DailyPay Will Offer $200 Million in Asset-Backed Securities

The company expects the transaction to close on October 7, 2026, featuring four tranches of notes.

Updated on Oct. 1, 2026 in Investing

Isometric editorial illustration of a stack of metallic structural slabs, representing a complex financial securitization transaction. — DailyPay has announced a $200 million asset-backed securities transaction, with the deal expected to reach completion on October 7, 2026. AI Illustration. Upload story photo >

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DailyPay is set to launch an asset-backed securities transaction valued at $200 million. The deal is expected to close on October 7, 2026, and is structured as a Rule 144A transaction.

Why it matters

The securitization trust supports DailyPay's ongoing operations by utilizing a two-year revolving period for eligible receivables. The transaction includes specific financial safeguards, including a reserve account balance of at least 0.75% and $12 million in initial overcollateralization.

The notes are divided into four tranches with ratings ranging from (P) AA (sf) to (P) BBB (sf) assigned by Morningstar DBRS. Initial overcollateralization for the offering is set at $12 million, representing approximately 6.00% of the initial note balance.

The players

DailyPay

DailyPay is a financial technology company that provides earned wage access services to employees.

Morningstar DBRS

Morningstar DBRS is a global credit rating agency that provides independent research and opinions on debt securities.

The details

Citigroup Global Markets, Barclays Capital, and BofA Securities are serving as joint lead bookrunners for the transaction. The trust includes a revolving period allowing for the inclusion of varied receivables, provided that pre-settlement receivables do not exceed 15% of the total pool.

The securitization transaction is expected to close on October 7, 2026.
The notes reach their legal final maturity date on October 25, 2029.

Market Dynamics

This transaction aligns with the broader trend of non-bank financial institutions tapping into capital markets to fund short-term credit products. It reflects the increasing reliance on asset-backed securities to manage liquidity within the growing earned wage access industry.

This offering is structured for institutional investors rather than individual retail buyers, meaning there is no direct impact on personal 401(k) allocations. However, it signals the continued scale and maturation of companies providing wage access technology in the financial sector.

The takeaway

The issuance of these securities allows DailyPay to secure long-term capital for its credit-based services through professional debt markets. Investors are increasingly looking to such structures to gain exposure to the underlying performance of consumer-focused financial technology receivables.