In this particular announcement, which is posted in Yahoo Finance, we learn that Comdata will be acquiring the consumer payroll processor named SOLE Financial, a mature 2004 startup based in Portland, Oregon. Comdata is more well known as a fleet card and B2B payments service provider, but also has a prepaid and payroll business component. Comdata launched a new digital payroll product called Fintwist several months ago, so this seems to be a logical combination with SOLE to address unbanked and underbanked employees for business constituents. In this case SOLE targets more of the SME space.
‘“Through this acquisition, we can grow Fintwist’s footprint among small to medium businesses while continuing to serve our larger enterprise customers,” commented Brian Radin, president of Comdata’s Prepaid and Payroll Card division. “SOLE will serve as a great strategic addition to our payroll card business, extending Fintwist’s reach as it helps companies provide superior value to modern workers and strengthen the employer-employee relationship along the way.” ‘
Although we have not yet received a briefing on the Fintwist solution, it is a digital and mobile-app based payments payroll account, allowing employees to initiate and execute digital payments (including bill payments) without the need for a direct banking relationship. Although the mobile wallet aspects are assumed to be available for proximity, a physical card is also provided as needed. Financial inclusion and sustainability are themes mentioned as well, since the app has certain financial management tools, and the SOLE entity promotes paperless corporate environments (even involving tree planting).
‘With the combined strengths of Comdata and SOLE, Fintwist will empower all types of companies with the ability to provide their workforce immediate access and full control of their wages, as well as robust cardholder education and financial management tools. Fintwist gives employees a better way to get paid, make payments, send money to friends and more – all within a highly secure digital payment solution…… Fintwist comes with no fees to employers, delivering new efficiencies and cost-savings in payroll processing that transform payroll from a cost center to an empowering employee benefit. The addition of SOLE will provide future Fintwist clients with increased efficiencies and a seamless onboarding experience, through accelerated online employee enrollment and other added capabilities.’
Overview by Steve Murphy, Director, Commercial and Enterprise Payments Advisory Service at Mercator Advisory Group
