WENY News - "Payday Apps" Allow Employees To Have Payday Everyday

"Payday Apps" Allow Employees To Have Payday Everyday

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(CBS)-- A number of major employers are allowing their employees to have a payday, every day if they want. Uber, McDonald's and Westgate Resorts are among the companies partnering with so-called payday apps.

     Jamil Mangan is an aspiring actor who also works a temp job, and is always worried about surprise expenses.

     "Emergencies always pop up – and they pop up when you least expect them," Mangan says.

     But now he has a lifeline in the palm of his hand. He's one of more than 100,000 people using DailyPay: an app that allows workers to tap into their current earnings days ahead of payday.

     "I use it probably about twice a month, in times that I'm sort of in a bind, and I need some cash for the metro, or a cable bill comes in," explains Mangan.

     "Our users range from the minimum range hourly employee, all the way up to someone who makes 6 figures a year," says Jason Lee, the CEO of DailyPay.

     Jason Lee created DailyPay. It's just one of several insta-pay apps partnering with employers and their employees.

     "This is not folks trying to buy a new flatscreen tv .. this really is 'hey, I've got rent coming due, and I'm  just $80 short," Lee explains.

    Fees range from just $1-$3 a transaction, a far cry from high-interest, high-fee payday loans. Critics of Insta-Pay apps say they can lead to bad habits like not planning ahead and not saving. Mangan tries to be responsible.

     "I can determine whether I get paid instantly or whether I get paid on Friday," says Mangan.

     DailyPay is only available to workers whose companies have partnered with the app.

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