DailyPay Sells Bonds Tied to Fees on Wages That Workers Tap Instantly
DailyPay is part of a broader group of companies looking to cater to workers who may struggle with access to cash between paychecks.
Photographer: Spencer Grant/Universal Images Group/Getty ImagesFintech company DailyPay Inc. this month sold $200 million in bonds backed by fees tied to the company’s main service, an app that lets workers access pay as soon as they’ve earned it rather than wait for paychecks.
Barclays led the sale, which consisted of three investment grade rated bonds and one rated junk, according to Bloomberg News deal information. Investors bought the highest rated and largest of the bonds for interest payments of 1.75 percentage points above Treasuries, or 5.63% per year, Bloomberg reported.