‘Super app’ to help frontline staff cut bills

FINANCIAL technology group Wagestream is poised to raise more than £100million from investors to finance its US expansion and develop a “super app” that will save frontline workers money.

Chief executive and cofounder Peter Briffett said half the money will be used to expand the functionality of its existing app, so it can help workers in healthcare, retail, hospitality and other sectors cut their bills.

As an example, he said it will help users save money by switching car and house insurance. It will also look to help them with rental deposits, so they can afford to move. The rest of the funds raised will be used to accelerate Wagestream’s rollout in the US. It also operates in Spain and Australia.

Wagestream was founded in 2018 to eliminate payday lenders and high-cost credit by offering people a lower-cost, safer alternative. It works with the likes of the NHS, Bupa, Greene King, Halfords and Rentokil to allow their staff to draw down part of their monthly salaries early for a low fixed fee.

It has since expanded its services to include spending tracking, financial coaching, and savings. Briffett said its mission is “more relevant than ever” given the cost-of-living crisis, which is driving consumers to borrow more.

Through the employers it works with, Wagestream is available to hundreds of thousands of workers. However, at the moment only 15 per cent use its financial coaching service, a figure Briffett expects to increase significantly due to the squeeze on Britain’s household finances.

“We expect to see that hit 50 per cent before the end of the year. We expect to see a big increase in uptake in this environment,” he said.

Wagestream was initially launched with the backing of charities Fair By Design, Joseph Rowntree, Barrow Cadbury Trust and Big Society Capital. Its upcoming financing round will be its biggest to date, having so far raised £60.6 million from investors.

According to Wagestream research, a third of employees do not have any savings.

The group says it has helped 65,000 workers save for the first time through its micro savings option, which moves a set amount of money into a pot every payday.

It also found that around 25 per cent of workers worry about money every day – an increase of eight points on last year, while a quarter run out of money before payday.