Earnipay raises $4 million to fund instant access to pay

Earnipay raises $4 million to fund instant access to pay

By Jeph Ajobaju, Editor-in-Chief

Fintech solutions startup Earnipay has received $4 million in a funding round to provide flexible, on-demand access to logged-in workers on its app, reducing payroll system hassles for employers and employees.

The funding round was led by Canaan with participation from XYZ Ventures, Village Global, Musha Ventures, Platform Ventures, Voltron Capital and Paystack.

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Earnipay, launched in January, says it will use the money to improve the financial well-being of workers by partnering with employers and integrating with their payroll systems to allow employees to track and withdraw their pay. through the app.

Instant access to salary

Earnipay CEO, Nonso Onwuzulike explained that fintech helps solve problems related to financial worries, which are usually the cause of workplace distractions due to salary payment structure in most organizations. .

“The monthly pay cycle means employees are often unable to pay day-to-day expenses, cover emergencies or take advantage of immediate financial opportunities.

“As a result, they are exposed to predatory payday loans and get stuck in endless cycles of debt with unrealistic repayment periods and high interest rates,” he said.

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Ethical alternative

“Earnipay exists to solve this problem and provide an ethical alternative to instant access to pay while helping employers improve employee engagement and retention at no cost to their business,” Onwuzulike said, according to Nairametry.

“The future of pay is on-demand, and we are thrilled to be pioneering this incredible solution in Africa.

“I am delighted to partner with a group of highly respected investors who understand the need for a platform such as Earnipay to improve access to wages and, above all, to improve the financial well-being of people who earn an income. in Africa. ”

Onwuzulike pointed out that the startup works with employers to improve employee engagement and productivity.

“We are systematically tackling inefficiencies in the way Africa’s workforce interacts with wages and will continue to create products and services with both employers and employees in mind.”

Brendan Dickinson, Partner at Canaan, added: “We have seen access to earned wages growing rapidly in many markets and we believe it is a natural fit in Africa.

“Earnipay has quickly taken hold with a product designed specifically for payroll behaviors in this region, and early adoption by employers is very strong.

“Nonso have built one of the strongest teams we have come across across the continent, and we are delighted to have the opportunity to partner with them.”

Background

Onwuzulike founded Earnipay to target a financial wellness fintech solution that integrates employers’ payroll and human resources (HRM) systems to enable employees with on-demand funding to instantly access their wages earned without interest.

Earnipay says its flexible payroll access helps organizations improve employee engagement and productivity by relieving financial stress caused by eliminating the need for a payday advance or predatory payday loans with interest.

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