NAB Ventures has joined a $2.5 million funding round in Earnd, a Sydney startup that allows employees to draw down their salary in installments.
Earnd is targeting the 46% of Australians who live paycheque-to-paycheque, enabling them to access their pay as they earn it and minimise the need for emergency cash loans, such as those from payday lenders.
NAB was joined in the round by Pocketbook founders Alvin Singh and Bosco Tan, BPAY CEO John Banfield, Andrew Birch, MYOB COO and angel investor Rob Lederer.
Josh Vernon, Earnd co-founder and CEO says: “Giving access to pay that has already been earned has the potential to fix the spiralling debt cycles linked to current financial products. There is a clear need for the quick access to funds in times of crisis, but a lack of safe and fair platforms facilitating this.”
Earnd works with employers - who may charge a fee for the service - to integrate its platform into payroll, time and attendance systems. Once switched on, employee funds are transferred in real-time according to user-designated timelines input via a mobile app.
NAB Ventures managing director Todd Forest says: “We loved how the founders were focused on financial wellness. This is a unique solution that enables people instant access to their pay. Earnd allows this to happen in a frictionless way and enhances employee financial resilience and higher engagement with their employer.”
Editorial | what does this mean?