Australia’s Wagepay nets $10m early access to earned wages

Australia-based Wagepay, which gives employees real-time access to a portion of their earned wages, has reportedly collected $10m in funding.

The investment capital was supplied by FC Capital, an Australian asset manager, according to a report from Australian FinTech. Other unnamed institutional investors supported the round.

With the capital, Wagepay plans to increase its capabilities and help more people get early access to wages.

Prior to this investment, Wagepay was completely bootstrapped.

Founded in 2020, Wagepay helps employees get real-time access to a portion of their earned wages. A user can sign up within three minutes and can get up to 25% of their pay early, up to a maximum of $2,000.

It claims that it was the first company to launch risk-tiered pricing in 2021 to make its services available to more. Its tiered pricing means that selected customers are offered lower rates.

In addition to early wages, Wagepay also offers credit scoring services, as well as a bank score. In the coming months, the FinTech company plans to release budgeting tools that help people better monitor their spending.

In the first 12 months of its app being available, it has registered 240,000 downloads across iOS and Android devices.

FinTech deal activity nearly grinded to a halt in Q3 2022, according to data from FinTech Global. There were only 18 deals during the three-month period, which is a 25% decline on the previous quarter.

Deal activity has dropped for three consecutive quarters, as the country’s FinTech sector goes through a tough year. In 2021, a total of $3.8bn was invested through 205 deals. In the first three quarters of 2022, just $900m has been invested through 92 deals.

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