- Wage — an infrastructure software solution that enables people to seamlessly and securely share their payroll data with third parties — announced recently that it closed $5 million in funding. These are the details.
Wage — an infrastructure software solution that enables people to seamlessly and securely share their payroll data with third parties — announced recently that it closed $5 million in funding to scale customer acquisition and support additional payroll data partnerships. This round of funding was led by Google’s AI-focused venture fund Gradient Ventures with follow-on investment from 8VC, Pear Ventures, Bloomberg Beta, CoFound Partners, and executives from SoFi, Public, Zillow, and Affirm.
Wage’s Application Programming Interface (API) infrastructure delivers direct-source payroll data instantly with a credential-less process as lightweight as a credit check and no clunky login flows or document uploads are required. By utilizing direct data integrations with leading payroll partners, the company enables consumers to quickly and securely share their data with third parties they choose like lenders, landlords, hiring managers, and countless other fintech apps – with just a click.
Originally founded under the name Verix in 2018, Wage has been quietly building its network of payroll partners. The company’s co-founders Ben Prawdzik and Shaan Patel utilized their experiences at companies including Gusto, Goldman Sachs, Box, and Bain Capital when designing the platform to meet the demands of the rapidly evolving fintech space. And Wage works with payroll companies covering more than 30 million employees who work at companies like Amazon, Delta Airlines, Best Buy, Starbucks, Dell, Hyatt Hotels, and tens of thousands of others.
Customers utilizing Wage’s API can reliably access payroll data at ultra-low latencies and massive scale because the company’s integrations with leading payroll and HR systems are direct connections. And this is in contrast to other startups in the payroll data market who often access data by asking consumers to provide their payroll account username and password before deploying bots to log into the consumer’s account via the public internet, which is a process known as “web scraping.” A scraping-based approach has several drawbacks compared to Wage’s direct-access model: consumers often can’t remember their payroll login information. And bots often fail when payroll systems deploy anti-scraping tools or change their websites.
Wage is designed with security and transparency at its core. And the company uses enterprise-grade encryption, is Fair Credit Reporting Act compliant, and SOC 2 Type 2 certified. Plus Wage doesn’t bulk-download payroll data but instead routes it on a one-time basis from payroll systems to the specific third party a consumer has authorized. By comparison, legacy solutions from credit bureaus often warehouse vast quantities of consumer data under failure-prone security protocols and opaque consent practices.
KEY QUOTES:
“Historically, payroll data access has been a burdensome process for financial services providers, consumers, and employers. Our solution is comparable to a credit check. We completely remove the friction point of relying on consumers or their employers to act, whether uploading a document, entering data, taking a phone call, or going through a login flow.”
— Ben Prawdzik, CEO and co-founder of Wage
“A great deal of credit decisioning is a black box that penalizes people with little-to-no credit history and doesn’t capture one’s full potential. Wage provides accurate and up-to-date payroll data seamlessly and securely – creating a more equitable and inclusive financial ecosystem, and empowering consumers, financial services, employers, and others with efficiency and control over the use and access of their data. Wage has seen impressive growth since its inception, and we look forward to supporting its momentum.”
— Zachary Bratun-Glennon, a Partner at Gradient Ventures
