Rain, an employer-sponsored platform providing earned wage access (EWA) and other financial wellness services, announced a signed partnership agreement with Workday, Inc. a leading provider of solutions to help organizations manage their people and money.
Rain’s EWA program allows employees to access a portion of their earned wages before their regular payday, providing them with financial flexibility and helping them avoid high-interest loans and overdraft fees.
Employees who used Rain in 2023 are estimated to have saved a total of $51 million by avoiding overdraft fees and the interest associated with payday loans. Customers that offer EWA to their employees with Rain have seen up to 2x more job applications and have reported a 49% increase in retention after eight months on average.
As inflation continues to have a significant effect on the economy, fewer middle-income households are confident about their ability to make payments, save, or plan large purchases. Nearly half of Americans have $500 or less in savings and spend billions on payday loans, high-interest credit cards, and other predatory financial products while waiting for their next paychecks. Rain’s EWA solution enables workers to access their wages before the official paycheck disbursement date, giving them control over their financial lives.
As a Workday Partner, Rain will leverage a direct API integration with Workday Human Capital Management (HCM) to provide Workday customers with a simple EWA experience, alongside fast and easy onboarding.
Workday HCM is a unified system that helps enable organizations to make faster decisions, gain operational visibility, prepare for future talent shifts, and build effective teams.
“Our partnership with Workday allows us to support its customer base by providing their employees with tools and resources that will help them achieve financial well-being. As workers continue to face challenges posed by the limitations of traditional pay cycles, we are looking forward to providing them with much-needed flexibility and relief. Additionally, we look forward to our EWA solution making a positive impact on employers’ potential for attracting and retaining talent and building stronger workforces,” said Alex Bradford, chief executive officer of Rain.
This partnership is the latest milestone in Rain’s expansion journey. Since its inception in 2019, Rain has onboarded over 2 million employees and distributed over $1 billion in wage advances. The company announced its $116 million Series A funding round in March 2023, which was the largest in HR tech history. Rain also secured $300 million in financing from Clear Haven Capital Management for a new credit facility. Recently, the company announced a partnership with global modern card issuing platform Marqeta to deliver more robust earned wage access solutions through embedded finance.
