Doreming: The 'daily pay' firm putting an end to payday loans.
Many of us struggle to make ends meet by the end of the month, and for millions around the world, this harsh reality leads to a destructive spiral of payday loans and crippling interest rates.
Luckily, the up-and-coming finance firm Doreming is making ‘pay day’ every day – giving you access to a small chunk of your salary each day of the week.
“We want hard working workers to be treated fairly,” CEO Masahiro Takasaki told The Memo.
“The future of finance is socially responsible.”
Founded in 2015, Doreming was created after Takasaki’s father Yoshikazu (a CEO at a blue-collar payroll firm in Japan), decided to launch his own business called myKyu.
This was a real-time salary transfer system to help ‘Internet Cafe Refugees’ in Japan – temporary workers who lost their homes and permanent jobs around 2008 when Lehman Brothers collapsed and started living in internet cafes.
The team went on to develop Doreming to allow these ‘unbanked’ and ‘underbanked’ workers early access to their wages at the end of the day. It’s a system that’s now been adopted across Japan.
“We provide employers with a real-time payroll system that calculates wages and taxes as soon as employees clock out [allowing] employees to tap into their accrued wages through mobile banking,” explains Takasaki.
To use Doreming, employees simply clock in and out as usual. After work, they use the Doreming app to buy items in shops with the wages they have earned (or accrued) so far. (You can make payments from the app by NFC card terminal, QR code – POS system, or SMS text).
This system isn’t just good for cash-strapped staff, it’s actually better for bosses too, says Takasaki.
“Using Doreming, employers can increase employee loyalty, promote hiring and retain people,” says Takasaki.
“For workers, we want them to feel safe. Going into a poverty spiral is very scary and climbing out needs a lot of courage. Safety can be provided through care and social responsibility from employers.”
From a user perspective, the money you use might appear to be your salary ‘come early’. Technically however, it’s an “interest-free loan” from the retailers you shops with, and they get paid by your boss at the end of each month.
Doreming charges merchants a small fee at the point of sale (like credit cards do), but Takasaki says shops remain keen to accept the app to “promote” their goods and encourage shoppers in to their premises.
The new-age salary service will also makes money through in-app advertising, and smart use of collected data, says Takasaki:
“In the long run, we think that employee payment data, associated with company HR and payroll data will give us a tremendous business opportunity,” he explains.
The company’s also already made a splash onto KPMG’s FinTech100, attracted angel investment, and secured a “strong banking partner”.
Now, Takasaki is busy planning an investment round to support new offices in Singapore and India, later this year, in order to further develop Doreming for a global market.
As the end of the month draws to a close, pay day once again seems a long way off.
But tell yourself this as you walk out the door tonight:
It could only be a matter of time before every day is pay day.