PayActiv, a US-based payroll facilitator backed by telecommunications and internet company SoftBank, has raised $9.2m in series A funding from undisclosed investors.
The funding will be used to help PayActiv grow its suite of products. PayActiv’s technology frees up payroll, granting employees access to their earnings throughout the month in return for a nominal fee, rather than requiring them to wait until payday.
Employers using the cloud-based MyMoNow system can reduce the time lag between their employees earning income and gaining access, allowing them up to $500 instantly without penalty charges.
The software can also be used to top up mobile phone payments, pay bills or allocate money towards lending and borrowing requirements. The company claims 80 million US workers struggle for cash flow by the end of the month.
PayActiv raised $4.3m in 2014, according to a regulatory filing. It has not revealed the full details of its earlier funding, but said it was seeded by an early-stage fund affiliated with SoftBank subsidiary SoftBank Capital.
Kabir Misra, managing partner of SoftBank Capital and a PayActiv board member, said: “PayActiv’s business model tackles the root cause of debt spiral among millions of workers across the world, and it is one of the most exciting innovations in the global FinTech space today.”
– Image courtesy of PayActiv