Earnings Access Provider ZayZoon Raises $25.5M to Bring Financial Flexibility and… | Your money
CALGARY, Alberta, Aug. 03, 2022 (GLOBE NEWSWIRE) — ZayZoon, a voluntary benefits provider that provides employees across the United States with instant access to their earned pay on demand, is pleased to announce a series of financings totaling $25.5 million in aggregate consisting of $12.5 million in equity and $13 million in a new credit facility with ATB Financial.
This current fundraising, led by Carpae Investments and Alpenglow Capital, brings the total equity raised by the company to $25 million. This round also saw participation from existing shareholders including InterGen Capital, Prairie Merchant Corporation and angel investors Sanders Lee (Hopewell) and Rob Ohlson (Maillot Homes), among others. Although almost all of the company’s funding comes from Canadian investors, the more than 3,000 companies that use ZayZoon to provide their employees with faster access to compensation are located in the United States.
The majority of working Americans are experiencing cash shortages which may force them to seek out undesirable solutions to bridge the gap until the next payday. ZayZoon’s flagship product, Wages On-Demand, gives employees access to wages they’ve already earned, but would otherwise have to wait until their next payday to receive them. When the alternatives are expensive options like late bill payments, overdraft fees, and payday loans, financial options like Wages On-Demand are increasingly becoming an essential service for millions of Americans.
In less than three minutes, an employee can sign up and instantly access their earned salary in their existing bank account or other available wallet options for little or no cost.
Businesses partner with ZayZoon to improve employee recruitment, retention, and overall productivity. With over 100 payroll integrations, including being a Platinum Partner in the ADP Marketplace, over 60% of businesses in the US can activate ZayZoon for their employees in less than 60 minutes, at no cost and no administration required. Partnerships like these have enabled ZayZoon to provide its services to thousands of employees at franchises such as McDonald’s, Burger King, Senior Helpers, and Choice Hotels.
Jamie Ha, Co-Founder and CFO of ZayZoon, said, “We are extremely pleased to see the tremendous level of interest and support for this important offering for both employers and employees. With this funding, we are able to bring ZayZoon’s Wages On-Demand services to millions of people across America, especially during a phase when hard-working employees need it most.”
This round of funding opens the door to the opportunity to expand ZayZoon’s product offering beyond Wages On-Demand and into additional products and services that financially improve employee bottom line and financial well-being. Additionally, it allows ZayZoon to continue recruiting for key positions in growth, operations, and engineering.
Marcos Lopez, Director of Alpenglow, says, “ZayZoon has proven the value it can bring to millions of employees and their employers through a single distribution channel. We are excited to see the team continue to grow. impressive and the use of its product by more employees and employers, helping them access their earned wages more efficiently.”
ZayZoon’s mission is to significantly improve employee financial outcomes through effective and engaging financial products that also create a business advantage for employers. By leveraging the extensive and robust technology built into ZayZoon’s payroll, companies can give their staff access to a program that includes on-demand salaries, financial education, and a prepaid expense card. Workers around the world rely on predatory products like payday loans and overdraft fees to bridge the gap between paychecks created by predetermined pay cycles. ZayZoon aims to break this cycle. ZayZoon’s on-demand access to salaries helps reduce financial stress for employees and significantly improves retention, resourcing and productivity in the workplace.
Are you looking for a role with a high-growth HR and fintech company? Check out https://www.zayzoon.com/careers.
Contact: Chaz Somers [email protected]
This content was posted through the press release distribution service on Newswire.com.
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