Highline looks to expand after $13M Series A
Dallas-based payments FinTech Highline Technologies announced Monday (August 22) that it has raised $13 million in a Series A funding round.
The round was led by Jump Capital, Costanoa Ventures, Foundation Capital and other investors. According to the press release, the new funds will be used to add employees, launch strategic partnerships and expand the use of the products and services.
Founded in 2020, Highline offers a platform that allows consumers to automate bill payments directly from their paychecks, helping them avoid missed payments and overdraft fees.
The company said its solution allows consumer lenders to “improve portfolio performance, allowing them to expand approvals, reach more potential customers and increase revenue while reducing risk.” Highline is also expanding payroll-related lending to any asset class, something it said has traditionally been limited to personal loans.
“When we talked to lenders, we heard a consistent refrain – they all realized that connecting borrowers’ wages would drastically reduce defaults and significantly improve their competitive positions,” said Yelena Shkolnik, partner at Jump Capital. “Most had tried and failed to take advantage of deductions, were challenged to properly manage cash flow or offer adequate employer coverage.
“In Highline, lenders have the solution they’ve been looking for and a powerful end customer experience to transform lending.”
Research from PYMNTS has found a growing demand for digital pay among US workers, with 80% of them saying they should be able to access their pay at the end of the workday, rather than at the end of a two-week pay period.
See also: How digital payments can benefit workers and employers
Meanwhile, 78% of those workers said that on-demand pay would increase their loyalty to an employer, a finding supported by another survey that showed 42% of unemployed people would find immediate pay appealing when looking for a new job.
Employers can also benefit from instant pay, as a study found that offering access to same-day pay can reduce employee turnover by up to 27%.
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NEW PYMNTS SURVEY FINDS 3 IN 4 CONSUMERS WITH STRONG DEMAND FOR SUPER APPS
About: The findings of PYMNTS’ new study, “The Super App Shift: How Consumers Want To Save, Shop And Spend In The Connected Economy”, a collaboration with PayPal, analyzed the responses of 9,904 consumers in Australia, Germany, the UK and the US and showed strong demand for a single multi-functional super app instead of using dozens of individuals.
