Atomic Repay Allows Customers to Embed Repayments From Paychecks

Payroll connectivity solutions platform Atomic and embedded finance company Bond Financial Technologies on Thursday (June 9) broadened their relationship with the debut of Repay, an Atomic offering that lets customers embed repayment of their financial obligations from their paychecks.

Repay allows consumers to make recurring payments, breaking up monthly rent or repaying a loan in smaller installments, to save financially-strained consumers from taking out loans or missing repayments. When used as an employer benefit, the administrative costs are assumed by employers, the joint press release said.

“Repay gives consumers the tools to take control of their personal finances, both income and liabilities, and for customers to proactively tailor products to their user’s financial profile with payroll data,” Jordan Wright, co-founder and CEO of Atomic, said in the release.

“For financially vulnerable consumers, it works as a fractional repayment plan that gives them a lifeline to pay for things they need without having to risk falling behind on bills and incurring an avoidable fee,” he continued. “Meanwhile, our customers now have a novel option to build goodwill with consumers by offering better interest rates while minimizing default and late repayment risks.”

Atomic uses Bond’s embedded finance infrastructure to create and open user bank accounts and avoid integration with a sponsor bank, also managing know your customer (KYC), ongoing transaction monitoring and compliance.

Repay connects payroll information for users and Bond opens a demand deposit account (DDA), calculates the fractional deposits, manages payment according to the due date and automatically makes the payments on time.

The system monitors all deposits and distributions, provides continuous access to activities and usually refunds overpayments to the user in under a week.

“Atomic and Bond together bring a seamless, integrated solution to a major problem that often leaves employees confused and employers concerned about their workers’ financial well-being,” said Roy Ng, CEO and co-founder of Bond.

Related: Payroll Solution Firm Atomic Adds $40M in Series B Funding Round

In March, Atomic announced it had raised $40 million through a Series B funding round that will help the company continue to build its payroll connectivity ecosystem.

Atomic said it will use the fresh capital to add to its own team and create new solutions, including the ability for consumers to tap earned but unpaid wages ahead of their pay cycle and access their payroll data with passwordless authentication through its proprietary Uplink technology.