E-Duction

Founded in 1997, E-Duction operated in the financial technology sector, providing employment-based financial and payroll deduction payment processing services. The company's core offering was a technology platform designed to automate the collection, aggregation, and remittance of variable payroll deduction amounts, primarily targeting small and medium-sized enterprises. E-Duction successfully raised a total of $20.5 million in funding over two rounds, with its Series B round in May 2007 securing $7.5 million from investors including RRE Ventures, Novitas Capital, TTV Capital, and Apex Venture Partners.

A notable product developed by the company was the CLEAR card, a payroll-deduction-linked credit card. This offering was structured as a voluntary employee benefit, providing workers, particularly those with lower incomes or credit challenges, with access to a credit card featuring tight credit limits, a zero APR, and an automatic repayment system linked directly to their payroll. The business model focused on gaining acceptance from employers to offer this benefit to their employees. Despite its efforts and securing significant funding, the company was reported as deadpooled in January 2016.

Keywords: payroll deduction, payment processing, financial services, employee benefits, payroll card, SMB financial solutions, fintech, automated payments, CLEAR card, credit card alternative, Series B, venture capital, RRE Ventures, Novitas Capital, TTV Capital, Apex Venture Partners, employee financial wellness, payroll technology, payment aggregation, remittance services