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$170B Liquidity Problem: Ending the Paycheck-to-Paycheck Cycle

Alex Bradford, Rain's Co-Founder & CEO, shares the truth of the problematic paycheck-to-paycheck cycle.
March 26, 2024

Most Americans live paycheck to paycheck and don’t have enough money for a rainy day.

It’s a $170B Liquidity Problem: Americans spend $170B a year just waiting for their next paycheck. That includes fees from payday loans, bank overdrafts, subprime credit cards, and various types of late payments.

This means working Americans spend more each year just waiting for their next paycheck than they have in savings.

This Liquidity Problem is a terrible situation. For both employees and employers.

If you can’t afford gas or to fix a flat tire, you’re more likely to miss work.

If you can’t afford treatment for sickness or an injury, you’re more likely to miss work.If you can’t afford childcare, you’re more likely to miss work.

If you’re out of money, you’ll be stressed, less well, and less likely to be productive on the job.

The Liquidity Problem also costs employers in terms of employee turnover costs and lost productivity.

In industries with high turnover (e.g., retail, restaurants, hospitality, health care) employers pay $4-15k in turnover costs per employee per year.

Rain solves this problem by making it easy for employers to enable their employees to get paid instantly after each shift.

Employees who are paid today are more likely to show up to work today.  It’s as simple as that.

This isn't just about financial liquidity. It's about restoring dignity, reducing stress, and fostering a more productive, present workforce.

With Rain, we're not just solving a financial problem. We're unlocking the potential of the American worker.

—Alex Bradford, Rain Co-Founder, CEO

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