How helpful would it be for a worker to have access to their paycheck in advance 4 times a month? Incredibly helpful, and that is what Payroll Growth Partners aimed to bring to life.
In a day and age where cost of living is through the roof and employees, normal people, live paycheck to paycheck, PGP came up with a system to sustain service workers, hourly-paid workers and anyone who has to pay attention to their expenses to ensure they are within budget. As per figures, 64% of Americans regularly run out of cash by payday, 57% of adults cannot afford $1,000 unforeseen expenses and money represents stress to 55% of adults. PGP launched WageLink to improve the payroll experience of hourly and gig-economy workers, hoping to ease their life and budget planning. It is also important to consider that such a slice of workers often live and work in the USA to then send money to their relatives back home, mostly in South America.
WageLink launched its paycard in July 2023, its marketing and sales were revamped in August 2023, the first batch of customers were onboarded in September 2023. In January 2024, the EWA feature (Earned Waged Access) was launched, in February Circle was integrated and the same took place with other HRM systems. March and April were dedicated to machine learning EWA with dynamic draw limits based on risk.
WageLink is an Earned Waged Access tool that allows employees to access earned wages in advance of payday so that they can manage unexpected expenses, move money from bank accounts to PayCards (which helps tracking their earnings and spending) or gift cards, and learn to save and budget their finances. WageLink helps employees avoid bank fees and debt as per the following cycle: an unexpected expense arises, the worker can rely on EWA, sustain their expenses and then finally receive their paycheck.
The main perk of WageLink is that it integrates fully in sync with existing payroll systems thanks to ‘Plug and Play’, which means that employers who are already set up with a certain payroll system can easily integrate softwares so that HR does not have to be assigned additional work. With time and attendance built on payroll APIs such as Asure and UKG and finally dispose of a mobile app that connects with their life, language translation available and easy to work for anyone who might not be extremely tech-savvy. Obviously, this option is beneficial for any employer as such flexible pay solutions available result in higher rates of retention and employee satisfaction, HR streamline, improve company culture and be more sustainable eliminating checks.
WageLink offers an instant, low-cost global remittance product on crypto rails and plays out as follows: WageLink user draws earned wages to send abroad, the funds are credited to USDC wallet via Circle, crypto is sent to international receiver via blockchain and Zebec offers instant offramp to prepaid card or local bank. The WageLink support team will help with implementation, employee activation, client onboarding, demos and training, marketing and more.
The cost of living crisis ensures, luckily or unfortunately, to drive demand for a real time payroll solution with around 20% penetration of the current EWA solution as of 2023. EWA also allows a 5$ fee per withdrawal, maximum 250$ withdrawal per day, 3 withdrawals per pay cycle, 3.5 days until repayment and 12% cost of capital.
How is Run Capital Partners involved and would you like to be as well?
Run Capital Partners is the chosen partner to help raise capital in Europe for such an exciting and innovative project that has proficuous margins and expansion availability to many other countries and companies. Run Capital Partners uses its best efforts to assist the Company in raising capital through the issuance of bond securities tied to the value of simple Agreement for Future Equity (“SAFE”) rights issued by the Company (the “Capital Raise”). Run Capital will provide financial analysis, valuation, structuring of the transaction, preparation of marketing materials, and identification of potential investors among its network of accredited investors in the European Region and collect investor funds through a special purpose vehicle (SPV) setup jointly by the Advisor and the Company.
Should you wish to learn more about it, please contact us!
