Wagestream, a financial super app for waged workers, transforms how workers receive their pay. Recently, the company announced a $175 million funding round after surpassing 1 million users, with plans to double down on the US market.
Let’s examine Wagestream’s mission, how the app works, and how it is helping to revolutionize how workers receive their wages.
Background of Wagestream
Wagestream is a fintech startup based in the U.K. that offers a financial app designed to help individuals living paycheck-to-paycheck better manage their finances. The company was founded in 2016 and is headquartered in London, with offices in London, New York and Madrid.
Unlike traditional banks or financial apps, Wagestream offers a unique way to access wages weekly instead of waiting to be paid on payday. This pay advance service provides financial relief by providing instant access to hard-earned wages already earned but not yet paid . The app also provides users with financial tools such as budgeting and savings advice and tips tailored for those dealing with chronic income pressure.
The company recently announced the closing of $175 million Series D funding, passing 1 million users globally and doubling down on their commitment for the U.S market launch in 2021. With this investment round, Wagestream aims to scale its technological capabilities, expand into new markets worldwide, and partner with employers across multiple industries to bring its innovative wage platform to workers worldwide.
Wagestream, a financial super app for waged workers, raises $175M, passes 1M users and doubles down on the U.S.
Wagestream, a financial super app for waged workers, has recently announced that it has raised $175M, as part of its series B funding round. With this sizable investment, Wagestream aims to fuel its rapid growth and further expand its operations in the U.S..
This amount is the highest ever raised by a European fintech focused on wages. With the funds, Wagestream plans to further develop its product features and expand its presence in the U.S. market.
Investors
Wagestream, a financial super app for waged workers, recently raised $175 million in a funding round. Participating investors included Kakao, SPDB International and DN Capital. This new upround comes just two months after the company raised an additional round of financing from existing backers Rhett Wise and Thrive Capital, bringing the total money raised since June 2020 to $185M.
The international fintech sector is booming due to Covid-19. Wagestream is taking advantage of this trend through its wage-on-demand products that allow individuals to access their wages early without taking out loans or incurring other costs. The company also recently passed 1M users and is doubling down on expanding into the U.S.
The funds will fuel expansion across global markets, accelerate product development and add new talent to help build its technology stack. This includes enabling workers lives by offering budgeting tools, savings accounts, health benefits support, credit scoring and more to become an all-inclusive financial ecosystem for waged employees worldwide.
Use of Funds
Wagestream, a financial super app for waged workers, recently raised $175M to fuel its mission to bring financial freedom and well-being to everyone. With over 1 million users across Europe and the U.S., this new funding will enable the company to continue its mission of using technology and data-driven insights to provide an accessible range of services which help bridge the gap between traditional banking and cutting-edge payment services.
The new capital raise provides a platform for Wagestream’s ambitious plans to accelerate its growth in the U.S., including increasing the availability of payday loan options, expanding banking service offerings such as bank transfers, budgeting tools and international payments, and making affordable financial products available to even more people across America.
The funds also strengthen Wagestream’s already well-secured financial position; core operations are powered by ACH integration with banks providing safeguards against fraud, money laundering or terrorism financing activities through real-time monitoring and AI-driven risk analysis; while customer deposits are held in different institutions operated by Citi Group entities in secure fiduciary accounts.
In addition, the funding allows for further investment into data science technologies including sophisticated algorithmic models that monitor user trends such as creditworthiness on an individual level while helping inform wider industry trends. With this data, Wagestream can provide a better understanding of how users make decisions regarding their finances.
Passing 1M Users
Wagestream, a financial super app for waged workers, has recently announced its success in passing 1M users. This milestone comes after the raising of $175M, which has allowed the platform to double down on their presence in the U.S. market.
The platform offers a range of features that provide a financial safety net, enabling workforce members to access their earned wages in real-time. With this recent news, let’s look into and explore some of the platform’s existing features and how this new expansion will add to their service offerings.
Growth Drivers
Wagestream, a financial super app for waged workers, has experienced rapid growth as international demand for its unique approach to personal financial management continues to surge. Over one million users worldwide have benefited from Wagestream’s services by providing flexible access to salaries, budgeting tools, and budget tracking. This expansion was recently boosted by a $175M series A financing round from investors such as Visa, Canada Pension Plan Investment Board, CreditEase and Stripe Ventures.
The company’s continued success can be attributed to several key factors: its ability to bring together offerings from big banks and fintech companies in a single unified platform; its support of an open API structure allowing more flexible integration of third party services; and its leadership dedicated to marriageing technology with insights into user behaviour that drives the product experience.
Moreover, Wagestream’s impressive suite of capabilities enables users to customize their financial options based on their circumstances while improving clarity and control over finances through data insights. In addition, the company has also recently announced plans to expand into new markets including the U.S., where it will strive for greater customer adoption of its services by further leveraging store partnerships amongst national retailers and deeper push towards engaging employers across multiple states.
Doubling Down on the US
Wagestream, a financial super app for waged workers, recently raised $175M in funding and has passed 1M users. With a strong presence in the UK, the company has decided to double down on the US market.
Through Wagestream, users can now access their earned wages in real-time on a daily or weekly basis rather than waiting for the next payday.
Let’s dive into what their US expansion will look like.
Expansion Plans
Wagestream, a financial super app for waged workers, recently raised $175 million in a Series B round of funding. This injection of funds comes on the heels of Mogul’s announcement that Wagestream had passed 1 million users, with over 6 million using their services across Europe since 2018.
With the recent funding, Wagestream intends to double down on its expansion plans with US being its primary focus. The company plans to use the funds to build out its technologies and expand into new markets within America. It is also looking to hire highly-skilled personnel and acquire strategic partners who can help it better understand the local nuances of different markets around the U.S.
In addition to official launch plans in retail stores and online, Wagestream has announced plans to introduce an open banking platform enabling operators to connect their systems directly with financial institutions through APIs (Application Programming Interfaces). This further helps users get paid quickly when they need it most, thereby ensuring financial stability amidst unpredictability and a streamlined user experience.
In light of this fresh round of funding, Wagestream’s CEO Peter Briffett said: “We are driven by our belief that everyone should have access to their pay when they need it, without requiring them to take on expensive debt or costly fees… we now have improved access points for the underbanked population in many U.S states along with full international coverage for our customers worldwide”.
The company’s mission is clear — enhance financial security for working people — and these expansion strategies aim strongly in that direction!
Benefits for US users
Wagestream, a financial super app for waged workers, recently secured $175 million in funding to expand its operations. This brings the company’s total funding to over $225 million and its user base to over one million. The company is now focusing on increasing access to its platform for users in the United States.
The US market for wage-based finance solutions is growing, representing a unique opportunity for Wagestream. The company has already gained traction with users in the UK and a few European markets. Still, its recent push into the US shows it is serious about taking a dominant position in this industry.
With Wagestream’s launch in the US comes several benefits specially designed with American wage earners in mind. In addition to allowing users to manage their finances from any device through one secure account, Wagestream offers innovative features like “Get Money Now” which allows users to access up to 50% of their earned wages before payday with no interest or penalty fees. Furthermore, by utilizing “Paycheck Eligibility Checks”, users are also given insight into which specific payments may be eligible for early access before starting the process.
In line with their commitment to helping workers advance financially, Wagestream also gives customers insights into their real-time spending habits by providing clear summaries of total earnings paid year-to-date and projected future earnings after regular deductions and payroll dates. Furthermore, customers have access 24/7 customer service support no matter their location or time zone which helps ensure they get timely responses or help when needed most.
Wagestream’s mission is clear: building financial wellbeing one paycheck at a time — explained Steve Sumariwalla, CEO & Co-Founder at Wagestrean — no one should struggle just because they don’t get paid often enough. So we designed our products around our values of financial transparency and responsible saving so everyone can stay ahead of surprises and build wealth over time.”
Conclusion
Wagestream has seen tremendous success with their financial super app, having raised $175M, passed 1M users and doubling down on the U.S. market. This marks a major milestone for the company and confirms that their innovative product has the potential to reach a significant, world-wide audience.
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