Startup spotlight: Hastee lets you decide when you get paid
Hastee is a financial wellbeing solution targeted at employers...
This week FinTech Magazine looks at the startup that raised £208mn in funding, Hastee.
Hastee is a financial wellbeing solution targeted at employers and employees in order to better manage finances. The main appeal of the product is that it allows employees to withdraw up to 50% of their paycheck each month in advance.
“Becoming a destination employer”
Hastee acknowledges that we are in an age where everything is on demand apart from pay. It makes a case for being paid when the employee decides, noting that it has no financial impact on the business and provides a seamless payroll with time and attendance integration. Financial stress is present in many of our lives, and Hastee drives to reduce this through its flexible salary payment, in turn improving productivity and wellness through employees that would have otherwise been worrying at work.
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Giving employees “something they will actually value”
“attracting talent [that will] keep [employees] happy and give them something they will actually value,” according to the company. This service is digitally disruptive, as it gives employees the power to decide when they get paid, as well as providing flexible budgeting options.
Current customers include London City Airport, IRIS, Avery Care Homes, and Mitchells & Butlers.
Founder & CEO James Herbert launched the platform in August 2017 in London.
[Image: James Herbert, LinkedIn]
Before founding Hastee, Herbert also founded the company Brightsparks, a platform that connects students with temporary and flexible work. Since then it has helped over 15,000 students and staffed over 17,000 events.
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Stripe backs Step - the digital bank for teens
The Series C round raised US$100m in capital from a number of backers, including Coatue, TikTok star Charli D’Amelio, actor Jared Leto, and Will Smith’s Dreamers VC, for the enterprise.
Step provides a free FDIC-insured bank account and Visa card to teenagers. The accounts are backed by Evolve Bank and there is no subscription charge for its usage. Users don’t pay for their accounts and there are also no overdraft fees.
The mobile banking app enables parents to set controls and limits on spending and encourage responsible finances. According to data released by the company, 88% of the platform’s users say this is their first bank account.
To date, Step has seen great success in the marketplace. The company has raised more than $175m from investors and now has 1.5m users.
Stripe, which was founded by Irish brothers Patrick and John Collison, previously led Step’s $22.5m Series A round in 2019.
Step's Series B funding round also brought in $50m, and has a distinctly celeb-tinged reputation with investors including Justin Timberlake and the pop duo The Chainsmokers.
Users get access to a free, FDIC-backed bank account, a spending card and P2P payments platform to send and receive money instantly.
CJ MacDonald, chief executive of Step, said the company is aiming to improve the financial futures of the next generation. “Step is the only banking platform that enables teens to start building a positive credit history before they turn 18 and does not charge fees of any kind.
He has previously spoken about the importance of financial literacy for young people. “Money is just one of those things where I think the more educated and equipped you are early, the better decisions you can make down the road,” he told . “And you can also prevent yourself from making costly mistakes. I mean, the average American doesn't have $400 in emergency savings and pays $350 a year in banking fees. If we can help this next generation just ultimately be smarter and more educated as it pertains to money, I think we'll all be better off.”
Kyle Doherty, managing director at General Catalyst and Step board member, explained, “Gen Z is flocking to modern financial solutions that can be easily embedded within their digital lives and Step has a unique model for how to do this right.”
The news follows on from Stripe’s recent announcement that it plans to acquire TaxJar. The fintech, which builds software for online businesses that automates the reporting and filing of sales taxes, will most likely be integrated with Stripe’s billing services.
Currently, No terms have been disclosed but the Boston start-up had raised more than $60m from investors including Insight Partners.
Stripe chief financial officer Dhivya Suryadevara said of the move, “With TaxJar, we will help millions of internet businesses running on Stripe with their sales tax and make it easier for them to sell internationally.”