US-based earned wage access platform Tapcheck has raised $20 million in a Series A funding round led by PeakSpan Capital.
The fintech, which aims to boost employees’ financial wellness through on-demand pay, says the funding will be used “to further its mission to improve business performance by empowering employees with financial wellness”.
Tapcheck CEO Ron Gaver says: “We’ve always believed that businesses could benefit when their employees’ financial well-being was taken care of — something we saw first-hand in other businesses we founded and worked at.”
Tapcheck, founded in 2019, says cash advances relieve the stress that usually comes with living paycheck to paycheck — a reality for 61% of the U.S. population. In the past year, the business claims to have grown revenue 10x year over year.
“The fallout from the pandemic has only accelerated the need for Tapcheck,” adds Kayling Gaver, COO and co-founder of Tapcheck. “It’s incredibly gratifying to be able to help workers and their families make it through unforeseen challenges and gain more financial flexibility and confidence, while helping employers retain great people.”
Tapcheck integrates with over 100 systems including ADP, Paychex, Paylocity. After connecting to an employer’s existing payroll system, Tapcheck uses up-to-date payroll profile information to estimate an employee’s net earnings, to which employees then have access.