More than 170 million Americans across every income level live paycheck to paycheck. Wages have stagnated, everyday costs have gone up, debt levels are untenable, and people are struggling to make ends meet.
In order to address this growing problem, and based on the unprecedented success of the company’s national program with Walmart, Even announced new plans today to dramatically expand the company’s financial services with a $40 million round of funding. This new funding round is led by Keith Rabois of Khosla Ventures, with participation from Valar Ventures, Allen & Company, Harrison Metal, Ron Conway, Silicon Valley Bank, BCVP and others.
Even integrates with attendance, payroll, and banking systems to understand and directly impact the complete picture of financial health:
- Instantly budgets so you know how much is okay to spend
- Safely solves cash flow problems with Instapay (on-demand access to wages)
- Automatically saves money to make progress towards goals
Together, these core products reduce accidental overspending, eliminate the cost of interest and loans, and automatically save the newfound money—so people can move from “paycheck to paycheck” to “paycheck to progress.”
Jon Schlossberg, CEO of Even: “High cost financial services such as credit card interest short-term loans, and overdraft fees cause Americans to spend $240 billion every year in unneeded costs. By contrast, Even's business model is set up so we only profit when our customers do. We charge a flat, predictable monthly subscription, like Netflix. In exchange, our members get a new set of financial services, built from the ground up to fit into busy people's lives, so they actually use them—to spend smarter, avoid debt, and save money. If people see value in those services and keep using them, we profit; if they don't, we don't.”
Even provides a subscription-based monthly membership service, ensuring that Even members are never charged interest, never pay hidden fees or transaction costs, and are never shown promotional credit cards or other products that entice them to take on debt. This subscription model aligns the success of Even as a business with the success of each individual user, because Even makes more money when its users become more financially healthy and use its products like Instapay less frequently. The company has also guaranteed it will not sell its members’ data.
In January, Even launched a relationship with Walmart to offer Even financial wellness tools to over 1.4 million Walmart U.S. associates nationwide. Since that launch just 6 months ago, more than 15 percent of Walmart’s U.S. workforce has started actively using Even to track spending habits and help manage their overall budget. Adoption of Even has also proven to be equivalent across both hourly and salaried Walmart associates.
Daniel Eckert, SVP, Walmart Services & Digital Acceleration, Walmart U.S.: “We are very pleased with the early results of our program with Even, and continue to see an overwhelming response to it from our associates. By working together, we are able to offer each and every Walmart associate more control and a better understanding of how to make the most of their hard-earned money. It’s a tremendous benefit that clearly sets Walmart apart, and we believe its early popularity will only grow in the years to come.”
Even, through its partnership with PayActiv, also provides Walmart associates with access to their earned wages on-demand, ahead of scheduled paychecks, through a feature called Instapay. Unlike costly payday loans, Instapay is based on the money Associates have already earned, and there are no transaction fees or interest for using Instapay.
Keith Rabois, General Partner at Khosla Ventures: “We’ve been with Even from the start because their mission and business model are so perfectly aligned: they succeed as a business when their users succeed financially. The overwhelmingly positive response to their partnership with Walmart only made us more confident that the Even team is onto something huge, which is why we decided to increase our investment and partner with them to grow rapidly.”
Based on the success of the company’s partnership with Walmart, Even has received considerable interest from Fortune 500 employers to offer Even’s financial wellness tools to their employees, signaling a shift towards employers providing financial wellness benefits in addition to the health benefits already commonplace in American companies. With their new financing Even plans to significantly expand its operations in order to service the newfound demand. The company plans to double its workforce, with a focus on engineering and sales, and will also open a new corporate office on the East Coast in the coming year.