DailyPay Will Offer $200 Million in Asset-Backed Notes
The transaction will provide funding for payroll-related receivables with a closing date set for October 7, 2026.
Updated on Oct. 1, 2026 in Investing
Live Poll
Do you trust companies that provide on-demand pay services to remain stable long-term?
DailyPay plans to issue $200 million in asset-backed securities through the DailyPay Securitization Trust 2026-1, with the deal expected to close on October 7, 2026. This transaction marks a significant step in the company's capital strategy for its payroll receivables.
Why it matters
The issuance allows DailyPay to secure liquidity by pooling its receivables into tradeable notes, with credit ratings ranging from (P) AA (sf) to (P) BBB (sf). These financial structures help organizations manage cash flow by converting future income streams into present funding.
The securitization features a total offering of $200 million, supported by an initial overcollateralization of $12 million. A minimum reserve account balance of 0.75% is required to protect the notes, which are expected to reach final maturity by October 25, 2029.
The players
DailyPay
A financial technology firm that provides on-demand pay services and payroll-based liquidity solutions to employees.
Citigroup Global Markets
A global financial institution providing underwriting and brokerage services for institutional investors.
Morningstar DBRS
A credit rating agency that evaluates the risk profiles of corporate debt and securitized financial products.
The details
The notes are structured as a Rule 144A transaction, which creates a two-year revolving period for eligible receivables. Up to 15% of these pooled assets may consist of pre-settlement receivables. Citigroup Global Markets, Barclays Capital, and BofA Securities are serving as joint lead bookrunners for the offering.
Timeline
The securitization transaction is expected to close on October 7, 2026.
The notes reach their legal final maturity date on October 25, 2029.
Money Landscape
The offering follows the standard regulatory framework for private institutional capital raises in the United States. This structure sits within a broader trend of fintech companies utilizing asset-backed securitization to manage growth-related capital requirements.
This transaction does not directly change the service fees or costs for individual users of payroll-advance platforms. Consumers should consult with a financial professional to understand how shifts in company-level capital structures impact the stability of long-term service providers.
The takeaway
This securitization highlights how fintech firms tap into institutional debt markets to support their operating capital. Consumers using on-demand pay apps should prioritize keeping track of their total transaction fees, as these services are often used as short-term liquidity tools.
Further reading
For more on how institutional financial products work, visit Investing.
Source note: This article includes information reported by National Mortgage News.
Live Poll
Do you trust companies that provide on-demand pay services to remain stable long-term?
