Clair Partners with Gusto to Offer Embedded On-Demand Pay to Employees at Many of Their 300K Businesses
July 16 2024 - 8:00AM
Business Wire
Gusto Is the First Partner to Leverage Clair’s
New Embedded Offering That Seamlessly Integrates Earned Wage
Advances Into HR Tech and Payroll Platforms
Clair, the pioneering fintech company offering free Earned Wage
Advances (“EWA”) originated by a national bank, today announced a
unique new partnership with Gusto, an integrated, all-in-one
software platform that automates and simplifies company payroll,
benefits, and HR. Through this collaboration, Clair and Gusto are
breaking ground on a technology-first solution in the EWA industry,
granting employees at many of Gusto’s 300,000 supported businesses
access to sign up for On-Demand Pay via Gusto Wallet, which helps
employees increase prosperity by delivering financial and work
productivity tools. Gusto is the first partner to announce this new
Clair Embedded product, which leverages proprietary technology to
provide an embedded, compliant EWA solution that integrates into
workforce management and payroll applications.
This new product and partnership has launched at a time when
employers are increasingly turning to financial wellness benefits
to attract and retain talent. About 80% of employers offering
financial wellness benefits to employees last year said they
planned to invest even more in these perks in 2024. In alignment
with this trend, EWAs are the #1 most requested feature by
employees using Gusto Wallet.
To meet this growing demand, Gusto is partnering with Clair to
leverage the advanced lending infrastructure and compliance
framework developed by the fintech team over the past three years.
This collaboration provides a robust and seamless solution for EWA
in a changing regulatory environment. Gusto selected Clair out of
nearly a dozen on-demand pay solutions for its compliance framework
and technical capabilities. Powered by its partnership with
national bank Pathward®, N.A., which is the entity issuing all the
advances directly to the consumers, Clair is a leading EWA provider
offering bank-issued EWA with no interest. The company already
partners with over a dozen workforce management platforms to
provide On-Demand Pay to their connected users and facilitates
millions of dollars in EWAs every month.
“Emergency expenses often arise and employees need a secure and
convenient way to cover those unexpected costs,” said Dan Loomis,
General Manager and Head of Product at Gusto’s Members business
unit. “Due to these needs, we decided to add an on-demand pay
offering to Gusto Wallet and knew it would be crucial to find the
right partner to bring it to life in a seamless, compliant way. We
evaluated all the major players in the EWA space and Clair stood
out as our ideal partner, bringing both the compliance framework
and technical capabilities we need to offer wage advances right
inside our existing app. We’re proud of this industry-leading
collaboration that expands the possibilities of embedded financial
wellness benefits.”
Clair’s On-Demand Pay feature has already begun rolling out to
Gusto members, who have access to a variety of financial benefits
in Gusto Wallet, which include interest-bearing accounts backed by
FDIC-insured bank nbkc, a debit card for purchases or cash
withdrawals from ATMs, and budgeting and tax tools. This new
collaboration expands on Clair and Gusto’s existing partnership
with Gusto Embedded, the company’s payroll API, which provides EWA
to workforce management platforms that are adding payroll
processing for their users.
“Our team has long admired Gusto for how it removes friction
from the workforce management and payroll process to move the HR
tech industry forward,” said Nico Simko, Co-founder & CEO of
Clair. “After successfully partnering with Gusto Embedded, we’re
honored to power Gusto Wallet’s compliant On-Demand Pay feature, so
millions of Gusto members can get paid when they want to. With this
launch of our Clair Embedded product, our goal is to ensure that
human capital management platforms don’t need to drive members away
from their existing apps to access Clair On-Demand Pay. We’re
thankful to Gusto for pioneering this offering and we’re looking
forward to helping many more HR and payroll companies add the same
kind of value for their customers.”
With the new Clair On-Demand Pay feature, Gusto Wallet Premium
members can:
- See in the mobile app how much of their paycheck they can
access
- Access a portion of their earnings each day
- Avoid a credit pull, which can affect credit scores
- Automatically repay their EWA when their next paycheck
arrives
See Clair On-Demand Pay in action within the Gusto Wallet
app.
About Clair
Clair is the pioneering fintech company offering free earned
wage advances originated by a national bank. Clair helps
professionals get paid before payday, supported by its partnership
with FDIC-insured national bank Pathward, N.A. Clair is available
at over 10,000 employers and more than a dozen workforce management
platforms to help increase employee retention and financial
wellness amid front-line worker shortages. Clair is based in New
York and has raised $45 million in VC equity funding from investors
including Thrive Capital, Upfront Ventures, Kairos, and Founder
Collective. For more information, visit getclair.com.
About Gusto
Gusto is a modern, online people platform that helps small and
medium-sized businesses take care of their teams. In addition to
full-service payroll, Gusto offers access to health insurance,
401(k) integrations, HR experts, employee self-onboarding, and team
management tools. The company serves over 300,000 businesses
nationwide and has offices in Denver, New York City, and San
Francisco. For more information, visit gusto.com.
About Pathward®
Pathward, N.A., a national bank, is a subsidiary of Pathward
Financial, Inc. (Nasdaq: CASH). Pathward is a U.S.-based financial
empowerment company driven by its purpose to power financial
inclusion. Pathward strives to increase financial availability,
choice and opportunity across our Banking as a Service and
Commercial Finance business lines. The strategic business lines
provide end-to-end support to individuals and businesses. Learn
more at pathward.com.
Disclosures:
Clair is a financial technology company, not a bank. All
Advances are originated by Pathward®, N.A. All Advances are subject
to eligibility criteria and application review. Terms and
conditions apply.
While wage advances are free, if you choose to have your Advance
disbursed to your Gusto Spending account instantly, you will be
charged a $4.50 fee. This instant transfer fee will be charged to
your Gusto Spending account at the time of disbursement. Instant
Transfers typically occur in seconds, but may take up to 30
minutes.
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