Finance Breaking news PayActiv secures $100 million in funding last financial news
Breaking-Finance.Com - PayActiv, Inc., the leading employer-sponsored earned wage access and holistic financial wellness platform, today announced that it has secured $100 million of funding to further its mission of bringing security, dignity and savings to workers.
Breaking-Finance.Com - 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.
. In addition, 58% of workers have seen their expenses increase during this time.Employers have found that when PayActiv’s technology is implemented into their payment services, on average they have shown reduced turnover of their workforce by 25% to 31%. This correlation has led to new business partnerships with ADP and Paychex, among others.“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.A certified B Corp and Public Benefit Company, 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.
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