ZayZoon is an Earned Wage Access (EWA) provider for small and mid-sized businesses. And it also works as a powerful corporate social responsibility tool and financial wellness program. Pulse 2.0 interviewed ZayZoon co-founder and president Tate Hackert to learn more about the company.
Formation Of ZayZoon
How did the idea for ZayZoon come together? Hackert said:
“When I was younger, I witnessed first-hand the number of people facing short-term cash flow issues, and the solutions to help them, like payday loans, were terrible. In an effort to help the rising number of employees who couldn’t wait for payday to make ends meet, I had the vision for ZayZoon – a service that would unlock employees’ earned wages. I teamed up with Darcy Tuer, CEO, and Jamie Ha, CFO, to turn this idea into reality.”
Favorite Memory
What has been Hackert’s favorite memory working for the company so far? Hackert shared:
“I have two.
1.) In 2019, we teamed up with Visa to put together a series of videos showcasing ZayZoon clients and the benefits Earned Wage Access can have in the workplace. The first of these videos was filmed at a Holiday Inn Express in a rural town in Pennsylvania. Wearing a ZayZoon shirt, someone shouted to me ‘Hey, ZayZoon, I use that!.’ This trip was the first time I ever chatted with customers in real life and the juxtaposition of a rural town with horses and buggies against employees getting paid through the most advanced technology available, made for a memorable experience.
2.) In October of 2023, we gathered the entire team for an offsite. With more than 100 ZayZooners from all parts of North America, remote work helps us accomplish our mission by drawing from the best people, regardless of their city. It also means many team members have never had the opportunity to meet each other. Being able to interact with many ZayZooners for the first time and feel the energy in the room was a powerful and heartwarming experience.”
Core Products
What are the company’s core products and features? Hackert explained:
“ZayZoon is on a mission to save 10 million employees $10 billion dollars. We’ll achieve this with a relentless focus on helping employees who are struggling to make ends meet. At the same time, small and midsize businesses (SMBs) are faced with their own issues when it comes to engaging their workforce.”
“ZayZoon helps employers recruit and reduce turnover while keeping employees away from predatory loans and unnecessary bank fees. ZayZoon has become the fastest-growing Earned Wage Access (EWA) and financial engagement platform for SMBs, currently used by more than 10,000 businesses across the United States. EWA provides employees with access to their earned wages whenever they need them, instead of having to wait until payday. This allows them to avoid relying on payday loans or dealing with unnecessary bank fees.”
Evolution Of ZayZoon’s Technology
How has the company’s technology evolved since launching? Hackert noted:
“We’ve strived to make our technology the easiest in the market for an employer to implement and an employee to use. Over the years we’ve built out more than 180 payroll integrations which, along with some secret sauce, allow us to activate an employer in 30 min or less. We’ve also given employees increased flexibility in how they access their wages – starting with instant transfers to their bank account which in 2017, we were the first to ever do so. Now, employees can also access their pay through a ZayZoon debit card, gift card, or Venmo.”
Funding
After asking Hackert about the company’s funding information, he revealed that the company raised $53 million in total equity funding.
Total Addressable Market
What total addressable market (TAM) size is the company pursuing? Hackert assessed:
“ZayZoon is here to service employees across the United States through Small and Mid-Sized (SMB) businesses. Did you know that more than 99.9% of businesses in the US are SMBs?”
Differentiation From The Competition
What differentiates the company from its competition? Hackert affirmed:
“We offer one of the widest ranges of flexible and fee-free payout options to help employees manage everyday expenses and allow employees to send wages where they prefer. Employees even have the option to withdraw some or all of their earned wages onto instant gift cards with a bonus amount of up to 25%. Employees have hundreds of brands to choose from like Walmart, DoorDash, and Amazon, which can help wages go further where customers are already spending money and saving on everyday essentials.”
“We’re also available to ALL employees, regardless of whether they are hourly, salary, part-time, or full-time. For businesses, we make our service completely hands-off and help alleviate any administrative burden that they might experience from handling employee advances in-house or through another EWA provider.”
Future Company Goals
What are some of the company’s future company goals? Hackert concluded:
“EWA is just the beginning of how ZayZoon will reshape financial empowerment and further dominate an emerging sector. ZayZoon is uniquely positioned to expand beyond our core EWA business to become the top financial management platform for everyday employees. Products such as employee recognition and rewards, financial services such as credit-building products, and improved bill payments are just some of the ways we’ll be invaluable to the workplace.”
