PayActiv raises $100 million in VC funding to expand wage-access products
PayActiv, an earned wage access provider, has secured $100 million in a new funding it will use to accelerate its growth.
The Series C funding round was led by Eldridge with participation from existing shareholders Generation Partners and Ziegler LinkAge Fund II, PayActiv said Thursday. The earned wage access market has expanded as more consumers try to improve liquidity during the financial crisis.
PayActiv also said it’s created a new way for employers to offer workers early access to their wages with no effect on the employer’s balance sheet.
Through a structured financing vehicle, described as an expandable variable funding facility with security benefit, employers can more easily advance employee wages in real time, the release said.
“The future of pay is not a two-week cycle," Todd Boehly, Eldridge’s co-founder, chairman and CEO, said in a press release.
PayActiv, founded in 2014, serves about 4 million workers at more than 1,000 businesses, including some employers in Australia and Brazil. The San Jose, Calif.-based company recently said it’s expanding operations in the Philippines.