![]() ![]() financial system by providing them with an individual tax identification number (ITIN) and banking services. On June 28, I wrote about Maza, a fintech company claiming to help undocumented immigrants gain access to the U.S. Chamber of Commerce recently reported that industries, including healthcare, accommodation and food, continue to have a high number of job openings, so we’re likely to see the need for employee benefits like these also grow. By convincing a bank to do this, it gives regulatory certainty to our partners and consumers because there is a national bank backing it.”Ĭlair is already working with 10,000 employers however, the U.S. “Most early-stage, on-demand pay companies are the ones advancing the funds. “We’re the first provider that went to a bank and convinced the bank to do those advances, basically as micro loans, $50 loans,” Simko said. What makes Clair more compelling than its competitors, explains co-founder and CEO Nico Simko, is that rather than take on the wage advance risk itself, Pathward does that. The company also announced $150 million as part of a new consumer lending program from partner bank Pathward, which holds the FDIC-insured accounts for Clair and provides the wage advances to frontline workers. The latest is Clair, which raised $25 million in equity funding for its approach to helping workers get paid after completing a shift. ![]() More recently, we’ve seen startups attracting some solid VC funding for on-demand pay offerings for workers: Rain, DailyPay and Minu to name a few. Much of the early solutions focused on productivity and communication - consider Flip, Blink, AskNicely, Salt Labs and Snapshift. ![]() This ignited the tech sector - and subsequently the venture capital market - to build modern solutions to help employers give their employees the best experience possible and improve retention. The global pandemic shed a light on these workers when their fatigue and burnout resulted in “ The Great Resignation” of hundreds of thousands of workers who left their jobs after feeling disrespected by employers and customers, as well as feeling they weren’t making enough money, according to a Pew Research study. Some 82% of people are considered frontline workers who work on shifts and are likely paid hourly. But there was still plenty to talk about, including Clair’s raise, some allegations against Deel and exclusive post-SVB growth numbers shared by banking services startup Mercury. It was a short week and that was reflected in the amount of news we covered in fintech land last week. ![]()
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