Wagestream, a financial wellbeing app focused on frontline workers, has raised £17.5 million (approximately $21.8 million) in a funding round.
The total includes a £7 million (approximately $8.7 million) investment by British Patient Capital, along with other co-investors including Lombard Odier Investment Managers and existing investor Northzone. said British Patient Capital in a press release on Wednesday (April 17).
“We believe frontline workers deserve essential services and a better economic future,” said Peter Briffett, co-founder and CEO of Wagestream. he said in a release. “Over 1,000 employers agree. We are a platform that helps people with every part of their financial life, from paying off debt to saving for the first time, building their credit file and planning for the future. We will work together to bridge the gap.”
According to a release, Wagestream was founded in 2018 and its platform is currently available through 1,000 employers in the UK, Spain and the US, including Asda, Bupa, Burger King, Hilton and the National Health Service (NHS). .
This will enable 3 million employees (mainly shift workers and field workers) to access interactive payslips, choose when to get paid, save and receive debt advice. It is stated in.
With this funding, Wagestream will continue to expand its services with the aim of becoming a “complete financial platform” for low- and moderate-income workers, according to a release. This year, the company plans to add credit builder cards, shopping discounts, loans, and artificial intelligence (AI)-powered financial coaching.
Tom Heywood, investment director at British Patient Capital, said in a release: “Financial products for high-income earners and underserved shift workers who need equally essential services. “Fintech innovation is needed to address the challenge of inequity between consumer goods and products for frontline workers.” “Not only is the company a rapidly growing business, but it also provides an important service to a critical and underserved group of workers.”
Wagestream’s on-demand wage offering quickly proved valuable to UK workers. In the UK, 85% of employees are paid a monthly salary. Briffett told his PYMNTS in an interview published in May 2019.
“That’s probably because payroll is expensive and administrative-intensive, and from an employer’s perspective, the fewer payroll runs, the better,” Briffett says. “But that tends not to be helpful to employees.”
