market_report

6.1 Market

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Tempo
Market Opportunity
The blind spot, brought to light.
MK 01 / 10
A large market, underserved, and finally ready to move.
Pay still moves far slower than the work.
TAMSAMSOM
$12BThe monthly instant-pay fee pool across every hourly worker.
80M hourly workers x 12 months x $12.50/mo
Tempo market model, 2026
$3.5BWorkforce platforms that would embed and white-label instant pay.
$12B x 65% x 60% x 75%
Tempo market model, 2026
$64MTempo's Year-5 revenue, a fraction of the serviceable market.
762K workers x 12 months x $7/mo
Tempo financial model, 2026
MK 02 / 10
Why now
Three shifts are making instant pay table stakes.
01
Labour is scarce
Platforms compete on how fast workers get paid, and instant pay is fast becoming the deciding factor in who workers choose.
02
Regulation is turning favourable
States are formally separating earned-wage access from lending, which de-risks the category and clears the path for embedded pay.
03
Real-time rails matured
FedNow and RTP make instant settlement cheap and ubiquitous for the first time, so money can move the moment a shift ends.
MK 03 / 10
Business Model
Embedded pay infrastructure
Primary source of income
Instant-pay and interchange, a blended $4.50 per active worker per month from transaction fees and the Tempo Card.
Platform SaaS fee of $2.00 per active worker per month.
Unit economics
Unit Economics
Blended revenue climbs from about $5 to $7 per active worker each month, roughly $84 per worker a year at scale.
MK 04 / 10
Total Addressable Market
The fee pool sits on every hourly worker, every month. Total addressable market = Hourly workers x Billable months x Fee pool per worker per month Buyer-by-workforce-type: gig and marketplace workers, staffing and shift workers, and franchise and delivery workers. The three groups cover the US hourly workforce without overlap, each priced on the same monthly instant-pay and payroll fee pool. unit_a = number of US hourly and gig workers in the segment; unit_b = billable months per year; unit_c = instant-pay and embedded-payroll fee pool per worker per month, blended across products.
$12B
Gig and app-based marketplace workers Hourly workers 40M Billable months 12 Fee pool / worker / mo $12.50 $6B
Staffing, retail and hospitality shift workers Hourly workers 24M Billable months 12 Fee pool / worker / mo $12.50 $3.6B
Franchise and delivery hourly workers Hourly workers 16M Billable months 12 Fee pool / worker / mo $12.50 $2.4B
Assumes about 22% annual market growth through 2031. Bottom-up from workforce size and the monthly fee pool per worker.
MK 05 / 10
Serviceable Addressable Market $3.5B

Filters applied to TAM:

Platform reach: workers on digital workforce platforms, not manual payroll - 65% excludes paper and spreadsheet payrolls Tempo cannot integrate with
Buying intent: platforms that would embed pay rather than build or ignore it - 60% excludes platforms committed to in-house builds or no pay product
Integration fit: mid-market and enterprise platforms ready to connect an API - 75% excludes very small platforms without the engineering to integrate
sam filter 4 sam filter 4 detail
$12B x 65% x 60% x 75% = $3.5B
TAM
× 90%
× 89%
× 99%
× 99%
SAM
MK 06 / 10
Serviceable Obtainable Market How we reach $64M by Year 5 $64M
Year Active workers (avg) Paying months Blended ARPU / mo Total
Y1 20K 12 $5.00 $1.2M
Y2 82K 12 $5.50 $5.4M
Y3 208K 12 $6.00 $15M
Y4 440K 12 $6.50 $34.3M
Y5 762K 12 $7.00 $64M
Active users01M2M3M4M150K600K1.4M2.6M3.8MYear 1Year 2Year 3Year 4Year 5
MK 07 / 10
Industry Growth and CAGR22% annual growth through 2031
1×2×3×1.0×3.3×27% CAGR202520262027202820292030Tempo market model, 2026
US on-demand pay volume already tops $30B a year and climbing (PYMNTS, 2025).
The pay gap costs hourly workers over $100B a year in fees (Tempo model, 2026).
78M Americans are paid hourly, most living paycheck to paycheck (Bureau of Labor Statistics, 2025).
FedNow and RTP now reach thousands of banks, making instant settlement standard (Federal Reserve, 2025).
MK 08 / 10
Market Challenges Four barriers keep incumbents out, and each one is Tempo's advantage.
Fifty-state money-transmitter licensing Building the licences takes over two years and millions upfront. Tempo already holds the licences platforms would need to build.
Funding the float for advances Instant pay needs a funded balance sheet at all times. Tempo fronts the float and recovers advances at payday.
Real-time money movement and fraud Real-time settlement and fraud control are hard to build. Tempo's ledger and risk engine hold losses under half a percent.
Winning platform trust and adoption Platforms resist adding cost or handling regulated money. Tempo pays a revenue share and goes live in weeks.
MK 09 / 10
Key Takeaway Large, underserved, and finally ready to scale.
Total Addressable Market $12B
Serviceable Addressable Market $3.5B
Serviceable Obtainable Market $64M
Compound Annual Growth Rate 22%
MK 10 / 10