New York City-based FinTech Clair has raised $175 million in funding.
The financing was led by Thrive Capital and included participation from Upfront Ventures and Kairos, Clair said in a Thursday (July 6) press release. Michael Presser, investing partner at Kairos, is also joining Clair’s board as an observer.
Founded in 2019, Clair provides an on-demand pay solution that is backed by a Federal Deposit Insurance Corporation (FDIC)-insured bank, the release said.
Clair offers financial services supported by partnerships with Pathward and Mastercard and helps over 50,000 workers get paid as soon as they finish their shifts, with no fees, per the release. It is available at more than 10,000 employers and a dozen workforce management platforms to help with employee retention and financial wellness despite front-line worker shortages.
“Front-line workers are astonishingly underserved, as big banks don’t see them as profit drivers and aren’t building the solutions they need,” said Clair Co-founder and CEO Nico Simko in the release. “This lack of support is unfair when half of Americans live paycheck to paycheck and don’t have $500 in savings for an emergency, so timely pay is crucial for them to keep up with their bills. We’re grateful to join forces with investors, partners and employers who believe in our mission of enabling people to responsibly customize their pay cycles to their needs.”
In addition, Clair has launched Clair for Employers, a suite of free holistic financial wellness benefits for employees of businesses that are not on Clair’s partner platforms, according to the release. The integration requires no ongoing maintenance. The Clair Debit Mastercard also gives employees the opportunity to receive 3% cash back on gas and groceries purchased.
PYMNTS research has found that payment choice is driving gig workers’ employment decisions.
Especially among in-demand contractors and consultants, the ability to be selective about the jobs they accept makes them unlikely to maintain relationships with employers that do not align with their needs for predictable and on-demand pay, according to the “Expanding Payments Choice Playbook,” a PYMNTS and Onbe collaboration.