Payroll companies will bring earned wage access in-house within 5-7 years
Tate Hackert · He made his first loan at 16. Now his fintech startup does $50M+ ARR—here’s how. | Tate Hackert, ... · PMF Show · Dec 2, 2024 · at 24:45
Tate Hackert, co-founder of Earned Wage Access platform ZayZoon, discusses whether payroll companies will eventually disintermediate third-party EWA providers.
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“And what you're saying is probably going to be the re reality in, in five, seven years.”
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More from Tate Hackert
Payday lenders lose 15% of all lent capital to defaults
“Payday loans are really expensive because of three reasons. One brick and mortar. So, so just being storefront. To old school administrative practices, they have just like terrible ways of collecting data, terrible ways of processing that data. And then third,…”
ZayZoon was the first to offer wage access via payroll integration
“Zayzun was first to do this with an actual payroll company using that payroll integration as a way to extend those funds.”
Hackert issued $250K in uncollateralized peer-to-peer loans by age 23
“Half the time or more than half the time, I didn't even take collateral. And so a lot of it was just like pure trust. And I did over a quarter million dollars of these loans for an age of Call it 16, 17 to about 23.”
Delayed pay cycles are effectively interest-free loans to employers
“So actually that employee is effectively giving an interest-free Loan to their employer in, in a really funny roundabout way.”