Small logo Subscribe to leading news on impact investing. Learn More
The Brief Originals Dealflow Signals The Impact Alpha Impact Voices Podcasts Agents of Impact Open
What's Next Capital on the Frontier Measure Better Investing in Racial Equity Beyond Trade-offs Impact en las Americas New Revivalists
Local and Inclusive Climate Finance Catalytic Capital Frontier Finance Best Practices Geographies
Slack Conference Calls Events Contribute
The Archive ImpactSpace The Accelerator Selection Tool Network Map
About Us FAQ Calendar Pricing and Payment Policy Privacy Policy Terms of Service Agreement Contact Us
Locavesting Entrepreneurship Gender Smart Return on Inclusion Good Jobs Creative economy Opportunity Zones Investing in place Housing New Schooled Well Being People on the Move Faith and investing Inclusive Fintech
Clean Energy Farmer Finance Soil Wealth Conservation Finance Financing Fish
Innovative Finance
Personal Finance Impact Management
Africa Asia Europe Latin America Middle East Oceania/Australia China Canada India United Kingdom United States
Subscribe Log In

Hastee secures £208 million to bridge U.K. workers’ wage gap

ImpactAlpha, December 10 – British workers are struggling with minimal savings and mounting debt, much like American workers. Adding to the pressure, they often have to budget around monthly rather than bi-weekly paychecks.

“They’re basically offering interest free credit to their employers,” for 30 days at a time, James Herbert, founder of fintech company Hastee, tells ImpactAlpha.

U.K.-based Hastee is one of a handful of companies helping workers alleviate financial stress by allowing them to tap unpaid wages as they earn them. The company partners with small and large employers alike, fronting cash to their workers as they need it, then recouping the money through their clients’ payroll.

Umbra Capital and IDC Ventures are backing the company’s growth with £8 million ($10.5 million) in equity and £200 million ($263 million) in debt financing. 

How it works

Employees can withdraw up to £100 in wages for free before payday. After that, they pay a flat fee of 2.5% for every transaction. “It just increases the frequency of pay,” explains Herbert. “There’s no interest or chance you’ll miss repayment.” 

Since launching in 2017, most of Hastee’s app usage stems from the “low-paid and variable” workforce, who use Hastee to cover emergency bills and travel costs, Herbert says.

“We’re also finding there’s a direct link to productivity,” he adds. “Employees are actually doing more work than they were before, especially in the gig workforce. They’re earning more as well.” 


Also in the U.K., Wagestream raised £40 million for a similar concept and Salary Finance raised $33 million this year to help workers avoid payday lenders. (Salary Finance is making a push into the U.S. as its second market.) In the U.S., savings-focused fintech company Even also offers earned wages payments. 

You might also like...