Gig Wage, the simplified FinTech payroll platform for the gig economy, announced today its $7.5 million Series A round of funding led by Green Dot Corp. (NYSE: GDOT). As the lead investor in Gig Wage’s Series A funding, Green Dot will serve as infrastructure bank partner, enabling Gig Wage to add seamless, reliable banking solutions to its popular instant payments platform for gig workers and under-banked consumers.
Gig Wage is the first company to build a comprehensive technology product that takes into consideration how money moves through the entire gig ecosystem, not just how it gets to workers. Gig Wage’s technology is shaping the modern financial infrastructure for the future of work by tackling the complex challenge of handling contractor payroll, payments, and compliance.
The company is experiencing rapid expansion, with about 30% month-over-month growth in all facets of its business.
“The 1099 economy is exploding, and Gig Wage is thrilled to bring a truly comprehensive solution to market,” said Craig J. Lewis, founder and CEO of Gig Wage. “As we laid the foundation to offer financial infrastructure for the future of work, it was abundantly clear Green Dot was the best partner for us to help the most people. Our partnership with Green Dot will not only help us on our mission to increase the GDP of the gig economy, but also help us provide a financial social safety net for gig workers everywhere.”
“The fast-growing gig economy presents tremendous demand and opportunity for enhanced banking and payments tools and experiences,” said Dan Henry, CEO of Green Dot. “We’re thrilled to partner with Gig Wage to grow this vertical and empower gig workers and their employers with faster, more seamless financial solutions.”
Stay-at-home orders have accelerated the growth of the gig economy and the need for modern touchless payment technology and branchless banking. The gig economy, coupled with the rise of on-demand tech, currently pays 65-75 million people as independent contractors with an estimated $2 trillion of traction occurring. But the typical payroll structure has been designed for traditional work situations, which leads 1099 workers to lose 2-20% of their income. Gig Wage is addressing these issues for a more seamless experience for 1099 workers.
Leveraging Green Dot’s Banking as a Service platform, Gig Wage can now design and deploy their own customized banking and money movement solutions for its growing customer base. Powered by Green Dot, Gig Wage plans to introduce a new debit card with no monthly fee, free online bill pay, and free cash withdrawals at more than 19,000 ATM locations; free cash pick-up at over 7,000 retail locations nationwide; and other products and tools designed for gig workers and their employers.
Additional participation in the round comes from Continental Investors, Techstars, Revolution’s Rise of the Rest Seed Fund, and others.
About Gig Wage
Gig Wage builds comprehensive technology products that take into consideration how money moves through the entire gig ecosystem, not just how it gets to workers. Gig Wage’s technology is shaping the modern financial infrastructure for the future of work by tackling the complex challenge of handling contractor payroll, payments, and compliance.
Gig Wage considers accounts receivable, banking, accounts payable, consumer spending and, above all, the people that the money impacts. The company’s unique technology enables employers to instantly pay 1099 workers with more control, flexibility and scale, while simultaneously offering independent contractors a convenient and efficient way to receive payments.
Founded in 2014 by Craig J. Lewis and headquartered in Dallas TX, Gig Wage helps businesses pay 1099 workers in all 50 states.
About Green Dot
Green Dot Corporation (NYSE: GDOT) is a financial technology and registered bank holding company committed to transforming the way people and businesses manage and move money, and making financial wellbeing and empowerment more accessible for all.
Green Dot’s proprietary technology enables faster, more efficient electronic payments and money management, powering intuitive and seamless ways for people to spend, send, control and save their money. Through its retail and direct bank, Green Dot offers a broad set of financial products to consumers and businesses including debit, prepaid, checking, credit and payroll cards, as well as robust money processing services, tax refunds, cash deposits and disbursements. The company’s Banking as a Service (“BaaS”) platform enables a growing list of America’s most prominent consumer and technology companies to design and deploy their own customized banking and money movement solutions for customers and partners in the US and internationally.
Founded in 1999 and headquartered in Pasadena, CA, Green Dot has served more than 33 million customers directly, and now operates primarily as a “branchless bank” with more than 90,000 retail distribution locations nationwide. Green Dot Bank is a subsidiary of Green Dot Corporation and member of the FDIC.