Ceridian has announced the Canadian launch of Dayforce Wallet, a pay solution that gives employees on-demand access to their earned wages without any fee for either employer or employee.
Dayforce Wallet is an extension of Dayforce, Ceridian’s flagship cloud human capital management platform, which continuously calculates employees’ earned wages net of taxes and deductions. Each on-demand pay request is processed as a compliant payroll, with the appropriate payslip and tax remittances. Dayforce Wallet combines a digital wallet with a Dayforce Prepaid Mastercard to facilitate on-demand payments access for employees.
“The pay solution comes bundled, free of charge, for employers using Dayforce Payroll. For the employee, there are no monthly fees, no monthly minimums, no fees to access pay early or to use in-network ATMs, and neither to transfer money to other financial institutions. Fees are charged only if an employee makes withdrawals outside our ATM network,” Seth Ross, general manager, Dayforce Wallet and Consumer Services, Ceridian, told IT World Canada. “The model introduced with the Dayforce Wallet allows Ceridian to generate revenue off the usage of the Dayforce Prepaid Mastercard through merchant interchange.”
The launch comes on the heels of a new online survey of 3,014 randomly selected Canadian adults (of whom 1,633 are employed), conducted by Toronto-based data services firm Maru/Blue on behalf of Ceridian, that found one-third of employed Canadians across income levels – including those earning over $100K – run out of money between pay periods. This highlighted the need to grant employees early access to their earned wages. Forty-three per cent of respondents said they would be either extremely or somewhat likely to consider an employer that provides access to earned wages on-demand over an employer that does not.
“For far too long, we’ve been paying employees in arrears, using outdated payroll technology that hasn’t evolved with the modern workforce. This long-standing precedent places employees on their back foot financially, and in today’s climate, leads many Canadians to rely on high-interest lending options between pay periods,” said Ross. “With Dayforce Wallet, employers are transforming payroll for the better by offering a new employee pay experience that supports financial wellness and pays their people at the pace of real life. We are turning employee payroll into a strategic advantage for our clients.”
Following its availability in the U.S. and Canada, Ceridian plans to launch Dayforce Wallet in the U.K. and Australia. Over time, the global human capital management software company expects Dayforce Wallet to be a key part of its model in most of the countries it operates, according to Ross.