Wages-on-demand startup ZayZoon raises $15m
Wages-on-demand startup ZayZoon raises $15m
ZayZoon, the leading provider of Wages On- Demand and employee financial payroll features, announced today that it has raised $15 million, led by a consortium of institutional and private capital providers.
ZayZoon was founded with the mission of improving the financial and emotional health of workers by providing socially responsible financial products. They began this mission by pioneering Wages On-Demand as a payroll feature. This service is available to more than 2 million employees throughout North America and this number is growing as employers increasingly recognize that they can improve workplace wellbeing and employee productivity by assisting their employees in mitigating financial stress. With this latest round of financing, ZayZoon will continue the development of its financial wellness platform and employee benefits programs to better service the employers and employees who count on ZayZoon each and every day.
“Our capital providers have chosen to invest in ZayZoon because they see the positive impacts we are making on the financial well-being of employees across North America and the passion we have for building an exceptional business,” said Darcy Tuer, Co-Founder and CEO of ZayZoon.
One of the major contributors of financial insecurity is the disconnect between the timing of receipt of wages and settlements and employees’ ongoing expenses. In a recent study by PEW Charitable Trusts, 92% of respondents said financial stability and predictable income was more important than “moving up the income ladder”. The current reality is income has become less predictable, and income volatility makes individuals more likely to incur overdraft fees which, according to the Consumer Financial Protection Bureau, result in an average transaction fee of $34 for a shortfall of only $24. These individuals may also be pushed to seek out alternative sources of short-term credit to cover cash flow shortfalls. Unfortunately, these alternative sources of short-term credit include payday loans, which are utilized by 12 million Americans annually. As a result, employers are increasingly recognizing that stress is amongst the biggest challenges to workplace wellbeing and employee productivity, and are looking for ways to assist their employees in reducing this stress. ZayZoon was founded to end the cycle of predatory lending and overdraft fees and provides employees with instant access to their earned and accrued wages. ZayZoon’s whitepaper provides further insights on these issues and how Early Wages On-Demand can be part of the solution to protect employees from unnecessary financial stress and save them money.
Tate Hackert, Co-Founder and President of ZayZoon, stated, “We’ve now made our Early Wages service available to more than 2 million employees across North America. Not only are employees experiencing the benefits of reduced financial stress, employers are seeing direct benefits to their bottom line. ZayZoon’s services enhance employee productivity, provides recruitment differentiation and also can offer businesses additional cost savings by way of increased employee retention.”
Founded in 2014, ZayZoon partners and integrates with payroll companies and employers to provide employees a financial wellness platform, with one feature of the platform being access to Early Wages On-Demand. This is important because 78% of American workers live paycheck to paycheck, forcing them into difficult situations between banks that earn over $30B in overdraft fees and predatory lenders that charge upwards of 600% interest. ZayZoon’s Early Wages On-Demand gives employees control over their paycheck, reduces financial stress and prevents the debt spiral caused by use of predatory products.
Forward-looking statements are made as of the date of this press release and ZayZoon disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
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After becoming an ADP Marketplace Partner last year, ZayZoon has built a seamless technical integration that allows any ADP Workforce Now® or RUN Powered by ADP® client to activate on-demand pay for their employees quickly. Both the channel team and client success organization have worked closely with ADP and its clients to help drive positive client experiences and improve employee financial wellness.
HR service providers can now offer their clients an Earned Wage Access solution with no time system requirement and full go-live potential within minutes.