Payroll software platform PayCaptain partnered with ClearBank, the enabler of real-time clearing and embedded banking, to power real-time salary payments and launch a new embedded savings service. The collaboration will initially serve more than 50,000 employees across PayCaptain’s network of over 300 corporate clients, with a focus on the hospitality and retail sectors.
The partnership marks a significant milestone for ClearBank, as PayCaptain becomes its first embedded banking partner in the corporate sector. The move signals the bank’s ambition to deliver embedded financial services at the point of need across a wider range of industries.
Addressing the UK’s savings gap
The new embedded savings service is designed to help address the low levels of financial resilience among UK adults. The announcement cited research showing that 23 per cent of UK adults have £200 or less in savings, while one in six have no savings at all. This lack of a financial safety net can force individuals to turn to more expensive forms of credit, such as loans or overdrafts, in an emergency.
To tackle this, PayCaptain will use ClearBank’s infrastructure to launch an embedded savings service for employees at its corporate clients. Through the PayCaptain mobile app, employees will be able to automatically allocate a portion of their pay directly into a savings account, giving them a simple way to build their savings.
By leveraging ClearBank’s regulated banking platform, the embedded savings accounts will offer competitive interest rates and the security of being protected by the Financial Services Compensation Scheme (FSCS).
Modernising salary payments
Emma Hagan, chief executive officer at ClearBank UK, commented on the partnership: “Delivering our first embedded banking partnership with a corporate customer reflects our ambition to bring our platform to new customer segments, enabling the delivery of differentiated services at scale. PayCaptain’s shared belief in the power of technology to improve financial outcomes has allowed us to develop an innovative system that can modernise salary payment options.”
Simon Bocca, chief executive officer at PayCaptain, said: “We’re on a mission to empower individuals to take control of their earnings by providing the tools and insights they need to manage their finances efficiently. ClearBank was the natural choice to power our embedded savings service with their combination of resilience, scale and technology innovation. This is just the first step in our partnership. We’re excited to have our customers using ClearBank’s services and look forward to collaborating on more innovative financial solutions together”.
PayCaptain, a certified B Corp founded in 2020, provides a cloud-based payroll software solution that integrates payroll, banking, and financial wellness tools. ClearBank is a purpose-built, technology-enabled clearing bank that provides real-time payment and banking services to its partners.
