DailyPay indicates that by offering both a full prepayment model and a deduction model, employers will have greater choice and flexibility when modernizing their employees' compensation systems.
New York, September 29, 2026 / PRNewswire / — PayOnDemand (On - Demand Pay) Service Provider DailyPay announced today the launch of a "deduction mode" for pay-on-demand (deductions method). With this option, the amount transferred for pay-on-demand will be deducted from employees' salaries through the standard salary deduction process. DailyPay indicates that the company is currently the only large-scale service provider to offer both a full prepayment mode and a deduction mode.
Building on its coverage of over 6 million eligible employees, more than 2,000 employer clients, and over 180 pre-built integrations, DailyPay claims to provide employers with a fast track to launch on-demand payroll services without altering the employee experience. The company states that the deduction model offers employers an additional option, allowing them to configure on-demand payroll projects according to their unique payroll distribution structures. DailyPay integrates with leading human capital management (HCM), payroll, and time management systems to ensure a smooth rollout without disrupting business operations, while maintaining compliance, system stability, and user experience standards.
"With ten years of experience in paying salaries on demand and over 150 million transactions per year, we have applied this expertise to the launch of the deduction mode," said Poulomi Damany, Chief Product Officer at DailyPay. "The deduction option allows the payroll team to manage employees' salary records, direct deposits, and income without interfering with the existing systems. It's a simple way for employers to expand their options."
DailyPay indicates that the deduction model strengthens the company's mission to drive salary modernization and help workers achieve financial freedom, while also providing employers with more options. The company claims that through first-class customer implementation services, DailyPay can provide strong support from the very first day of the project and offer 24/7, multi-language customer service to support employees throughout the year.
“DailyPay took the time to understand how our salary system works and found the most suitable solution for us,” said DailyPay, a customer, along with Villas, of, and Holly Brook Senior Living, the Chief Financial Officer of Randy Porter. “The deduction mechanism seamlessly integrates into our existing infrastructure – employees can receive their salaries easily, and our payroll team has not encountered any disruptions with the current setup. This is a win-win for our partnership.”
About DailyPay
According to DailyPay, the company is a leader in the field of on-demand payroll distribution, helping employers modernize their methods of paying employees. DailyPay serves over 2,000 employers and more than 6 million employees, including many of the world's most renowned brands. The company states that by providing tools for accessing earned wages and managing financial health, DailyPay helps employees manage their finances and also assists employers in attracting and retaining talent. DailyPay claims that it is helping to define the future of payroll, which means matching the speed of capital flow with the pace of work.
