Payfare, a Canadian fintech company, offers financial services specifically designed for gig workers.
Addressing challenges faced by many in the emerging gig economy, the Toronto firm provides immediate access to earnings, bypassing traditional waiting periods and reducing reliance on payday loans, overdrafts, and credit cards.
A significant number of gig workers live paycheck to paycheck, with 78% facing challenges covering unexpected expenses, according to the company. Payfare’s services seek to alleviate financial strains by allowing workers faster access to their earnings through a digital banking platform.
On the business side, Payfare proposes a system that minimizes time and resources on payouts, potentially enhancing productivity and efficiency. Financial stress, which can reduce worker productivity, is identified as an area of concern that Payfare aims to mitigate.
Businesses partnering with Payfare can expect a range of features. These include reduced processing fees for payouts, automated payout processes, and streamlined onboarding. Additionally, Payfare provides an API suite and flexible integration options to accommodate varying business needs.
Payfare operates across various sectors of the gig economy, from ride-sharing to food delivery, extending its services globally.
The firm’s recent quarterly earnings report highlights key figures for Payfare. A revenue of $46.5 million was reported for Q2 2023, indicating a 43% increase from the same quarter in the previous year.
“We were focused on building new partner integrations in the second quarter after successfully winning two RFP processes while expanding profitability,” stated Marco Margiotta, CEO of Payfare. “Our business development pipeline remains active with opportunities in the gig economy and Earned Wage Access for regular employers. We look forward to sharing more as these programs get closer to commercialization.”
Trading publicly on the TSE as PAY, the profitable fintech now has 1.2 million users. Shares are up more than 40% on the year.