Jan 31 (Reuters) - DailyPay, a financial services firm

that helps workers access their pay early, has kicked off

preparations for a potential U.S. stock market listing that

could come as soon as the second half of the year, according to

people familiar with the matter.

The New York-based company is in talks to hire investment

bankers for its planned initial public offering that could value

the company between $3 billion and $4 billion, the sources said.

The sources, who requested anonymity as the discussions are

confidential, cautioned that DailyPay's IPO plans are subject to

market conditions and have not been finalized.

DailyPay declined comment.

DailyPay's plans to go public come as a handful of big names

in the financial services industry, including Chime and Klarna,

are preparing for stock market launches later this year on an

improved outlook for equity capital markets.

Founded by fintech entrepreneurs Jason Lee and Rob Law in

2015, DailyPay operates a digital wallet that lets workers

access their wages as they earn them, instead of having to wait

for paychecks on a fixed date. DailyPay, which charges its

customers a small fee for the service, counts the likes of

Target ( TGT ), Kroger ( KR ) and Hilton among its

clients.

DailyPay's other offerings include a suite of financial

wellness products, as well as tools that help reduce employee

turnover and boost worker productivity, according to its

website.

The financial services startup was last valued at $1.75

billion in January 2024, when it raised $75 million from

investors led by Carrick Capital Partners. Boutique investment

bank FT Partners advised DailyPay at the time.

Earlier in January, DailyPay hired former Uber Chief

Financial Officer Nelson Chai as its executive chair. Chai

helped take the ride-hailing giant public in 2019.