SaaS startup Paywallet secures $14M in funding to enable consumers to connect their payroll accounts for loan repayments
Paywallet, a Software As A Service (SAAS) platform that enables payroll-based financial transactions, has received $14 million to date in funding including a recently closed $8.82 million Series A funding round.
The Series A round was led by a new investor Pasaca Capital Inc., with participation from backers of the previous rounds including PruVista Capital LLC, and Arcadia Funds LLC, a Burlington, MA-based fintech-focused investment manager.
The Jacksonville, Florida-based Paywallet will use the new cash infusion to expand its sales and marketing efforts, build partnerships with other financial products and services companies, extend coverage to 95% of addressable end customers/users, help initiate growth internationally and bring scalable, decentralized applications to the lending industry through blockchain technology.
Incubated by Pruvista Capital, Paywallet provides easy-to-integrate APIs for its clients for various lending journeys. Lenders and other institutions leverage Paywallet’s technology to verify employment and bank information and establish payroll-driven remittance instructions for their customers. This enables them to expand access more easily to those consumers who rely on their verified source of income as proof of their ability to pay.
In a statement, Paywallet CEO DK Sharma said, We are excited to partner with our valued investors to bring comprehensive payroll-linked payment and identity software-as-a-service (SaaS) solutions to lending and fintech companies, enabling disruptive models of responsible credit decisioning and predictable repayments.”
Sharma added, “The new funding will allow us to accelerate our growth and bring web 3.0 paradigms to lending, changing the way customer data is accessed and used for making credit decisions and, in the process, democratize access to affordable credit for all.”
The Paywallet team has deep experience in the payments space and payroll-linked lending. Prior to becoming Paywallet CEO, Sharma was previously the Chief Information Officer (CIO) of Citigroup International where he led the development of technology to support both payroll-linked lending and short-term financing offerings across various markets.
“Annually more than $10 trillion of funds move through paychecks,” said Sharma. “Paywallet aims to enable these funds as a secure payment option for any ongoing contractual obligation like leases, loans or buy now pay later (BNPL) transactions.”