Wages app raises £40m in record funding deal

A c o mp a ny b e h i n d a n a p p which enables workers to get access to their monthly wages before payday has raised £40 million in what is believed to be a record in the UK social impact investment sector.

E a r l y s t a g e ve n t u r e c a p i - tal specialists Balderton and No r t h z o n e a r e a m o n g t h e investors to have taken part in the funding round for Londonbased Wagestream.

The app allows staff to draw down a p ercentage of their earned wages any day of the month for a flat £1.75 fee with no interest charged.

E m p l o y e r s f r o m a c r o s s the private and public sector including Rentokil Initial and Hackney Council are using the app which offers benefits i n c l u d i n g g r e a t e r f i n a n c i a l security for staff.

Wag e s t r e a m s a i d t h e a p p also helps employers trying to fill overtime shifts, particularly during unsociable hours, as workers can get paid as soon as their shift is finished rather than waiting until the next payday.