Fintech Startup Rain Raises $116 Million To Speed Up Hourly Workers’ Pay Cycles
Summary
Rain is a four-year-old company that uses technology to advance employees, typically hourly workers, their wages shortly after a shift ends so they dont have to wait for payday to have cash on hand. The fintech category promises a credit-free alternative to payday loans and has grown over the past 13 years as players like 11-year-old PayActiv and 8-year-old DailyPay have launched products. When employees sign up for the service they assign their wages to Rain, meaning the company is compensated for the advances automatically by the employer through its regular payroll system. DailyPay declined to comment and Chime did not respond by time of publication.Bradford says Rain can improve employee retention and help companies attract more applicants for open positions. While currently focused on earned-wage access, Rain plans to use this high level of engagement and integrations with employers human resources, timekeeping and payroll systems to expand into other financial products such as health savings accounts.