Clearbanc has launched a new type of banking service for the millions of self-employed Americans.
Its first product is a service for Uber drivers that allows them to get paid instantly instead of waiting up to 10 days.
With Clearbanc, Uber drivers receive a Visa Debit card where their earnings are deposited instantly so they get paid every time they drive.
Founder Andrew D’Souza (formerly of Top Hat and Nymi) says, “It’s time for banks to catch up to today’s reality.”
“Over 50 million Americans are choosing self employment, but traditional banks and financial service providers haven’t been able to adapt to this cultural and economic shift,” he explains.
According to D’Souza, drivers are lining up to join Clearbanc and hundreds more are on the waitlist.
Every Uber driver who signs up with Clearbanc receives a seven-day trial period free of charge. After that, the cost is $2 for each day that Clearbanc deposits funds into the driver’s account. Drivers are only charged for the days they work and they can cancel anytime.
The startup is already working on ways to expand its service to other freelancers and self-employed professionals facing similar financial challenges: unstable cash flow, tax planning, variable income, and limited borrowing options.
In addition to providing clients with instant pay, Clearbanc will also provide suggestions on how clients can earn more income to meet their financial goals and save money on taxes.
With this announcement, Clearbanc is the first YCombinator Fellowship company to unveil its work publicly. Accepted into the program this year, Clearbanc is one of 33 startups, selected from over 6,500 applicants, who are receiving mentorship and support from YCombinator in its newest program.