Financial wellness app PayActiv has netted $20m in its Series B round from Generation Partners.
The firm joined earlier round backers Ziegler Link-Age Fund II and affiliate funds of Softbank Capital.
Founded in 2012, the company offers a personal finance app which provides consumers. Tools available include better banking products, savings and budgeting tools, bill payment and financial health measurement. Users can also access discounts, and financial counselling and education to support their financial wellness.
Businesses which partner with PayActiv are able to give their employees real-time access to earned wages, helping to remove the need of pay-day loans or bank overdrafts.
According to PayActiv, it has frown six-fold over the past year. Late last year, the company formed a partnership with Walmart to provide timely earned wage access to over 1.4 million associates.
Earlier this year, the company formed a deal with ADP which sees its services opened up to more than 600,000 businesses across the US.
Through the capital injection, the company will look to expand its platform, accelerate growth and develop new high-impact financial solutions.
Generation Partners managing partner John Hawkins said, “PayActiv has created a massive positive impact on the relationship between employees and employers.
“Already, they are settling more than $100 million in earned wage access transactions each month, and the company estimates that employees are avoiding an estimated $10 million each month in eliminated late charges, overdraft fees and interest charges. At the same time, businesses are reaping the benefits in better employee recruitment and retention. PayActiv is truly “win-win” for employers and employees.”
As part of the deal, Generation Partners managing partner John Hawkins will join the company’s board of directors.
Ziegler Link•Age Fund II John Hopper CIO said, “We look forward to helping this much-needed solution expand within healthcare and our various areas of expertise.”
Copyright © 2018 FinTech Global