a significant portion of their income is consumed by fees, essentially preventing them from having full access to their earned money.' But the problem doesn't seem to stem from American employment opportunities. Early Thursday, the Labor Department released it's June jobs report that showed shocking resilience in the jobs market. Last month, America added 147,000 jobs, up from 139,000 added in May. Hidden in today's numbers was good news for debt-burdened Americans: the average wage is still increasing. Last month, employers typically paid $36.30 an hour for work, an $0.08 hourly increase from the month before. The positive numbers were shocking to many analysts, especially given the news on Wednesday.
Yahoo
14-06-2025
- Business
- Yahoo
Tapcheck embeds EWA in payroll
This story was originally published on Payments Dive. To receive daily news and insights, subscribe to our free daily Payments Dive newsletter. Earned wage access provider Tapcheck is integrating its EWA software with Workday's human resources services as part of an ongoing effort to expand its business to millions of additional employees. The company announced Friday that it has achieved certified integration status on the Workday Marketplace, which allows companies using Workday's human capital management platform to access solutions for their employees' needs. Such integrations with HR software systems allow for a larger pool of potential new EWA users and also provide increased financial and technical efficiencies for both employers and EWA companies, Tapcheck Chief Executive Ron Gaver said in a May interview at the company's headquarters in Plano, Texas. 'With the flip of a switch, through the software … we want to enable it to millions of employees,' he said of the company's move into HR integrations versus separate one-off employer connections. Earned wage access – also known as on-demand pay – allows workers to tap their earned income before a regularly scheduled payday, generally without costs for employers. These payments typically cover hourly employees, such as those working in restaurants, hotels, and home health care, with EWA giving employers a means to retain and recruit lower-wage workers. Most EWA providers charge a fee to employees to receive money instantly – it's $3 to $5 at Tapcheck – or will offer a free option for slower access that is usually within one or two business days. Workday says its platform is used by around 11,000 organizations globally, including 60% of those listed in the Fortune 500. Tapcheck works with about 4,000 companies including Hilton Worldwide Holdings, McDonald's, Planet Fitness and Taco Bell. Privately held Tapcheck, which raised $25 million in new funds from PeakSpan Capital in April, declined to reveal any financial data. The company is profitable, Gaver said. Tapcheck rolled out a similar integration in April, embedding its EWA tools within payroll software from Viventium, a provider of payroll, human resources and compliance solutions based in Berkeley Heights, New Jersey. About 500,000 healthcare workers are covered by Viventium's cloud-based payroll platform, the companies said. Tapcheck will pursue additional payroll integrations, Gaver said. The Workday partnership 'represents a significant advance towards cultivating financially resilient and content employees, which ultimately enhances recruitment, retention, and overall business success,' Gaver said in a press release shared with Payments Dive. Larger EWA competitors, such as DailyPay and Payactiv, also seek to integrate their solution with numerous payroll and HR platforms. San Jose, California-based Payactiv, for example, says it works with seven of the largest HR software companies, including ADP, Oracle and Workday. A spokesperson for New York-based DailyPay, another large EWA provider, said most payroll companies that operate a marketplace will typically have multiple EWA vendors for employers to select among. DailyPay integrates with about 200 payroll systems, he said by email this week. HR marketplace-based flexibility also offers companies a simpler path for switching their EWA provider. Since early 2024, more than half of Tapcheck's new customers have shifted to it from another EWA company, asserted Gaver, who co-founded the company with his wife, Kayling, in Los Angeles six years ago. 'From our perspective, the market is really pretty much open,' Gaver said. 'It's about 80 million hourly employees in the U.S., and maybe 15% of them right now have access to earned wage access. Eventually, it will be something that everyone has. It's going to be kind of a utility that is going to be a plug-in to payroll and also time-attendance systems.' States are gradually beginning to regulate EWA providers, with Arkansas, Maryland and Utah adding to the collection this year. Last year, the Consumer Financial Protection Bureau sought to regulate EWA providers under federal lending laws, a move that fintechs opposed. However, under the Trump administration, the CFPB has been reversing many of its prior policies. In January, the bureau rescinded a 2020 advisory opinion classifying certain EWA products as credit. It has not yet addressed the Biden administration's July 2024 interpretative rule on EWA. This story has been updated to correct the spelling of Tapcheck co-founder Kayling Gaver's name. Recommended Reading Maryland passes EWA law Sign in to access your portfolio
Yahoo
13-06-2025
- Business
- Yahoo
Tapcheck Named Workday Innovation Partner
Industry leaders aim to revolutionize financial wellness and payroll efficiency, transforming workplace satisfaction and productivity with earned wage access PLANO, Texas, June 13, 2025--(BUSINESS WIRE)--Tapcheck , today announced that it has achieved Workday Certified Integration status. As a Workday Innovation Partner, Tapcheck offers customers seamless integration between Workday Human Capital Management (HCM) and Tapcheck's on-demand pay solution, Tapcheck Earned Wage Access. This integration aims to alleviate financial stress for employees by providing flexible access to earned wages, all while maintaining the integrity of existing payroll processes. Companies like Beacon Mobility are integrating Tapcheck into Workday HCM to help improve hiring outcomes, boost productivity, and enhance employee engagement—key elements for business success. It offers employees instant access to their earned wages, helping to prevent them from falling into high-interest debt – 67% of employees report that Tapcheck has kept them away from challenging financial situations. By providing seamless connectivity with Workday HCM, which includes Workday Time Tracking, and Workday Payroll, Tapcheck supports financial wellness without complicating payroll management. "Integrating Tapcheck with Workday is a strategic move that revolutionizes business payroll and employee financial wellness," says Ron Gaver, co-founder and CEO of Tapcheck. "By partnering with Workday HCM, we are going beyond providing on-demand pay—we are incorporating financial security into the daily routine of the workforce. This partnership is not merely a technical integration; it represents a significant advance towards cultivating financially resilient and content employees, which ultimately enhances recruitment, retention, and overall business success. This integration offers Tapcheck a crucial opportunity to penetrate a vast new sector, presenting tremendous growth potential." "Our partnership with Tapcheck has been wonderful," says Lauren Gonzalez, VP of Human Resources for Beacon Mobility. "Their team is responsive, knowledgeable, and fun! Having this added benefit available to our employees aligns with our people-first culture and has added value to our 'attract and retain' initiative." More information on Tapcheck's integration can be found on the Workday Marketplace, which provides easy access to solutions built by Workday and its partners. ABOUT TAPCHECK Tapcheck is the leading on-demand pay provider, empowering employees to take control of payday. The easy-to-use platform integrates seamlessly with nearly 300 employer payroll and timekeeping systems, which ensures accurate balances and a hassle-free experience for businesses and their employees. Offered at no cost to an employer, employees use Tapcheck to access wages that they've earned, safely and responsibly–without the worry of hidden fees, over advances, or payroll errors. Tapcheck's proprietary earned wage access engine offers the most accurate, reliable, and headache-free on-demand pay solution for workers and their employers. Companies never lose control of payroll and employee paychecks always reflect their advances. The company works with major companies like Powerback Rehabilitation, McDonald's, and Hilton. With nearly $1 billion of early wages paid out to millions of users, Tapcheck continues to be at the forefront of improving job applicant attraction and employee retention rates across various sectors. To learn more about how Tapcheck can integrate with your Workday system and instantly benefit your organization through EWA, connect with our team at sales@ View source version on Contacts MEDIA CONTACT: Kristen Grossi, talkTECHKristen@ Sign in to access your portfolio
Business Wire
13-06-2025
- Business
- Business Wire
Tapcheck Named Workday Innovation Partner
PLANO, Texas--(BUSINESS WIRE)-- Tapcheck, today announced that it has achieved Workday Certified Integration status. As a Workday Innovation Partner, Tapcheck offers customers seamless integration between Workday Human Capital Management (HCM) and Tapcheck's on-demand pay solution, Tapcheck Earned Wage Access. This integration aims to alleviate financial stress for employees by providing flexible access to earned wages, all while maintaining the integrity of existing payroll processes. "Integrating Tapcheck with Workday is a strategic move that revolutionizes business payroll and employee financial wellness," says Ron Gaver, co-founder and CEO of Tapcheck Share Companies like Beacon Mobility are integrating Tapcheck into Workday HCM to help improve hiring outcomes, boost productivity, and enhance employee engagement—key elements for business success. It offers employees instant access to their earned wages, helping to prevent them from falling into high-interest debt – 67% of employees report that Tapcheck has kept them away from challenging financial situations. By providing seamless connectivity with Workday HCM, which includes Workday Time Tracking, and Workday Payroll, Tapcheck supports financial wellness without complicating payroll management. "Integrating Tapcheck with Workday is a strategic move that revolutionizes business payroll and employee financial wellness," says Ron Gaver, co-founder and CEO of Tapcheck. "By partnering with Workday HCM, we are going beyond providing on-demand pay—we are incorporating financial security into the daily routine of the workforce. This partnership is not merely a technical integration; it represents a significant advance towards cultivating financially resilient and content employees, which ultimately enhances recruitment, retention, and overall business success. This integration offers Tapcheck a crucial opportunity to penetrate a vast new sector, presenting tremendous growth potential." 'Our partnership with Tapcheck has been wonderful,' says Lauren Gonzalez, VP of Human Resources for Beacon Mobility. 'Their team is responsive, knowledgeable, and fun! Having this added benefit available to our employees aligns with our people-first culture and has added value to our 'attract and retain' initiative.' More information on Tapcheck's integration can be found on the Workday Marketplace, which provides easy access to solutions built by Workday and its partners. ABOUT TAPCHECK Tapcheck is the leading on-demand pay provider, empowering employees to take control of payday. The easy-to-use platform integrates seamlessly with nearly 300 employer payroll and timekeeping systems, which ensures accurate balances and a hassle-free experience for businesses and their employees. Offered at no cost to an employer, employees use Tapcheck to access wages that they've earned, safely and responsibly–without the worry of hidden fees, over advances, or payroll errors. Tapcheck's proprietary earned wage access engine offers the most accurate, reliable, and headache-free on-demand pay solution for workers and their employers. Companies never lose control of payroll and employee paychecks always reflect their advances. The company works with major companies like Powerback Rehabilitation, McDonald's, and Hilton. With nearly $1 billion of early wages paid out to millions of users, Tapcheck continues to be at the forefront of improving job applicant attraction and employee retention rates across various sectors. To learn more about how Tapcheck can integrate with your Workday system and instantly benefit your organization through EWA, connect with our team at sales@
Associated Press
14-04-2025
- Business
- Associated Press
Tapcheck Raises $225 Million in Equity and Debt Funding to Redefine Payday for America's Workforce
PLANO, Texas--(BUSINESS WIRE)--Apr 14, 2025-- Tapcheck, a leading on-demand pay provider, today announced it has raised $225 million in combined equity and debt financing. This latest funding includes a $25 million Series A extension round led by existing investor, PeakSpanCapital, and a $200 million credit facility provided by Victory Park Capital. 'We're thrilled to have the continued support of PeakSpan Capital and the strategic backing of Victory Park Capital,' said Ron Gaver, co-founder and CEO of Tapcheck. 'This infusion of capital will further strengthen our capacity to empower employees nationwide and alleviate financial pressure by granting access to earned wages ahead of traditional pay schedules.' Founded in 2019 by entrepreneurial husband-and-wife team Ron and Kayling Gaver, Tapcheck emerged from the duo's vision to address the financial difficulties caused by traditional pay cycles. The company enables workers to access their earned wages seamlessly before payday, easing the paycheck-to-paycheck strain and in turn, improving employee morale, retention, and productivity. Tapcheck's on-demand pay platform seamlessly integrates with nearly 300 payroll and timekeeping systems, offering a smooth and precise experience for employers and employees alike. Provided at no cost to employers, Tapcheck allows employees to safely and responsibly access their earned wages, helping them avoid hidden fees and have greater financial flexibility. Employers using Tapcheck report over 50% improvement in employee retention, with 70% of employees noting that it reduces their financial stress. In the past five years, Tapcheck has facilitated over $1 billion in early wage funding and served 12,000 employer locations. The company is committed to security, compliance, and transparency, ensuring payroll control remains intact for organizations. Tapcheck's proprietary earned wage access engine provides exceptional accuracy in wage calculations, enhancing financial transparency and boosting employee engagement. With an 'Excellent' Trustpilot rating, Tapcheck is renowned as one of the most trusted earned wage access providers globally, supported by increasing usage rates and positive feedback from both employers and employees. Tapcheck partners with companies like Hilton, Planet Fitness, Taco Bell, and Jiffy Lube and has achieved remarkable milestones, including significant user adoption in the quick-service restaurant (QSR) sector—serving 112,000 McDonald's employees and enabling over $160M in advance wage disbursement—as well as hundreds of thousands of frontline caregivers working in skilled nursing, home health, and rehabilitation sectors. 'We are fired up to embark on this next chapter alongside Tapcheck,' said Jack Freeman, partner at PeakSpan Capital. 'Over the last three years, we've witnessed Ron and Kayling assemble a world class team, build game changing products and amplify reach through growing by over 20x. They've done so while tripling down on user experience, payroll accuracy, integrations and onboarding – Tapcheck's standout strengths, enabling the business to drive maximum value to the end user wage worker.' The capital injection will support the continued development of Tapcheck's newest product, designed to give millions of employees early access to their wages. It will also enhance the accessibility of Tapcheck's Mastercard offering and accelerate the expansion of its AI capabilities. Through these advancements, Tapcheck aims to solidify its position as a leader in the next generation of earned wage access solutions. 'Tapcheck is setting a new standard for how employees access and manage their earnings,' said Jason Brown, senior partner at Victory Park Capital. 'By addressing real financial needs while driving retention and performance for employers, Tapcheck is delivering measurable value – and we have strong confidence in the company's leadership, model, and mission.' ABOUT TAPCHECK Tapcheck is the leading on-demand pay provider, empowering employees to take control of payday. The easy-to-use platform integrates seamlessly with 250 employer payroll and timekeeping systems, which ensures accurate balances and a hassle-free experience for businesses and their employees. Offered at no cost to an employer, employees use Tapcheck to access wages that they've earned, safely and responsibly – without the worry of hidden fees, over advances, or payroll errors. Tapcheck's proprietary earned wage access engine offers the most accurate, reliable, and headache-free on-demand pay solution for workers and their employers. Companies never lose control of payroll and employee paychecks always reflect their advances. ABOUT PEAKSPAN CAPITAL PeakSpan Capital is a growth equity firm based in New York City and San Mateo. Having partnered with over 50 high-growth software businesses and with $1.7B+ in AUM, PeakSpan's mission is to be the partner of choice for growth-stage entrepreneurial teams who are building amazing software targeted at business buyers of all sizes. PeakSpan combines deep domain expertise within a select number of themes with a proprietary technology platform providing visibility into company and market performance to help disruptive entrepreneurs drive resilient, risk-adjusted value creation. ABOUT VICTORY PARK CAPITAL Victory Park Capital Advisors, LLC ('VPC' or the 'Firm') is a global alternative asset manager that specializes in private asset-backed credit. In addition, the Firm offers comprehensive structured financing and capital markets solutions through its affiliate platform, Triumph Capital Markets. The Firm was founded in 2007 and is headquartered in Chicago. In 2024, VPC became a majority-owned affiliate of Janus Henderson Group. The Firm leverages the broader resources of Janus Henderson's 2,000+ employees across offices in 25 cities worldwide. VPC is a Registered Investment Advisor with the SEC. For more information, please visit View source version on CONTACT: Tapcheck Kristen Grossi, talkTECH [email protected] Park Capital Jordan Niezelski, Edelman Smithfield [email protected] KEYWORD: UNITED STATES NORTH AMERICA TEXAS INDUSTRY KEYWORD: PERSONAL FINANCE APPS/APPLICATIONS TECHNOLOGY HUMAN RESOURCES FINANCE FINTECH PROFESSIONAL SERVICES SOFTWARE DATA MANAGEMENT ASSET MANAGEMENT SOURCE: Tapcheck Copyright Business Wire 2025. PUB: 04/14/2025 07:07 AM/DISC: 04/14/2025 07:07 AM
