Are you a Dasher? Typically, you’ll be paid weekly if you’re a driver for DoorDash, but if you sign up for DoorDash Daily Pay, you can have access to your earnings as soon as you earn them.
The partnership between DoorDash and DailyPay is intended to reduce financial stress and help you budget, by sending you your hard-earned cash when you need it most, rather than having to wait for it. On the surface, DailyPay sounds excellent… but is it really a good solution for users? Check out the advantages and disadvantages of this service below.
Advantages of DailyPay
Convenience – the most significant benefit of using DailyPay is the convenience and flexibility it offers users when it comes to getting paid instantly for work already done. Traditional payroll systems usually involve weekly or monthly payments, which isn’t great if an urgent bill arrives unexpectedly in the mail, or if you’ve simply run out of cash before payday. With the DailyPay service, you can transfer funds you’ve already earned into your bank account the next business day, or instantly, if you want to. This allows you to be more in control of your income, helping you to budget and spend money when you need to.
It’s like getting a paycheck advance – any money you transfer via DailyPay is deducted from your total earnings.
Provides a clear picture of your earnings – within the DailyPay dashboard, you can refresh and update your balance every 15 minutes, which is ideal if you want to see your earnings when you’re in the middle of a dash.
Disadvantages of DailyPay
An extra day to wait for payment – usually you’ll get paid each Wednesday with DoorDash. If you set up DailyPay and choose not to make any transfers (to save on transfer fees), you’ll get paid your full weekly earnings amount, but a day later. This is because DoorDash pay DailyPay and then DailyPay will pay you.
Transfer fees – these come into play when you want to access your cash instantly. You can choose from a manual or automatic transfer when you set up your account. Automatic transfer means daily fees, which as you can imagine can significantly add up. There are ways to minimise these costs, however, read on!
DailyPay fees are straightforward. If you opt to receive your earnings automatically the next day, you’ll be charged $1.25 for each transfer. If you set up the manual instant transfer option, the fee rises to $2.99. You can pay the fees, your employer or a combination of both.
The manual transfer option is the better route to go down if you don’t need to transfer funds too often, as you’ll be able to keep fees to a minimum.
DailyPay could provide a good budgeting solution for you if you’re a driver with DoorDash and need to access your cash urgently. However, the fees may be off-putting if you think you’ll need to transfer funds on a daily basis.
For budget management, there are other solutions in the market that you may wish to consider, such as one of these below.
Corporates such as Walmart use Earnin to help their employees get an early paycheck and better manage their personal finances. This app doesn’t charge fees (although it prompts users to leave a tip), but you’ll need to see if your employer works with the app. Read this article for more details: Earnin App.
This is an app that helps you prevent overdrafts, by sending you a warning when you’re close to overdrafting. It even provides small loan options for up to $75 (fees apply). Read more about the Dave App.
MoneyLion is a smart app that offers you services such as loans, budgeting tips, a free credit report and the opportunity to invest. The MoneyLion Plus version comes with a monthly fee of $79, which seems steep initially, but some of this is placed into an investment fund, and it’s also possible to claim back the remainder by logging into the app every day. You get also access to low interest rate loans. MoneyLion regular version is free but is much more limited in terms of features- check out MoneyLion reviews here.
If you’re a Dasher and you use DoorDash DailyPay or one of the other budgeting apps mentioned here, let us know how you’re finding it by commenting below.