Thu, Jun 23, 2022 10:02 AM
LOS ANGELES--(BUSINESS WIRE)--Jun 23, 2022--
Tapcheck, an employee financial wellness and earned wage access platform, today announced a $20 million Series A led by PeakSpan Capital. Hundreds of employers offer Tapcheck to their hourly employees, including the likes of McDonald's, Jack in the Box, Home Instead and more. The company will use the funding to further its mission to improve business performance by empowering employees with financial wellness.
“We’ve always believed that businesses could benefit when their employees’ financial well-being was taken care of — something we saw firsthand in other businesses we founded and worked at,” said Ron Gaver, CEO and co-founder of Tapcheck. “Our strategy is clearly resonating, and we’re excited to put this capital to work to support more companies and their people.”
Tapcheck was founded in 2019, when its husband-and-wife founding team were inspired to find a way to help employees across the country access their earned wages before payday. They saw firsthand how cash advances relieved the stress that usually comes with living paycheck to paycheck — a reality for 61% of the U.S. population. Not only did they see employee loyalty and productivity improve, but business performance and profitability did too. In the past year, the business has grown revenue 10x year over year.
“The fallout from the pandemic has only accelerated the need for Tapcheck,” added Kayling Gaver, COO and co-founder of Tapcheck. “It’s incredibly gratifying to be able to help workers and their families make it through unforeseen challenges and gain more financial flexibility and confidence, while helping employers retain great people.”
“Tapcheck has been an incredible partner to our business, acting as a safety net for our employees during this critical time of need,” said Heather Harrington of Harrington Management, a McDonald’s franchisee. “It’s helped improve morale and retention, and set us apart from other prospective employers. Best of all, it was easy for us to deliver to our team, because Tapcheck makes it easy as it does not impact or change our workflows or payroll processes given its seamless integration with our provider, CTR Payroll Services, and its underlying employee experience platform, isolved People Cloud.”
Success with such franchise operators has led to rapid adoption within the brand across nearly 10% of all franchised McDonald's locations.
While most EWA solutions are out of reach for small businesses — which often don’t have the cash flows to fund advances and lack the enterprise-grade payroll integrations needed to make EWA estimates accurate — Tapcheck has built a flexible solution from the ground up to support as many businesses and employees as possible. Tapcheck integrates with over 100 systems including ADP, Paychex, Paylocity and others to enable unprecedented precision in an EWA solution. After connecting to an employer’s existing payroll system, Tapcheck uses the most up-to-date payroll profile information to estimate an employee’s net earnings. Workers can choose when to access up their pay for a small fee — comparable to an out of network ATM fee — at no cost to their employer.
After adopting Tapcheck, 74% of employees reported reduced financial stress and 59% said they were more motivated to go to work. What’s more, employers using Tapcheck’s solution have seen a 74% decrease in costs due to absenteeism, 48% reduction in those due to turnover, and 50% reduction in hiring costs.
“Tapcheck’s team understands that businesses thrive when their employees are thriving, especially when it comes to employees’ financial health. This is a simple notion, yet hard to put into practice for many companies. Tapcheck has made it possible for employees across the spectrum to get early access to their wages, and soon, a plethora of other financial wellness benefits,” said Jack Freeman, Partner at PeakSpan. “We’re proud to have backed Tapcheck at this critical juncture as they continue to grow rapidly and expand their reach.”
Tapcheck is a financial wellness benefit company that works with companies to help workers access their earnings before payday. Available at no cost to employers, Tapcheck uses an intuitive mobile app to give workers greater control over their finances, which reduces their stress at home and increases their productivity at work. And thanks to Tapcheck’s seamless integration with existing payroll programs, employers who incorporate on-demand earnings into their employee benefits packages find it to be a cost-effective way to distinguish their company from competitors, reduce turnover rates, and provide the financial flexibility that employees want. For more information, visit https://www.tapcheck.com and follow us on LinkedIn, Twitter, and Facebook.
ABOUT PEAKSPAN CAPITAL
PeakSpan Capital is a growth equity firm based in New York City and San Mateo. Having partnered with over 30 high-growth software businesses and with $1.5B+ in AUM, PeakSpan’s mission is to be the partner of choice for growth stage entrepreneurial teams who are building amazing software targeted at business buyers of all sizes. PeakSpan combines deep domain expertise within a select number of themes with a homegrown, proprietary technology platform providing visibility into company and market performance, to help disruptive entrepreneurs drive resilient, risk-adjusted value creation. To learn more about PeakSpan Capital and its portfolio, please visit: www.peakspancapital.com.
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KEYWORD: CALIFORNIA UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: SOFTWARE BANKING RESTAURANT/BAR INTERNET PROFESSIONAL SERVICES PERSONAL FINANCE APPS/APPLICATIONS TECHNOLOGY SMALL BUSINESS RETAIL HUMAN RESOURCES FINANCE
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PUB: 06/23/2022 11:00 AM/DISC: 06/23/2022 11:02 AM