Payfare Withdraws Financial Guidance as DoorDash Partnership Winds Down
Earned wage access (EWA) company Payfare said Thursday (Sept. 26) that it is withdrawing its previously issued 2024 financial guidance for revenue and earnings after learning that its core services agreement with DoorDash will not be renewed.
The companies are establishing a transition plan to begin in the fourth quarter, and the core services agreement related to DoorDash’s DasherDirect card program will stop at the end of its current term in early 2025, Payfare said in a Thursday press release.
“DasherDirect is currently Payfare’s largest program, and the revenue derived from the program has been a substantial portion of Payfare’s total revenues,” Payfare said in the release.
Reached for comment by PYMNTS, a DoorDash spokesperson provided a statement saying the company is moving to a new vendor and will soon share news of other financial services solutions.
“As we transition out of our relationship with Payfare to a new vendor, Dashers will continue to have access to DasherDirect for the months to come,” the statement said. “Dashers who are enrolled will continue to enjoy cash back rewards and instant-no-fee direct deposit after every dash.”
“Our partnership with Payfare has helped empower millions of Dashers on their journey toward reaching their goals,” the statement added. “We’re excited to continue providing cutting-edge financial services solutions to Dashers, and look forward to sharing more soon.”
Payfare said in its press release that it is well capitalized to fund new strategic initiatives, and that it believes the aggregate gross dollar value from these opportunities could mitigate the impact of the non-renewal of the agreement with DoorDash.
The EWA company has over $100 million in cash, cash equivalents and guaranteed investment certificates, according to the release.
“Payfare continues to see high growth with its other client programs and is working on securing new, large-scale EWA programs in both the gig economy and employee verticals,” the release said.
The company also announced a board of directors update at Payfare, saying that Hugo Chan resigned as a director of the company for personal reasons after moving to Asia.
This news came about a month after Payfare and Lyft announced that Payfare is powering a new earned wage access that the rideshare company added to the Lyft Direct debit card and banking app designed for drivers.
In March, Uber said its Pro Card — which was developed in collaboration with Mastercard and Payfare — was being expanded to its Canadian drivers and delivery workers.
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