A fintech startup known as PayActiv has raised $100 million during the Series C funding round. A Pakistani-American entrepreneur, Safwan Shah, founded the silicon-valley startup.
A private investment firm that leads the Series C Funding program in the USA known as Eldridge. The funding program is done along with existing shareholders, generation partners, and regular Ziegler-linkage funds. Via PayActiv, employees can transact their pay from ATMs before the end of the pay period.
It offers an inexpensive alternative to payday lenders and similar institutions that charge unreasonably high fees and interest rates for loans taken against future paychecks. Currently, PayActiv has over 4 million users and 1000 businesses, including food, healthcare, and retail.
While addressing the event, Safwan shah said: “American families are facing more financial stress then they have in generations. The timing gap between work and wages is the main reason workers get hit with putative late fees, overdraft fees, and other penalties. Cumulatively, these fees reduce wagers by 7% every month. The PayActiv platform is the only system where everyone wins; employees get wages when they need the most, and cash re-enter the economy faster makes communities financially healthier.”
Safwan, the CEO of PayActiv, earned his BS degree e electrical engineering from any university of engineering and technology in the year 1985 and moved to the USA in 1989. He did his Masters and Ph.D. from the University of Colorado in 1990. In 2005 coma Dr. Safwan launched Infonox a platform for payment Total system services acquired Infonox in 2008 for an undisclosed amount.