The Clair on-demand pay solution is powered by bank Pathward, N.A.

Fintech company Clair has secured $175 million in funding to launch a free, on-demand pay solution backed by an FDIC-insured bank. The program, called Pathward, allows front-line workers to take wage advances and provides access to Clair Spending and Savings Accounts.

The funding round included $25 million in equity led by Thrive Capital, bringing Clair’s total venture capital funding to $45 million. (Clair)

In addition, Clair has announced a consumer lending program in partnership with Pathward, where $150 million will be allocated. Pathward, the partner bank, holds the FDIC-insured accounts for Clair and provides wage advances to front-line workers. Clair acts as a facilitator, connecting customers with loans directly issued by Pathward when they take a wage advance. The lending process occurs between Pathward and Clair’s customers, as stated by the company.

Clair plans to use the funds to expand its team and accelerate adoption among hourly workers. The company’s mobile banking app helps customers avoid overdraft fees and high-interest payday loans. The Clair Debit Mastercard also gives employees the opportunity to receive 3% cash back on gas and groceries purchased.

Clair has also introduced Clair for Employers, offering free financial wellness benefits for employees. The company has partnerships with platforms like TCP Software’s Humanity Scheduling and When I Work. Employers such as EverView, Viking Ranges, and SanStone Health & Rehabilitation have embraced Clair’s solution to attract and retain employees.

The partnership with Pathward enables Clair to offer its services as a consumer lending program.

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