Wagestream raises $21.8m to expand financial well-being app

By Gloria Methri

Wagestream, a financial well-being app focused on frontline workers, has raised £17.5 million (about $21.8m) in a funding round joined by British Patient Capital. The investment was alongside other co-investors, including Lombard Odier Investment Managers and existing investor Northzone.

Wagestream was founded in 2018 to tackle the ‘premium’ low—and middle-income households pay for essential services. Offered through 1,000 employers in the UK, Spain and the United States, its platform already allows three million people—mainly shift and frontline workers—to access an interactive payslip, choose when to get paid, save for a rainy day, save money on bills, and get debt advice. Employers currently offering Wagestream to their employees include Asda, Bupa, Burger King, Hilton, and the NHS.

Wagestream will use the latest funding to expand its range of services and become a ‘complete financial platform’ for low—and middle-income workers. New services this year will include a credit-builder card for those previously denied access to credit, shopping discounts for those impacted by soaring inflation, AI-powered coaching for those priced out of the financial advice sector, and loans for those previously overcharged by credit providers.

Tom Haywood, Investment Director, British Patient Capital, said, “Fintech innovation is needed to tackle the challenge of inequity between financial products aimed at higher earners and products for underserved shift and frontline workers who also require those essential services. Not only is it a rapidly growing business, but it is also providing critical services for an underserved and critical group of workers.”

Peter Briffett, Co-Founder and CEO of Wagestream said, “We believe frontline workers deserve essential services and better financial futures. More than 1,000 employers agree. Together, we’re closing the gap with a platform that helps wherever people are in their financial life – from paying off debt to saving for the first time to building a credit file and planning. The result is a better experience at work, better quality of life at home, and business impact for the employer – because healthy teams are loyal, productive teams.”