Dallas-based payments FinTech Highline Technologies announced Monday (Aug. 22) that it has raised $13 million in a Series A funding round.
The round was led by Jump Capital, Costanoa Ventures, Foundation Capital and other investors. According to the press release, the new funds will be used to add staff, launch strategic partnerships and expand the adoption of its products and services.
Founded in 2020, Highline provides a platform that lets consumers automate bill payments directly from their paychecks, which helps them avoid missed payments and overdraft fees.
The company said its solution lets consumer lenders “improve portfolio performance, allowing them to expand approvals, reach more potential customers and grow revenue while reducing risk.” Highline also extends payroll-linked lending to any asset class, something it said has traditionally been limited to personal loans.
“When speaking to lenders, we heard a consistent refrain — they were all aware that connecting to borrowers’ payroll would drastically reduce defaults and materially improve their competitive positions,” said Yelena Shkolnik, partner at Jump Capital. “Most had tried and failed to leverage deductions, challenged to compliantly manage the funds flow, or offer adequate employer coverage.
“In Highline, lenders have the solution they’ve searched for and a powerful end customer experience to transform their lending.”
Research by PYMNTS has found a rising demand for digital payroll among American workers, with 80% of them saying they should have access to their wages at the end of the work day, rather than at the end of a two-week pay period.
Meanwhile, 78% of these workers said that on-demand payroll would boost their loyalty to an employer, a finding supported by another survey that showed 42% of unemployed individuals would find instant payroll appealing when seeking a new job.
Employers could also benefit from instant payroll, as one study showed that offering access to same-day wages could shrink employee turnover by up to 27%.