Clair, a US fintech company, has successfully raised $175 million in funding to accelerate the adoption of its earned wage access solution. The funding includes a $25 million venture funding round and an additional $150 million in equity funding. Retail bank Pathward is a major contributor to the funding and will offer FDIC-backed accounts to Clair users through Banking-as-a-Service (BaaS). This will enable users to access their funds instantly. The equity funding comes from investors such as Thrive Capital, Upfront Ventures, and Kairos, bringing Clair's total venture capital funding to $45 million.
Clair's earned wage access solution allows workers to receive same-day advances on their salaries using a mobile banking app. The service aims to prevent workers from resorting to high-interest payday lenders, which often charge exorbitant interest rates. By providing workers with immediate access to their earnings, Clair addresses the needs of the significant number of Americans who live paycheck-to-paycheck and may require microcredit to cover their expenses until their next payday.
Founded in 2019 by Nico Simko, an Argentinian-Swiss immigrant to the US, Clair aims to provide greater pay flexibility for workers outside traditional pay cycles. Unlike other salary advance services, Clair's partnership with Pathward allows users to access additional financial services, including a high-yield savings account and a debit card.
Clair has already helped more than 50,000 workers receive their pay earlier and has experienced significant revenue growth in the past year. With the new funding, the company plans to expand its team and accelerate adoption, particularly targeting the 76 million hourly workers in the US who make up over half of the workforce.
Clair's Co-founder and CEO, Nico Simko, emphasizes the underserved nature of frontline workers and the lack of financial solutions tailored to their needs. He expresses gratitude for the support of investors, partners, and employers who believe in Clair's mission to empower individuals to customize their pay cycles responsibly.
Anthony Sharett, President of Pathward Bank, highlights the shared values between Clair and Pathward and the potential to increase financial access for Americans regardless of economic conditions. Kareem Zaki, a Partner at Thrive Capital, commends Clair for its growth and focus on compliance, delivering tangible value to customers in a challenging labor and economic environment.