A financial technology company that connects banks to consumers’ paychecks has announced it has raised an additional $40 million in funding, just five months after it raised $22 million, according to a published report. The newest round of funding was labeled by the company — called Atomic — to be “pre-emptive,” meaning it wasn’t technically out raising capital, but was instead approached by investors who see the value in what the company is doing and wanted a piece. For companies in the accounts receivable management industry, Atomic offers the opportunity for consumers to repay their financial obligations automatically from their paycheck, without the consumer needing to do anything.
Atomic, which has raised $80 million so far, uses technology known as APIs (consider them like electronic handshakes between systems, platforms, and networks) to connect consumers to their financial data, allowing them to verify income and employment, automate direct deposits, access earned but unpaid wages, and repay financial obligations, all via an app.
Working with 70 different banks, credit unions, and fintech companies across the country, Atomic currently has access to 120 million Americans, or about 60% of the country. Revenue at the company was up twentyfold in 2021, compared with the fourth quarter of 2020, when the platform went live.
In a published report, the company cited an example of a customer in the rent space who wanted to allow consumers to repay their rent obligations directly from their paycheck.
“Our goal is to build a fintech infrastructure that enables a new generation of bank accounts and transforms banking applications into consumer-centric platforms,” said Jordan Wright, a co-founder of Atomic, in a statement.
Atomic said it would use the new round of funding to expand the size of its team and working on “pioneering new solutions.”
