Phaedra Ellis-Lamkins, founder of the startup Promise, has created a company aimed at helping municipalities and utility providers in the U.S. manage overdue payments for services like water, gas, and electricity. With a current valuation of $520 million, Promise offers innovative solutions that ensure people can keep their lights on and water running without falling into deeper debt.
How Promise works
Promise partners with local governments and utility providers to create zero-interest payment plans. Its user-friendly platform allows individuals to pay overdue bills via credit cards, Venmo, or other digital methods. As a result, approximately 93% of users enrolled in Promise’s plans make timely payments. Unlike other fintech companies that charge high-interest loans, Promise focuses on government contracts, earning revenue directly from municipalities instead of burdening consumers.
A mission rooted in empathy
Ellis-Lamkins’ approach to business is shaped by her personal experiences growing up in a financially struggling household. She emphasizes treating people with dignity and addressing the root causes of unpaid bills, whether it’s financial hardship or lack of payment options. “We’re not here to punish people with interest rates; we’re here to provide real solutions,” she explains.
Remarkable growth
In 2022, Promise generated $20 million in revenue—a threefold increase from the previous year. By 2025, the company expects its revenue to reach $100 million. This growth is fueled by new contracts with municipalities and utility companies in states like Virginia, Mississippi, and Washington.
Benefits for municipalities
Promise’s solutions have significantly improved debt recovery rates for cities. By partnering with Promise, municipalities have seen overdue bill collections rise to 85% or more. This approach not only benefits local governments financially but also strengthens community trust by avoiding aggressive debt-collection practices.
A broader vision
Promise is expanding its services beyond utility bills. The company is exploring new areas like parking ticket fines and local tax payments, aiming to streamline outdated systems with modern, accessible technology. Ellis-Lamkins’ ultimate goal is to use technology to make government services more efficient and equitable.
With its innovative approach and strong social mission, Promise is not just a fintech startup but a transformative force in how public services are delivered and paid for, ensuring no one has to choose between basic necessities and financial stability.
