Clair raises $175m to launch on-demand pay solution powered by FDIC-insured bank
By Delisha Fernandes
Clair, a FinTech company, announced it raised $175 million to launch an on-demand pay solution as a consumer lending program backed by an FDIC-insured bank.
The new program provides for a participation amount of up to $150 million, which allows front-line workers to take wage advances from Pathward. Through the partnership, consumers can access Pathward’s established FDIC-insured Clair Spending and Savings Accounts, among other financial services.
The company also announced the launch of Clair for Employers, a set of free, holistic financial wellness benefits for employees of businesses that are not on Clair’s partner platforms. Offering an on-demand pay benefit usually means human resources teams must commit significant time and resources to implement and manage it. Still, Clair for Employers integrates seamlessly with companies’ payroll providers for free.
The integration does not require ongoing maintenance and is fully compliant. Employees of companies using Clair for Employers also can access additional features in their Clair Spending Account, including 3% cash back on gas and groceries purchased on their Clair Debit Mastercard.
“Front-line workers are astonishingly underserved, as big banks don’t see them as profit drivers and aren’t building the solutions they need,” said Nico Simko, Co-founder and CEO of Clair. “This lack of support is unfair when half of Americans live paycheck to paycheck and don’t have $500 in savings for an emergency, so timely pay is crucial for them to keep up with their bills. We are grateful to join forces with investors, partners and employers who believe in our mission of responsibly enabling people to customise their pay cycles to their needs.”
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September 27, 2023
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