PayActiv, the US-based provider of an employer-sponsored earned wage access and holistic financial wellness platform, has secured $100 million in funding.
Private equity firm Eldridge led PayActiv’s series C funding round, with participation from existing shareholders Generation Partners and the Ziegler Link•Age Fund II.
PayActiv has also structured an expandable variable funding facility with Security Benefit, a retirement solutions provider.
This combination of growth equity and a variable funding facility provides PayActiv with the capability to 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 four million employees across 1,000+ businesses in retail, food services, business processing services, and 400+ senior living and healthcare businesses. Its clients include Walmart, Wayfair, Ibex Global and many others.
As a standalone ready-to-use mobile app, PayActiv provides the funds for earned wage access.
Users can access their cash through direct pickup, the 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.
“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.”