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ZayZoon Raises $34.5 Million in Series B Funding
ZayZoon, a fintech firm that offers employees early access to their earned wages, has raised $34.5 million in a recent funding round. The round was co-led by Framework and EDC, with participation from ATB Financial.
Accelerating Growth and Developing New Features
The funds raised bring ZayZoon’s total funding to $75 million. CEO Dary Tuer plans to use the money to double down on the company’s growth and accelerate the development of new features on its product roadmap.
Mission to Help Employees and Businesses
In an interview with GamingIdeology, Tuer stated that ZayZoon aims to save 10 million employees a total of 10 billion dollars. The company focuses on assisting employees who are struggling financially while also helping employers recruit and reduce turnover.
A Success Story Emerges
ZayZoon was founded in 2014 by Dary Tuer, Tate Hackert, and Jamie Ha. Over the years, ZayZoon has become one of the fastest-growing apps in its category, serving more than 10,000 business customers across the U.S. and partnering with over 160 payroll providers.
How ZayZoon Works
ZayZoon falls into the category of earned wage access (EWA) fintechs. Employees can request early access to a portion of their paycheck for a small fee of $5. This service helps them avoid high-interest loans and unnecessary bank fees.
Debates Surrounding EWA Programs
Some argue that EWA programs should be classified as loans. However, ZayZoon and similar companies maintain that their services benefit customers by avoiding predatory lending.
Rising Popularity and Increased Regulation
EWA usage is on the rise, reaching $9.5 billion in 2020 according to a report from research firm Aite-Novarica. As these programs gain popularity, regulators are starting to impose audits and registration requirements on EWA providers.
ZayZoon Looks Towards the Future
Despite increased scrutiny, ZayZoon remains committed to expansion. Tuer believes that strengthening the company’s balance sheet will solidify its position as a category leader.