PayActiv raises $100 million

PayActiv, the employer-sponsored earned wage access and “holistic financial wellness platform,” has secured $100 million in Series C round led by Eldridge, with participation from existing PayActiv shareholders Generation Partners and the Ziegler Link•Age Fund II. PayActiv also structured an expandable variable funding facility with Security Benefit, a retirement solutions provider.

Founded in 2012, California-based PayActiv enables employees to access their earned wages on-demand. The company currently serves more than 4 million employees at over 1,000 businesses across retail, food services, business processing services, and over 400 senior living and healthcare businesses. Clients include Walmart, Wayfair, Ibex Global and others, and the company claims that employers see reduced turnover of their workforce when implementing the service.

“American families are facing more financial stress than they have in generations. The timing gap between work and wages is the main reason workers get hit with punitive late fees, overdraft fees and other penalties. Cumulatively, these fees reduce wages by seven percent every month. The PayActiv platform is the only system where everyone wins: employers lift worker morale with little to no cost and huge dividends; employees get wages when they actually need them most; and cash re-enters the economy faster, making communities financially healthier.” – Safwan Shah, CEO and cofounder of PayActiv.

“The future of pay is not a two-week cycle. 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.” – Todd Boehly, cofounder, chairman, and CEO of Eldridge.