NEW YORK -As part of a consumer financing program supported by an FDIC-insured bank, Clair, a mission-driven fintech startup, announced it had raised USD 175 million in funding. Clair will use the money to develop the first free, user-friendly on-demand pay solution. The new program permits front-line employees to get wage advances from Pathward with a participation value of up to USD 150 million. Customers can access Pathward’s FDIC-insured Clair Spending and Savings Accounts through the agreement, along with additional financial services. The funding round, which Thrive Capital led, also included an additional USD 25 million in equity. The equity round also included participation from Upfront Ventures and Kairos, increasing Clair’s total venture capital funding to USD 45 million.
Clair will utilize the new financing to grow its team and speed up adoption, especially among the 76 million hourly employees who make up 56% of the U.S. population and have seen a 10x increase in income over the past year. When I Work, Gusto Embedded and 7shifts are just a few of the platforms that Clair has integrated with. These platforms let workers get paid after their shifts rather than waiting weeks for a cheque. Most of Clair’s millennial and Gen Z clients may avoid utilizing payday lenders, which can have APRs as high as 600%, and $15 million in annual overdraft fees by using the company’s award-winning mobile banking app.
With 4 million more job opportunities than workers to fill them, small and large firms have embraced this option to recruit and retain workers in the face of the front-line worker shortage. EverView, Viking Ranges, SanStone Health & Rehabilitation, along with franchisees of DoubleTree by Hilton, Sheraton Hotels & Resorts, and GNC, are among the businesses that use Clair to give earned wage advances to workers. This potent tool might give businesses a competitive edge in luring and keeping talent despite the labor crisis.
Additionally, Clair announced the introduction of Clair for Employers, a package of complimentary, all-encompassing financial wellness benefits for staff members of companies that are not on Clair’s partner platforms. Human resources teams typically spend much time and money implementing and managing on-demand pay benefits, while Clair for Employers integrates with businesses’ payroll providers without cost. The integration is entirely compliant and does not need continuing maintenance. Additionally, employees of companies utilizing Clair for Employers have access to extra features in their Clair Spending Account, such as 3% cash back on groceries and petrol bought with their Clair Debit Mastercard®.
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