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The End of PayDay and Shifting Compensation Expectations

Oliver Babini - Dey
Founder and CEO

STORY INLINE POST

Cinthya Alaniz Salazar By Cinthya Alaniz Salazar | Journalist & Industry Analyst - Fri, 01/06/2023 - 10:00

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Q: How does Dey’s commercial proposition balance B2B and B2C interests?

A: Dey is an ally to companies, offering a critical financial service to their associates. This, in turn, has a ripple effect on their individual financial health and workplace productivity. Moreover, Dey offers companies the software to seamlessly transform and evolve the way they manage their payroll and benefits. 

On the other hand, Dey offers associates the peace of mind of being able to instantly liquidate their daily generated income without depending on the authorization of their employers or HR departments. On top of this, associates have the ability to leverage their income through three technology mediums, including Dey’s card, app and service marketplace. 

Altogether, Dey extends companies the capacity to offer their collaborators a competitive compensation package in line with evolving labor expectations and personal interests at no risk to themselves, potentially augmenting loyalty, financial well-being and productivity. 

 

Q: How does Dey differentiate itself from other salary-on-demand companies in Mexico?

A: Mexico’s salary-on-demand financial market is estimated to include over 40 million people and would benefit significantly from a government established norm to generate greater traction. Nevertheless, despite the absence of a supportive regulatory landscape, Dey is proud to be the only regulated digital native salary-on-demand startup in the country. As such, our onboarding process can take as little as two hours but, if required, we can accompany businesses through a personalized process. Altogether, Dey’s strategic composition has allowed the company to evolve alongside the market as salary-on-demand gains greater momentum. 

 

Q: How does Dey facilitate companies' NOM-035 compliance? 

A: Although our service is not formally recognized by the STPS, our financial services effectively checkoff prerequisites outlined by NOM-035, which makes obtaining a compliance certification easier. Dey’s services support collaborators’ emotional salary and stability, effectively reducing workplace stress. 

 

Q: What is the importance of salary-on-demand ahead of an economic downturn for consumers and businesses alike?

A: Salary-on-demand is important irrespective of the macroeconomic health of a country’s economy because its need is based on the personal financial situation of each individual. Nevertheless, salary-on-demand tools like Dey can play an essential role in providing collaborators with a security blanket they could potentially need at a time when the market is likely to be characterized by low liquidity. This is especially relevant to companies that normally provide their associates with loan services and may find it difficult to continue providing this service in the months ahead as their cash flow shrinks. By partnering with Dey, companies can keep their revenue inflow intact, while associates are not left vulnerable to the company’s capacity to provide them with loans. Instead, associates can access their generated income on demand at a fixed commission rate instead of recurring to bank loans with an interest rate currently standing at 9.25 percent. 

Moreover, in the worst case of a potential layoff, Dey is prepared to extend associates a 30-day credit line so they can meet their basic needs as they look for another employment option. We are confident that they will utilize this service responsibility because it is an emergency lifeline that not many users are willing to burn on a one-time use. 

 

Q: How has Dey’s service impacted local economies?

A: Dey was conceived from a vision of social impact. Our commitment extends beyond our clients; we are dedicated to providing added-value to local communities through the nullification of the payday concept. We are doing away with the dependency on the 15th and 30th of every month, allowing employees to generate cash flow. This transformation is being spearheaded by current Dey users, who are already leveraging their income to make purchases before payment periods. As consumer awareness and confidence grows in our product, we are confident that our overall impact will have a positive reverberating effect on local economies and beyond.

While this tool should be accompanied by some form of easily accessible financial education, our data suggests that users are not spending beyond their means and consume only what they need. 

 

Q: Does Dey have fundraising ambitions in 2023 and what does the ideal investor look like for Dey? 

A: Our projections indicate that we have the potential to reach 100,000 new users. We are set to fundraise in late January in Bogota, Colombia, where we aim to raise US$2 million. An ideal investment partner would see the importance of digitizing HR processes, recognize the added-value of our social impact mission, have ESG expectations and have experience in working with Latin American startups. 

 

Dey, a salary-on-demand SOFOM, allows employees to access 100 percent of their accrued salary as needed at no cost or risk for employers.

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