FlexxPay Raises Seed Funding To Launch In The UAE
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FlexxPay, a financial wellness platform, has raised an undisclosed funding from a group of individual and corporate investors to launch the platform in Dubai, with KSA slated next later this year.
Founded by Michael Truschler and Charbel Nasr, the Dubai-based startup allows companies to offer salary advances to their already earned salary whenever they need to. Though similar applications received positive traction in the US and UK, it’s a distinct offering in the GCC as it empowers employers with a dynamic salary payment platform. The startup has already integrated its network with Abu Dhabi Commercial Bank (ADCB) to allow automated processing of salary advance requests on behalf of the employer.
Traditionally, an employee receives a salary at the end of each month, making the workforce at risk of living from paycheck to paycheck. This, says co-founder and CEO Truschler says, was the motivation for the venture. “Our mission is to fix the pay frequency problem at its root by providing businesses and their employees with an instant pay platform. We empower those who need it the most to access a portion of their already earned salaries whenever they need to.”
The cloud-based tech solution aims to help employees to overcome financial deficits between paydays. With the platform, employees can access a portion of their “already earned but currently unpaid salary” at zero interest rate, with a fixed nominal transaction fee required. According to its release, the platform can perform bank transfers and start a savings plan, among others. Advances and fees are then paid by the employer to FlexxPay during the due salary date at the end of the month, with employees receiving their salaries less as it was already paid out to them earlier in the month.
For employers, there’s no cost or risk or system integration required, as well as no changes to the payroll cycle or impact on cash flow, plus it ensures talent retention and financial security, and reduces the workload of HR and finance departments. For employees, onboarding takes a couple of minutes, with no interest and credit checks necessary, along with additional employee benefits including a complimentary savings plan (and a soon-to-be launched gift cards and loyalty points program).
FlexxPay has even piqued the interest of another startup- one of the first companies that will be utilizing FlexxPay is Dubai-based tech-driven logistics enterprise Fetchr. Founder and CEO Idriss Al Rifai is positive on its impact on the workforce, “By offering FlexxPay, we remove financial stress from our employees and empower those who need it the most to access a portion of their already earned salaries whenever they need it.”