Wagestream raises £ 15million as it battles payday lenders

Digital bank

Existing London-based fintech funders include the Joseph Rowntree Foundation, Bill Gates and Jeff Bezos.

Image source: corporate image

Wagestream has secured £ 15million in funding to roll out its worker payment service, which fintech says could put payday lenders out of business.

The London-based start-up brought liquidity from venture capitalists Northzone as well as Balderton, who was an early investor in digital bank Revolut and online investment manager Nutmeg.

Wagestream offers a “pay as you earn” service to workers, allowing them to withdraw their earned wages in real time, rather than waiting until the end of the month.

The company said it was “on a mission to end working poverty, eradicate payday lending and destroy the” poverty premium, “where low-income people pay more for a range of products and services. essential services such as insurance, energy and credit. ”.

The company, founded in 2018, said its service is currently used by more than 120,000 employees at companies such as David Lloyd, Rentokil, Camden Town Brewery, Slug & Lettuce and Carluccio’s.

The start-up has attracted a total investment of £ 40million, with existing backers such as the Joseph Rowntree Foundation and Village Global – a venture capital fund backed by Microsoft’s Bill Gates and Amazon’s Jeff Bezos .

Wagestream chief executive and co-founder Peter Briffett (pictured) said: “The archaic monthly pay cycle is inflicting enormous financial damage on household finances and its days are numbered. Too many people are pushed into a corner by working poverty and forced into the hands of high cost payday and credit lenders. “

Balderton Capital partner Rob Moffat added, “Companies were playing an active role in supporting the financial health of their users, but that slowly eroded, as employees paid at the end of the month. actually subsidize their employer for 29 days. a month. Wagestream is starting to restore the right balance. “

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