The second asset-backed securities transaction supported continued growth, enabling DailyPay to increase its total financing scale, which is backed by payables on demand, to approximately $1.4 billion.
New York, October 8, 2026 / PRNewswire / -- On-demand payroll company DailyPay announced the completion of a $200 million issuance of asset-backed securities ( ABS ) based on its receivables from on-demand payroll services. This is the second ABS issuance for the company; the first securitiesization transaction, also worth $200 million, was completed in June 2025. DailyPay noted that the company is the only on-demand payroll service provider to enter the ABS market.
DailyPay enables employers to offer on-demand salary payments as a benefit to their employees, allowing them to withdraw their earned wages before the payday; at the same time, the related fund transfers are provided by DailyPay, without affecting the employer's cash flow or existing payroll processes. The company states that this specially raised funds will support the expansion of its platform, which currently serves over 2,000 employers and more than 6 million employees.
DailyPay Chief Financial Officer Deepa Subramanian stated: "Employers are increasingly viewing pay-on-demand as a meaningful employee benefit, which has driven our need for financing capabilities to support the company's growth. The strong performance of our first ABS supported another transaction that received over-subscription, indicating a persistent demand from investors for this asset class that we pioneered. It also helps to reduce our capital costs and broaden our financing base."
This issuance includes four tranches of securities: Class A, Class B, Class C, and Class D. Morningstar DBRS has rated all these tranches, assigning ratings ranging from AA ( sf ) to BB ( sf ). Citibank served as the lead underwriter and structural design agent, while Bank of America and Barclays acted as co-lead underwriters. KeyBanc , BNP Paribas Canada, and Wells Fargo served as co-administrators. Latham & Watkins LLP acted as legal advisors for DailyPay, and Mayer Brown LLP served as the underwriter's legal counsel.
With the completion of the latest securitization transaction, DailyPay indicates that the company has obtained debt financing amounting to approximately $1.4 billion, supported by its receivables from on-demand salary payments. This includes a guaranteed credit line of $960 million, the first issuance of $200 million under ABS completed in June 2025, and the second issuance of $200 million under ABS completed in October 2026.
About DailyPay
DailyPay indicates that the company is a leader in the field of on-demand payroll services, dedicated to helping employers modernize their salary payment methods. DailyPay serves over 2,000 employers and more than 6 million employees, including many of the world's most well-known brands. The company claims that by providing channels for withdrawing earned wages and financial health tools, DailyPay helps employees manage their personal finances and also assists employers in attracting and retaining talent. DailyPay signifies that the company is helping to shape the future of compensation, aligning the speed of capital flow with the pace of work.
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