Pinwheel, today announced it has raised $50 million in a Series B funding round led by GGV Capital, with continued participation from Coatue, First Round Capital and Upfront Ventures, as well as new investments from strategic partners including AMEX Ventures, Indeed, Kraken Ventures, Franklin Templeton, and more.
Pinwheel’s mission is to help create a fairer financial system by providing an API that allows businesses to easily and securely connect payroll accounts to their apps with consumer authorization. By establishing this layer of income connectivity, fintechs, financial institutions and many others can develop new tools or services that provide equitable access to financial services for all, including the 67% of Americans considered financially secure. bad health.
While income and employment status are the primary determining factors in all financial decisions, this information is not readily available, making it impossible to tailor financial service offerings to a person’s specific financial situation. . Pinwheel’s market-leading data coverage covers nearly 80% of employed people in the United States. It’s the industry’s most comprehensive level of data, from traditional forms of income and work through payroll systems for the Top 500 Employers, to a burgeoning ecosystem of less traditional income and work such as platforms for the economy of concerts and creators. This breadth of data solves the missing middle of income, ushering in the next generation of equality-focused fintech innovation.
For example, Pinwheel provides real-time data on a person’s income and uniquely covers not only scheduled direct deposits for salaried employees, but also hourly clockings, most accurately presenting any type of income. This data can be used to enable offers such as Earned Wage Access (EWA), through which a person can receive their money as soon as they have earned it, bypassing the waiting period for a paycheck . When encountering an immediate financial need, a person now has an option that can actually maintain or improve their credit by avoiding high interest payday loans or credit cards. Likewise, Pinwheel’s technology can also be applied to other scenarios such as loan appraisals, etc. This establishes a more symbiotic relationship between consumers and financial services. Pinwheel’s industry-favorite flagship products, such as direct deposit switching, income and employment data, and paycheck-linked lending, power innovations like these.
With Pinwheel, by developing unique offerings that will improve the overall fiscal health of people in the United States, fintechs and financial institutions are able to more successfully acquire new customers and retain existing customers, while offering consumers with enhanced experiences that disrupt the financial status quo. Pinwheel works closely with its clients including Block (formerly Square), Varo, Lendly and Daylight to pave the way for a fairer financial system.
“With this latest cycle so closely following our Series A, we are poised to rapidly scale and introduce new solutions that will change finance as we know it,” said Kurtis Lin, co-founder and CEO of Pinwheel. “I’m especially passionate about fighting the vicious cycle of paycheck-to-paycheck life that afflicts nearly 80% of people in the United States, by developing products that will fuel EWA and loan opportunities. I look forward to a world where people are proactively offered new payment terms for a personal loan if they lose their job, or faster access to their paycheck in times of crisis instead to deal with loan sharks.”
“Pinwheel’s API unlocks the power of the revenue layer, driving the next wave of innovation in the fintech ecosystem,” said Tiffany Luck of GGV Capital. “Pinwheel has the ability to impact every American who receives a paycheck. Such an opportunity, coupled with the company’s mission to build a fairer financial system, uniquely positions Pinwheel to reshape financial life. of so many people in a positive way. We are proud to partner with them on this journey.”
With its leading team of many fintech industry veterans, Pinwheel has built an enterprise-ready platform that securely runs over 4.6 million processes per month, an increase 400 times over the previous year. Pinwheel is the market leader in conversion rates. Last year, Pinwheel increased its annual recurring revenue by 177 times.
With this funding, Pinwheel plans to triple its workforce to 180 people, with a particular focus on engineering roles, continue working on EWA, and expand into new areas such as tax preparation. Additionally, the company will continue its commitment to setting the industry standard for consumer data security. Last year, Pinwheel received its SOC2 Type 2 compliance. Not only is Pinwheel the only payroll data provider to have a CISO, but it is also the only company that handles both direct deposit change and providing payroll data to be a Fair Credit Reporting Act (FCRA) compliant Consumer Reporting Agency (CRA).