Wagestream, the financial wellbeing platform headquarter in London has picked up a further £17.5 million in funding. This follows the £175 million funding it secured in 2022. The round includes funding from new investors British Patient Capital (a subsidiary of British Business Bank), Lombard Odier Investment Managers, and participation from existing investor Northzone (invested in Mimo and Kriya).
Wagestream will use the latest funding to expand that range of services and become a ‘complete financial platform’ for low and middle-income workers. For this year, it has planned new services such as credit-builder card for those previously denied access to credit, shopping discounts for those impacted by soaring inflation, AI-powered coaching for those priced out of the financial advice sector, and loans for those previously overcharged by credit providers.
What challenge does it tackle?
Waged workers are increasingly finding it very challenging to save money, ending up living a paycheck-to-paycheck life. The reason behind this is majorly in how they earn. Monthly models of pay are forcing these workers to seek out liquidity from often expensive options such as credit cards and payday loans, just to mention a few.
In the UK frontline workers have been observed to be excluded or forced to pay more for financial services than other workers. The University of Bristol’s research indicates they pay a premium of £490 more for basic household and financial services each year.
Wagestream was founded in 2018 by Peter Briffett and Portman Wills to help these households pay for essential services as high-street providers overcharge them for inflexible products designed for higher-earners, or exclude them altogether.
Offered through 1,000 employers in the UK, Spain and the US, its platform already allows 3 million people, mainly shift and frontline workers to access an interactive payslip, choose when they get paid, save directly from their pay, save money on bills and get free debt advice.
Users can manage budgeting, get paid when they choose, build rainy-day pots, chat to money coaches, save on their bills, and more – all in one app. The Wagestream platform is used by Asda, Bupa, Burger King, Pizza Express and the NHS.
Peter Briffett, co-founder and CEO of Wagestream, said: “Do frontline workers not deserve choice? Do frontline workers – who keep essential services running in good times and tough times – not deserve a better financial future? We believe they do, and more than 1,000 employers agree. Together we’re closing the gap, with a platform that helps wherever people are in their financial life – from paying off debt, to saving for the first time, to building a credit file and planning for the future. The result is a better experience at work, better quality of life at home, and business impact for the employer – because healthy teams are loyal, productive teams.”
Ian Connatty, managing director, Direct & Co-Investment, British Patient Capital, added: “Wagestream is growing at a rapid pace, while still delivering on the important social mission at its core – we’ve been impressed by the team’s clear vision and agile execution. The potential to provide critical financial tools to underserved, overlooked frontline and shift workers is huge. We’re thrilled to be backing the business as it continues expanding its range of fair financial products and services in the UK and beyond.”
