Paywallet, a payroll-linked payment, and identity solution provider, has raised $14m in funding to drive its sales and marketing efforts.
The fresh capital includes the proceeds from the firm’s recently closed $8.82m Series A funding round led by new investor Pasaca Capital.
Existing backers PruVista Capital and Arcadia Funds also invested in the Series A round.
Paywallet’s full life-cycle payroll-linked SaaS platform allows financial institutions to verify employment and bank information and facilitate payroll-driven remittance instructions via APIs.
This helps lenders enhance payment certainty by validating their underwriting decisions based on identity and employment data and payroll-linked repayment instructions.
Additionally, the firm enables consumers to connect their payroll accounts for loan repayments.
According to Paywallet CEO DK Sharma said: “Annually more than $10trn of funds move through paychecks.
“Paywallet aims to enable these funds as a secure payment option for any ongoing contractual obligation like leases, loans or buy-now-pay-later transactions.”
The capital infusion will help Paywallet develop partnerships with additional financial products and services companies.
The firm also aims to boost its coverage to 95% of addressable end customers, expand internationally, and bring out blockchain technology-based decentralised applications to the lending space.
Sharma said: “The new funding will allow us to accelerate our growth and bring web 3.0 paradigms to lending, changing the way customer data is accessed and used for making credit decisions and, in the process, democratise access to affordable credit for all.”
Last year, Western Union signed a five-year global partnership with IRIS Software Group to launch simplified payroll and payments solutions worldwide.