Pay solutions firm CloudPay has raised $50 million in a new round of funding as the London-based company looks to meet a demand for integrated payroll and payment services.
The capital will “support CloudPay’s continued innovation of its end-to-end enterprise global pay offering,” according to a Thursday (Oct. 27) news release.
The funding round comes as CloudPay is projecting 40% growth in revenue for the year, as it processes 2.5 million payslips annually. To deal with this growth, the company recently hired its 1,000th employee, the release stated.
This year also saw CloudPay team up with Visa to shrink payroll payment cycles from two to three days to a matter of seconds via Visa’s real-time push payment platform, Visa Direct. CloudPay CEO Paul Bartlett called it an exciting time for his industry.
“Payroll has traditionally ended at the payslip, but over 90% of our new business now includes payment services in addition to payroll processing,” he said in the news release. “Companies are also seeing the advantage of being able to offer employees flexibility around when and how they get paid — particularly during the cost-of-living crisis.”
As PYMNTS noted last month, there are a lot of firms like CloudPay raising capital and launching earned wage access (EWA) products and services, from smaller startups to larger players like PayPal.
PYMNTS research found that about 75% of firms consider faster payments as a crucial service to offer, while roughly 90% said they will be able to offer faster or instant digital payments within three years.
“To do the work and go back home, and then wait to get paid next Saturday, is not the way these workers think,” he added. “In the gig world, that offering means you won’t attract the driver, the web designer or the freelancer.”
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