Banking startup Clearbanc launches new instant payment tool for Uber drivers
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This summer, Y Combinator created a new program called YC Fellowship, to invest in start-ups outside of its accelerator program. Today, the first of 33 companies to be accepted has been launched. Called Clearbanc, it’s a banking service specifically designed to help self-employed Americans get paid faster.
Founded by Andrew D’Souza, Clearbanc wants to attract independent contractors, freelancers and 1099 workers to the United States. âMore than 50 million Americans are choosing self-employment, but traditional banks and financial service providers have not been able to adapt to this cultural and economic change,â D’Souza said in a statement Press.
The company is targeting Uber drivers with its inaugural product. Using a Visa debit card, they can deposit their earnings instantly into their account. Each Uber driver who signs up with Clearbanc is charged $ 2 for each day the service deposits funds into their account (after the seven-day free trial period has passed). Drivers are only billed for working days and there is no contractual period.
D’Souza said that with more than a million drivers around the world, Uber has the largest network of self-employed workers, which makes it an attractive market. He told VentureBeat that on-demand private car service is naturally what Clearbanc wants to do, and additional opportunities are being explored for the future.
Uber hasn’t had an offer like this for its drivers, but Lyft has, having recently partnered with Stripe for instant deposits. There have been conversations between Uber and Clearbanc but nothing that comes close to a formal partnership. However, D’Souza said his customers became more active as drivers after signing up, likely due to faster turnaround times for revenue delivery.
Looking at the Clearbanc website, it looks like Lyft and Instacart will be supported soon, which poses an interesting issue for Clearbanc – how will it differentiate itself if the services it targets already have instant payment functionality. , like Lyft?
Cards provided by Clearbanc are issued by MetaBank and the company is FDIC insured.
As mentioned earlier, Clearbanc is the first company to come out of the YC Fellowship and will certainly not be the last. D’Souza told us that his experience has been great so far: [Y Combinator] cohorts. We have chosen to participate to gain access to the large network of YC and alum partners, including many on-demand platforms that we hope to partner with. YC has been present from the early stages of so many incredibly important companies – we think Clearbanc can be a very important company and we wanted to harness that knowledge.
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