“The rise in the importance of EWAs in recent years is a sign that workers’ wages are not going as far as they used to,” noted Jordan Wright, Atomic CEO and co-founder. “We anticipate that workers will demand financial health benefits that help them anticipate bill payments and scenarios that promote repeated use of EWA between payment cycles. Our partnership with Hydrogen enables organizations to quickly and seamlessly launch applications to help workers cope with financial stress and to enable employers to retain and attract talent. ”
“This partnership is a unique opportunity for organizations to quickly bring personalized debit card programs for workers to market,” said Evy Natan, Senior Partnerships Manager at Hydrogen. “In turn, these card programs create opportunities to monetize interchange fee revenues, versus interest fees or penalties, which over time encourage recurring usage and loyal customers.”
The announcement comes at a precarious time in the US job market as wages are shrinking and unemployment is nearing a half-century lows of 3.7% in August, according to labor departments. Workers are financially strained due to rising costs of household goods due to inflationary pressures. At the same time, the cost rate exceeds wage growth, prompting workers to seek alternatives to meet invoice deadlines or incur commissions. Workers are also using employer-sponsored wage access (EWA) benefits and direct-to-consumer solutions to access wages earned but not paid.
The Hydrogen-Atomic partnership produces numerous value propositions for Hydrogen and its customers. Gig economy companies can leverage Hydrogen’s Atomic widget to enable their 1099 employees to access pay with a great user experience to boot. Employers can offer automatic deposit exchange and automated Hydrogen card financing, earning consumer rewards and cashback on purchases and earning interchange profits for employers. Meanwhile, consumer-centric organizations can redirect profits earned from interchange fees to community building and other needs.
For both companies, the partnership takes Atomic and Hydrogen further in their shared vision of bridging the financial health gaps for all workers by fueling the next generation of financial wellness benefits.
Atomic is the market-leading provider of payroll connectivity, trusted by over 125 financial institutions, companies and fintech partners, including 12 of the largest fintech apps offering a digital neo bank, alternative loans, cryptocurrency exchanges and digital intermediaries. Atomic’s payroll integrations provide the infrastructure to connect consumers to their financial data, automate the setup and update of direct deposits, digitize income and employment checks, repay financial obligations from paychecks, access wages earned but not paid and take advantage of the tax return.
Atomic simplifies complicated payroll integrations with a suite of API solutions that covers over 480 unique payroll connections, including historical payroll providers, bespoke enterprise solutions, modern HR technology providers, gig-economy platforms, and government systems. Atomic’s payroll APIs cover 75% of the US workforce with a combined reach of 125 million workers.
Atomic was shortlisted for the 2022 Fintech Breakthrough Award for Best Banking Transaction Solution, recognized as Top Work Places 2022, and raised $ 78.6 million from investors including Mercato Partners, Core Innovation Capital, Portage and Greylock. For more insights into the intersection of fintech and payroll, you can subscribe to the Atomic’s Intelligence newsletter.
Hydrogen is a simplified embedded finance. We enable businesses to quickly launch unencrypted white-label debit cards and a single all-inclusive platform. No fintech experience is required. Launch new programs, earn new revenue, and hit the market in weeks. Our latest Web3 offering consists of white label cryptographic debit cards that can be spent at millions of merchants around the world. This new offering is called Chainswipe and will help the next 100 million cryptocurrency users by making it easy and intuitive for them to spend cryptocurrencies in their wallets.
Hydrogen has been awarded as a technology that changes the world by Fast Company, FinTech Startup of the Year by KPMG Luxembourg and winner of BBVA Open Talent USA. Hydrogen is also a graduate of the StartPath, MassChallenge FinTech, and Plug and Play FinTech Mastercard acceleration programs. Hydrogen is committed to enabling organizations to develop financial products for customers in the United States and around the world. For more information, visit https://www.hydrogenplatform.com and follow us Twitter and Linkedin.