DailyPay completed a $200 million asset-backed securitization of its On-Demand Pay receivables, bringing total debt financing backed by those receivables to about $1.4 billion. The transaction is DailyPay’s second ABS issuance.
The company completed its first $200 million securitization in June 2025.
DailyPay said it remains the only On-Demand Pay provider to have accessed the asset-backed securities market.
DailyPay’s platform enables employees to access wages they have already earned before their regular payday.
The company funds those transfers without affecting employers’ cash flow or requiring changes to existing payroll systems.
DailyPay serves more than 2,000 employers and more than 6 million employees.
The latest offering included four classes of notes ranging from Class A through Class D.
Morningstar DBRS assigned ratings ranging from AA (sf) to BB (sf).
Citi served as lead bookrunner and structuring agent.
Bank of America and Barclays served as joint bookrunners, while KeyBanc, Scotiabank, and Wells Fargo acted as co-managers.
Latham & Watkins advised DailyPay, while Mayer Brown advised the bookrunners.
DailyPay’s approximately $1.4 billion of receivables-backed financing also includes a $960 million secured credit facility.
KEY QUOTES:
“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.”
Deepa Subramanian, CFO of DailyPay
