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PayActiv Secures $100 Million of Funding for Employer-Sponsored Financial Wellness Solutions

Earned Wage Access Saves the Average American Worker $250 Each Month

SAN JOSE, Calif., August 13, 2020-- PayActiv, Inc., the leading employer-sponsored earned wage access and holistic financial wellness platform, today announced that it has secured $100 million of funding to further its mission of bringing security, dignity and savings to workers.

The Series C financing round was led by Eldridge and includes existing PayActiv shareholders Generation Partners and the Ziegler Link•Age Fund II. PayActiv has also structured an expandable variable funding facility ("VF Facility") with Security Benefit, a leading retirement solutions provider. The powerful combination of growth equity and VF Facility financing provides PayActiv the capability to rapidly expand its customer base, while supporting current clients with cost-free financial wellness benefits that improve employee engagement and retention. PayActiv currently serves more than 4 million employees at over 1,000 businesses across retail, food services, business processing services, and over 400 senior living and healthcare businesses. Its clients include Walmart, Wayfair, Ibex Global and many others.

"American families are facing more financial stress than they have in generations," said Safwan Shah, CEO and Co-Founder of PayActiv. "The timing gap between work and wages is the main reason workers get hit with punitive late fees, overdraft fees and other penalties. Cumulatively, these fees reduce wages by seven percent every month. The PayActiv platform is the only system where everyone wins: employers lift worker morale with little to no cost and huge dividends; employees get wages when they actually need them most; and cash re-enters the economy faster, making communities financially healthier."

A recent PayActiv study conducted since the outbreak of COVID-19 found that 82% of workers are more worried about financial issues than their health. In addition, 58% of workers have seen their expenses increase during this time.

Employers have found that when PayActiv's technology is implemented into their payment services, on average they have shown reduced turnover of their workforce by 25% to 31%. This correlation has led to new business partnerships with ADP and Paychex, among others.

"The future of pay is not a two-week cycle," said Todd Boehly, Co-founder, Chairman, and Chief Executive Officer of Eldridge. "By simply giving people access to their wages as they earn them, PayActiv increases the velocity of money, stimulating the economy and serving employers and employees by driving costs down and efficiencies up."

As a standalone ready-to-use mobile app, PayActiv provides the funds for earned wage access. According to PayActiv's research, the average American worker can save $250 every month by tapping into earned wages and avoiding the fees associated with alternative financing sources.

A certified B Corp and Public Benefit Company, PayActiv offers industry-leading flexibility in how users access their cash, including through direct cash pickup, PayActiv prepaid card, instant Visa or Mastercard debit card load, ACH payment, or by using wages to pay bills, make purchases on Amazon, or purchase rides on Uber. The company also provides its users with a range of financial wellness and planning tools backed by AI and machine learning that enable customers to save, budget and more efficiently manage their money.

About PayActiv

PayActiv's mission is to bring security, dignity and savings to workers through an award-winning holistic financial wellness platform that gives employees on-demand access to earned but unpaid wages. Businesses that partner with PayActiv see significant cost reductions through increased recruitment, engagement and retention. Employees love PayActiv because it eliminates the expensive, between-paychecks tolls of payday loans, bank overdrafts and late fees. PayActiv also offers a suite of financial services that include savings and budgeting tools, bill payment and financial health measurement. PayActiv has won best in class awards in both FinTech & HRTech and is the provider of Earned Wage Access to Walmart.

In June 2019, PayActiv released a short film titled It's About Time. The documentary looks at pay timing and its correlation with epidemic financial stress being experienced by millions of working Americans. For more information, visit www.payactiv.com.

About Eldridge

Eldridge grows diversified businesses with a focus on Insurance; Credit; Technology; Real Estate; Sports and Media; and Consumer. In particular, the firm seeks to build and grow businesses led by proven management teams that have demonstrated leadership and experience to scale an enterprise. Eldridge is headquartered in Greenwich, Connecticut, with additional offices in Beverly Hills, New York, and London. To learn more about Eldridge please visit www.eldridge.com.

About Generation Partners

Generation Partners is a private equity firm targeting growth equity investments of $10 million to $50 million, in both minority and majority opportunities. For over 30 years, the firm's principals have invested in more than 50 businesses and have a long history of backing companies that combine good purpose with outstanding business models. Generation focuses on recurring revenue service companies with strong growth drivers, scalable business models and technology-driven operating leverage. The firm is structured to provide long-term equity capital. Generation has offices in Greenwich, CT, Los Angeles, CA, and Austin, TX. Visit www.generation.com to learn more.

Ziegler Link•Age Fund

The Ziegler Link•Age Funds are a fund family consisting of two funds that seek to invest in companies who are improving aging and post-acute services in the United States and around the world. The funds, with over $60 million in assets, seek to invest in growth companies who are able to dramatically improve the healthcare IT or healthcare services landscape for our aging population. The Fund's Limited Partners include many of the most innovative and progressive senior living providers, healthcare systems and strategic service providers in the United States, Canada and Australia. The funds are managed by a joint venture between Ziegler (www.ziegler.com) and Link•Age (www.linkageconnect.com).

Contact:
Media Contact
Melanie Gounardes
mgounardes@prosek.com
914-844-5537


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