Rain – a financial wellness platform that helps companies give employees greater control over their finances – announced it has secured $300 million in financing from Clear Haven Capital Management for a new credit facility. With this new funding round, Rain now has more capital to service its growing customer base, allowing it to provide employees with an easy way to access their earned wages in real-time, driving increased retention, job applications, and employee engagement.
The traditional pay cycles often serve as a barrier to increasing savings and achieving financial well-being. Americans are estimated to spend over $170 billion waiting for their next paychecks. Rain’s financial wellness platform provides them convenient access to their hard-earned wages in real-time, whenever they work, instead of waiting until payday. With the new funding round, Rain can scale this offering to even more employers seeking to adopt earned wage access as a benefit.
Rain’s pay-on-demand feature enables employees to get paid daily by paying a small fee with each transaction, similar to an ATM charge. And this offers them greater control over their finances and helps them avoid overdraft fees and high-interest loans. Rain adheres to the highest compliance standards and meets guidelines set by the Consumer Financial Protection Bureau, making it one of the safest EWA providers available.
Rain is the most seamless and data-minimalistic EWA provider in the market, integrating easily with timekeeping and payroll systems and requiring the least data. And it is free to use by employers who provide it to their employees as a voluntary benefit. Plus, Rain offers financial wellness tools for employees and allows employers to limit withdrawals to no more than 50% of an employee’s gross earnings per pay period. Combined, these factors make Rain one of the easiest ways for companies to offer EWA as a benefit to their workforce.
A core tenet of EWA is helping employers increase employee retention, engagement, and productivity. Last year, Rain’s employers saw an average of 50% improvement in retention for their employees who use the app, in addition to working an average of more than 20 hours per month. And Rain is estimated to have saved its customers’ employees over $51 million by avoiding overdraft fees and the interest associated with payday loans, meeting its commitment to promoting employees’ financial wellness.
KEY QUOTES:
“With this $300 million in funding from Clear Haven, we’ll expand our reach and further fulfill our mission to empower all Americans to live the life that they can afford to live, protected from predatory fees and lending products. By giving employees access to their hard-earned wages when they need them the most, we’re alleviating the reliance on financial products that further push them into debt. We’re committed to further empowering Americans on their journey to true financial freedom.”
- Fred Choquette, Chief Operating Officer at Rain
“Clear Haven is proud to commit $300 million in funding to Rain as part of its dedication to empowering both employers and employees to thrive in challenging economic circumstances and embark on a more resilient financial wellness journey. Rain’s unwavering mission to transform the financial wellness landscape by granting employees access to their earned wages perfectly aligns with Clear Haven’s vision for a more inclusive and equitable financial future. We are excited to collaborate with Rain, working together to empower employees and redefine traditional concepts of financial wellness.”
- Mark Simmer, Managing Partner at Clear Haven Capital Management
