Money is flowing into the coffers of one startup that is looking to change the way paychecks are paid.
TechCrunch reported that Activehours has grabbed $22 million in Series A funding through a round led by Matrix Partners. That follows $4.1 million raised previously in seed financing.
TechCrunch likened the startup to an ATM that lets consumers who have worked to accumulate wages pay for “unexpected” transactions, such as car repairs, without the fees that would be levied from traditional sources, like a bank or payday lender.
The service does not charge interest but does let people tip at a level they find commensurate with what is deserved. The tips represent revenues to Activehours, and there are systems in place that keep workers from drawing down every penny held by every paycheck.
In terms of payments, all that is needed, said TechCrunch, is a functioning checking account and gainful employment. The service that allows workers to access pay accrued for work performed has some pacts in place with companies such as Uber and Sears.