PayActiv, the leading employer-sponsored earned wage access and holistic financial wellness platform, announced that it has secured $100 million of funding to further its mission of bringing security, dignity and savings to workers.
The Series C financing round was led by Eldridge and includes existing PayActiv shareholders Generation Partners and the Ziegler Link Age Fund II. PayActiv has also structured an expandable variable funding facility (VF Facility) with Security Benefit, a leading retirement solutions provider.
The powerful combination of growth equity and VF Facility financing provides PayActiv the capability to rapidly expand its customer base, while supporting current clients with cost-free financial wellness benefits that improve employee engagement and retention.
PayActiv currently serves more than 4 million employees at over 1,000 businesses across retail, food services, business processing services, and over 400 senior living and healthcare businesses. Its clients include Walmart, Wayfair, Ibex Global and many others.
“American families are facing more financial stress than they have in generations,” said Safwan Shah, CEO and Co-Founder of PayActiv. “The timing gap between work and wages is the main reason workers get hit with punitive late fees, overdraft fees and other penalties. Cumulatively, these fees reduce wages by seven percent every month. The PayActiv platform is the only system where everyone wins: employers lift worker morale with little to no cost and huge dividends; employees get wages when they actually need them most; and cash re-enters the economy faster, making communities financially healthier.”
“The future of pay is not a two-week cycle,” said Todd Boehly, Co-founder, Chairman, and Chief Executive Officer of Eldridge. “By simply giving people access to their wages as they earn them, PayActiv increases the velocity of money, stimulating the economy and serving employers and employees by driving costs down and efficiencies up.”
As a standalone ready-to-use mobile app, PayActiv provides the funds for earned wage access. According to PayActiv’s research, the average American worker can save $250 every month by tapping into earned wages and avoiding the fees associated with alternative financing sources.
PayActiv offers industry-leading flexibility in how users access their cash, including through direct cash pickup, PayActiv prepaid card, instant Visa or Mastercard debit card load, ACH payment, or by using wages to pay bills, make purchases on Amazon, or purchase rides on Uber. The company also provides its users with a range of financial wellness and planning tools backed by AI and machine learning that enable customers to save, budget and more efficiently manage their money.
–AN
HrNxt.com Newsdesk has researchers and writers with an excellent domain knowledge about the talent ecosystem, and the business environment. The team keeps a tab on the latest happenings in the ecosystem to bring most relevant news and insights for our readers. You can connect with our newsdesk at newsdesk@hrnxt.com.