Same-day pay, also known as instant pay or on-demand pay, is revolutionizing the way workers receive their wages. This innovative payment model allows employees to access their earned wages before the traditional payday, providing greater financial flexibility and control.

The Rise of Same-Day Pay

In recent years, same-day pay has gained significant traction in the workforce, particularly among gig economy workers, hourly employees, and contractors. This trend has been driven by the increasing demand for financial flexibility and the need to bridge the gap between earning and accessing wages.

How Same-Day Pay Works

Same-day pay platforms typically integrate with a company's existing payroll system. Here's a general overview of the process:

  • Earned Wage Tracking: The system tracks the hours worked and wages earned in real-time.
  • Employee Access: Workers can view their available earned wages through a mobile app or web portal.
  • Instant Transfers: Employees can request to transfer their earned wages to their bank account or a designated debit card.
  • Fee Structure: Some providers charge a small fee for instant transfers, while others offer the service for free to employees.

Why Workers Prefer Same-Day Pay

As Head of Checkr Pay Chris Hollindale stated during the session Fast Access to Payments during Shift Work Summit:

"Workers face many challenges—financial burden and financial uncertainty is huge one—and drives the majority of decisions for gig workers; 70% of gig workers have less than $1,000 in savings—and over 40% have no savings at all—so it's a huge deal for them.

The result of all these problems is that financial health plays a huge role in decision-making for this population—and can be deciding factor as to where they choose to spend their time.

To put some challenges into perspective here are some recent studies that emphasize impact finances on shift workers—financially stressed workers are two times more likely look for another job—76% prioritize instant access payments ensure stability—and 85% would work more often if they were paid much faster."

Ahmed Siddiqui of Branch also shared his perspective on same day pay during the Shift Work Summit session titled Embedding Payments into Your Shift Work Experience.

"What we learned through that experience is that it wasn't necessarily like making more money as much as it was making money sooner.

And so all these people are making more money, but they're making it on the 15th and the 30th of every month. And for a lot of people, what ends up happening is that they will get paid, and then they have to spend all that money for everyday expenses, be it their rent, be it their groceries and whatnot, and they don't have very much money in between.

And so for a lot of these, I mean, this is a majority of America, by the way, we wanted to even out those problems, if we can get them paid, maybe more frequently, for example, that solves a lot of problems, because then they can go ahead and go to the grocery and get the things they need.

As the workforce continues to evolve, same-day pay is increasingly prevalent. This payment model supports the growing demand for financial flexibility and worker’s needs for more frequent pay cycles. As technology advances, we can expect to see even more seamless integration of same-day pay solutions with existing payroll and HR systems."

How HyperTrack Supports Same-Day Pay

HyperTrack can significantly assist with implementing same-day pay systems for businesses in the gig economy and shift work sectors. By implementing on-shift tracking and geofenced clock in/out solutions, companies can streamline payments for shift workers.

On-shift Tracking with Orders API

The Orders API feature is a key part of instant pay implementation, enabling seamless tracking of worker shifts from pre-shift to on-shift activities. With on-shift tracking portion of Orders API, the solution captures detailed insights into worker actions at the job site, including geofence entry and exit, and time spent within geofenced order destination locations.

  • Automatic geofence creation and expiry
  • Automate the creation of destinations to track for a specific amount of time
  • All entries and exits tracked at destination
  • Automate the tracking of entry times and exit times
  • Automatic summary of time spent on-site
  • Automate the documentation of time spent at specific locations
  • Embeddable ops views per shift tracked
  • Visualize shifts taking place at work sites in real time

These capabilities provide real-time proof of work and accurate data for calculating earnings, reducing disputes, and ensuring transparency. By leveraging features like geofences, metadata, and timeline annotations, the Orders API streamlines shift management and integrates effortlessly with payroll systems, ensuring timely and accurate payouts for instant pay.

View the docs page for the On-shift Tracking reference.

Geofenced clock in/out

The Geofenced clock-in and clock-out serve as a key part of instant pay implementation by ensuring instant feedback to the worker based on real-time location data and expected order destination location. By requiring workers to clock in and out only when inside the shift’s geofence, this feature guarantees that clock-in and clock-out locations are presented to the worker at the correct time and place, even if the worker’s device is offline, eliminating payment discrepancies and disputes.

  • Automated Proof-of-Work
  • HyperTrack's automated proof-of-work  is essential for quick and accurate payment processing:
  • Instant Validation:
  • HyperTrack can help automatically verify work completion, enabling faster payment processing
  • Discrepancy and Dispute Resolution:
  • HyperTrack provides an indisputable proof-of-work record, which helps in resolving payment disputes related to hours worked

The geotags associated with these events provide verifiable proof of work, enabling payroll systems to calculate earnings, lateness, and overtime seamlessly. These automations not only enhances operational efficiency but also ensure timely and accurate payouts, making geofenced clock-in and clock-out a critical enabler of instant pay implementation.

View the docs page for the Geofenced clock in/out reference.

By leveraging HyperTrack location intelligence infrastructure technology, companies can build a robust foundation for same-day pay systems, ensuring accurate tracking, quick verification, and seamless integration with payment processes. This can lead to improved worker satisfaction, increased operational efficiency, and a competitive edge in attracting and retaining talent in the gig economy and shift work sectors.

About HyperTrack

HyperTrack provides location intelligence for shift validation. HyperTrack validates over 1 million shifts every month for leading staffing marketplaces in healthcare, light industrial, retail, hospitality, and other industries. Staffing marketplaces using HyperTrack reduce no-shows by 60% and improve fill rates to over 95%. Schedule a briefing at https://hypertrack.com/

…….