Wage, a provider of infrastructure software solutions, has raised $5 million in funding. Gradient Ventures led the round with participation from other investors that include 8VC, Pear Ventures, Bloomberg Beta and CoFound Partners.
SAN FRANCISCO, April 13, 2021 – Wage, an infrastructure software solution that lets people seamlessly and securely share their payroll data with third parties, announced today the close of $5M in funding to scale customer acquisition and support additional payroll data partnerships. The round was led by Google’s AI-focused venture fund, Gradient Ventures, with follow-on investment from 8VC, Pear Ventures, Bloomberg Beta, CoFound Partners, and executives from SoFi, Public, Zillow, and Affirm.
Wage’s best-in-class Application Programming Interface (API) infrastructure delivers direct-source payroll data instantly, with a credential-less process as lightweight as a credit check – no clunky login flows or document uploads are required. By leveraging direct data integrations with leading payroll partners, the company enables consumers to quickly and securely share their data with third parties they choose – such as lenders, landlords, hiring managers, and countless other fintech apps – with just a click.
Originally founded as Verix in 2018, Wage has been quietly building its network of payroll partners. Co-founders Ben Prawdzik and Shaan Patel leveraged their experiences at companies including Gusto, Goldman Sachs, Box, and Bain Capital when meticulously designing the platform to meet the demands of the rapidly evolving fintech space. Wage works with payroll companies covering over 30 million employees who work at firms such as Amazon, Delta Airlines, Best Buy, Starbucks, Dell, Hyatt Hotels, and tens of thousands of others.
“Historically, payroll data access has been a burdensome process for financial services providers, consumers, and employers,” said Ben Prawdzik, CEO and co-founder of Wage. “Our solution is comparable to a credit check. We completely remove the friction point of relying on consumers or their employers to act, whether uploading a document, entering data, taking a phone call, or going through a login flow.”
Customers using Wage’s API can reliably access payroll data at ultra-low latencies, and massive scale because the company’s integrations with leading payroll and HR systems are direct connections. This is in contrast to other startups in the payroll data market, who often access data by asking consumers to provide their payroll account username and password before deploying bots to log into the consumer’s account via the public internet – a process known as “web scraping.” A scraping-based approach has several drawbacks compared to Wage’s direct-access model: consumers often can’t remember their payroll login information, and bots often fail when payroll systems deploy anti-scraping tools or change their websites.
Wage is designed with security and transparency at its core. The company uses enterprise-grade encryption, is Fair Credit Reporting Act compliant, and SOC 2 Type 2 certified. Wage doesn’t bulk-download payroll data, but instead routes it on a one-time basis from payroll systems to the specific third party a consumer has authorized. By comparison, legacy solutions from credit bureaus often warehouse vast quantities of consumer data under failure-prone security protocols and opaque consent practices.
Zachary Bratun-Glennon, a Partner at Gradient Ventures said, “A great deal of credit decisioning is a black box that penalizes people with little-to-no credit history and doesn’t capture one’s full potential. Wage provides accurate and up-to-date payroll data seamlessly and securely – creating a more equitable and inclusive financial ecosystem, and empowering consumers, financial services, employers and others with efficiency and control over the use and access of their data. Wage has seen impressive growth since its inception, and we look forward to supporting its momentum.”
For more information on Wage, please visit www.wage.com
Wage, Inc. is an infrastructure API company that lets people seamlessly and securely share their payroll data with third parties they authorize – such as lenders, landlords, hiring managers, or other fintech services. Through partnerships with the leading payroll providers, human capital managers, and professional employer organizations, Wage provides direct-source payroll data, making it faster and more cost-effective than manual alternatives. To date, the company works with payroll companies covering over 30 million employees who work at firms such as Amazon, Delta, Best Buy, Starbucks, Dell, Hyatt, and tens of thousands of others. Headquartered in San Francisco, Wage was founded in 2018 by Ben Prawdzik and Shaan Patel.