Paterson launches guaranteed income pilot with Newark fintech MoCaFi

Newark fintech start-up MoCaFi is partnering with the city of Paterson on a guaranteed income pilot program for the next 12 months.

MoCaFi CEO and former J.P. Morgan executive Wole Coaxum and Mayor Andre Sayegh announced in a conference July 29 that from July 12 to 16, 110 Patersonians were given debit cards that will receive a wire of $400 monthly over the next year.

The first monthly payment of the Paterson Guaranteed Income Pilot was wired July 15 and will be wired on the 15th of each month thereafter.

Coaxum started MoCaFi as a way to bring banking privileges to the unbanked and underbanked, a population largely made up of people of color. The debit cards MoCaFi is providing carry no fees.

“MoCaFi is proud to partner with the City of Paterson, and we commend Mayor Sayegh for being at the vanguard of a vital movement to address the wealth gap in this nation,” Coaxum said ahead of the event. “The American dream begins with financial stability, and the Universal Basic Income model will go far in assisting marginalized residents and families in moving closer to economic viability.”

MoCaFi was named to the Forbes Fintech 50: Most Innovative Fintechs of 2021 and in February received an investment from Mastercard to expand its card programs and solutions to help address the inequities in the financial system.

While most individuals selected for the guaranteed income pilot program are expected to spend the money on food, if they choose to pay rent with it, MoCaFi will report that payment to the credit bureau to help the individual build credit.