CNBC @ WORK Companies offer cash-strapped employees daily pay cards and other flex-pay options as a lifeline

Key Points:

The shift from paper checks and direct deposit to newer, more flexible electronic payments such as payroll cards, PayPal, DailyPay and others has been unfurling for years.

Now the pandemic may well push these newer payment arrangements to the forefront.

DailyPay, which allows workers to take out pay they’ve already earned whenever they need it instead of waiting weeks for their next payday, saw a 400% jump in use between March 14 and March 17.

DailyPay, which allows workers to take out pay they’ve already earned whenever they need it instead of waiting weeks for their next payday, saw a 400% jump in use between March 14 and March 17 as workers rushed to access their money early to stock up on food, cleaning supplies, wipes and other products before shelter-in-place rules took effect.

If everyone is waiting until the 15th to 30th, everyone is going at the same time to the store and a lot is sold out

said Jeanniey Mullen, chief innovation officer at DailyPay. Mullen said that starting earlier this month, the No. 1 reason for withdrawals has been related to COVID-19, whereas transportation costs — money for gas to get to work, bus fees or Uber — are the primary reason. The company, which typically charges a $2.99 fee for employees to get access to their pay immediately, or $1.99 for the next business day, has waived next-day fees amid the crisis.