DailyPay raises $200M in second ABS, lifting receivables-backed funding to $1.4B

What's the deal? DailyPay, an On-Demand Pay provider, has completed a $200 million asset-backed securitization (ABS) of its On-Demand Pay receivables. Citi acted as lead bookrunner and structuring agent, with Bank of America, Barclays, KeyBancDealroom has a profile for this one. Try Dealroom →, ScotiabankDealroom has a profile for this one. Try Dealroom →, and Wells FargoDealroom has a profile for this one. Try Dealroom → also participating. The deal is DailyPay's second ABS, following an inaugural $200 million issuance in June 2025.

What's the endgame? DailyPay lets employers offer workers access to pay they have already earned before payday, funding the transfers itself with no impact on employer cash flow or payroll. The new capital supports a platform that serves more than 2,000 employers and over 6 million employees.

Why now? "Employers are increasingly embracing On-Demand Pay as a meaningful employee benefit, driving our need for funding capacity to support our growth," said chief financial officer Deepa Subramanian. It noted that the strong performance of the first ABS supported another oversubscribed transaction.

By the numbers: The offering included four classes of notes, rated by Morningstar DBRSDealroom has a profile for this one. Try Dealroom → from AA (sf) to BB (sf). With this deal, DailyPay has secured roughly $1.4 billion in debt backed by its receivables, including a $960 million secured credit facility and two $200 million ABS issuances.

The signal: DailyPay says it is the only On-Demand Pay provider to access the ABS market, turning earned-wage receivables into a rated asset class. Repeat issuance at this scale suggests investor appetite for the sector is holding — and that DailyPay is building a funding base to match its growth.

Read more: prnewswire.com

Image credit: DailyPay