Grade

What Grade does

Grade is a cloud-based Merchant of Record (MoR) platform that operates the legal and compliance layer between companies and the freelance creators/contractors they pay. By inserting itself as the contractual reseller of creator services, Grade absorbs the employment relationship and, with it, regulatory obligations — including DAC7 EU reporting from the first euro, employment classification under the EU Platform Workers Directive (effective December 2026), KYC/AML identity verification, sanctions screening, tax form collection (W-9, W-8BEN), 1099 filing, and cross-border withholding. The platform supports payouts in 190+ countries across local bank transfers, Wise, PayPal, Payoneer, Revolut, Venmo, Airtm, and USDT, consolidating what would be hundreds of individual creator invoices into a single invoice per payout cycle for the client's finance team.

The product is delivered through two complementary motions: a direct enterprise sales motion with a 'Book a Demo' CTA targeting brands and agencies (with dedicated solution pages for each), and an API-first integration for marketplace platforms via REST API, sandbox environment, and webhooks for real-time payout status. The technology stack is cloud-based with API and webhook infrastructure, role-based access controls, multi-factor authentication, encryption (TLS 1.2+ in transit, AES-256 at rest), and anomaly detection plus velocity checks for fraud and compliance screening. Certifications include GDPR, DAC7, CCPA, and ISO 27001-aligned controls.

Grade's business model is purely transactional — clients pay per payout with no monthly fees, setup costs, or subscriptions. The company is privately held, backed by Y Combinator (with Pioneer Fund as a co-investor in the $500K seed round closed March 2026), and operates with 1-10 employees from San Francisco. The customer base is diversified across at least eight named logos spanning travel (Triips, Vola.ro), AI (Astra AI, Parakeet AI), religious tech (Bible Chat), marketing (Valid, Growth Gorilla), and education (Hayai Learn), with case studies highlighting Valid ($30M+ ad spend), Astra AI (5.7M+ users), and Bible Chat (25M+ users).

Name

Grade

Legal name

Grade

Website

https://usegrade.com

Company type

Private

Founded year

2025

Operating status

Operating

Headcount range

1–10 employees

Short description

Grade is a cloud-based Merchant of Record platform that handles global creator payouts, compliance (DAC7, KYC, employment classification), and consolidated invoicing for brands, agencies, and marketplaces operating across 190+ countries.

Ownership category

akta.pro rank

Product category

Creator Payout and Compliance Software

akta.pro primary industry

Creator / Affiliate / Ad Revenue Payouts (FSAMAKAF)

akta.pro secondary industry

Awarding Organizations & Credentialing Bodies (Certificates/Diplomas) (EDADAFAC)

Keywords

• Creator payout platform
• Merchant of record
• Global freelancer payments
• Cross-border compliance
• Creator economy payouts

Headquarters

HQ city

San Francisco

HQ country

United States

HQ region

North America

Markets served

GTM type

B2B

Offering type

Software

Cost components

Technology or R&D, Personnel, Operations, Marketing or Sales, Infrastructure

Revenue model

1. Per-Payout Transaction Fees: Grade charges per payout transaction rather than monthly fees. Clients pay only when they pay creators, with no setup or monthly subscription costs. This transaction-based model aligns costs with usage.

Pricing tiers

Go-to-market motion2 records

Distribution channels2 records

Marketing channels3 records

Core offering

Grade is a cloud-based Merchant of Record platform that pays global creators on behalf of brands, agencies, and marketplaces while handling cross-border compliance. It collects creator tax forms, runs KYC/AML checks, files DAC7 and 1099 reports, protects clients from employment misclassification liability, and delivers a single consolidated invoice per payout cycle. Creators are paid in 190+ countries via local bank transfer, Wise, PayPal, Payoneer, Revolut, Venmo, Airtm, or USDT, with bulk payouts executed in minutes through a web dashboard or REST API.

Product overview

Grade is a unified cloud-based creator payout platform that operates as a merchant of record. The core Grade Platform serves as the central offering, with three specialized solution modules: For Brands (for brands managing their own creator programs), For Agencies (multi-client management), and For Marketplaces (API-first integration for platforms). The platform integrates compliance features including DAC7 Reporting, Employment Classification Protection, KYC & Tax Compliance, and Merchant of Record Services. Key capabilities include the Creator Wallet for real-time earnings tracking, Performance Tracking Dashboard, and multi-currency global payout support across 190+ countries.

Differentiator

Problem solved

Functional benefit

Products and services

• Grade Platform Cloud-based creator payout platform operating as Merchant of Record. Lets brands, agencies, and marketplaces pay creators globally across 190+ countries while handling DAC7 reporting, KYC/AML, tax withholding, employment classification protection, and consolidated invoicing. Supports local bank transfers, Wise, PayPal, Payoneer, Revolut, Venmo, Airtm, and USDT, with bulk payout approvals and real-time performance tracking.
• For Brands Solution module tailored for brands managing their own creator programs. Finance teams receive a single consolidated invoice instead of hundreds of individual creator invoices; DAC7 reporting and employment classification risk are handled on the brand's behalf.
• For Agencies Multi-client solution module for marketing and creative agencies. Supports different payment rules per client, per creator, and per campaign, and issues one invoice per client rather than per creator to keep admin and compliance scalable.
• For Marketplaces API-first solution module for marketplace platforms to embed Grade's payout infrastructure. Includes a REST API, sandbox environment, and webhooks for real-time payout status; enables marketplace customers to go live in days rather than months and handles KYC, tax withholding, and DAC7 reporting at scale.
• DAC7 Reporting Automated DAC7 EU reporting service for every creator payout with no minimum threshold. Collects and verifies creator tax IDs, bank details, and addresses, and files DAC7 reports on the client's behalf.
• Employment Classification Protection Compliance service that uses Grade's Merchant of Record structure to shield clients from employment misclassification risk under the EU Platform Workers Directive (December 2026) and equivalent regimes. Grade becomes the legal counterparty to every creator, so the employment relationship is between Grade and the creator.
• KYC & Tax Compliance Compliance service covering automated identity verification, sanctions screening, ongoing transaction monitoring, W-9 and W-8BEN tax form collection, withholding where required, and 1099 submission on the client's behalf.
• Merchant of Record Services Merchant of Record service in which Grade acts as contractual reseller, purchasing creator services on behalf of clients and reselling them. Handles all formal transaction aspects, including invoicing, tax withholding, and regulatory compliance.

Quantifiable outcome

• 3,200+ creators paid through the platform
• +3 more outcomes

Named customers8 records

Segments3 records

Ideal customer profiles3 records

Technology focussed Yes

API detail

Has API

Yes

API docs

API detail

Core technology

AI maturity

App detail

Integration9 records

AI capability2 records

Feature7 records

Scale indicators3 records

Recent moves6 records

Expansion highlights6 records

Direct peers

• Airwallex: Airwallex provides global business accounts, multi-currency wallets, and cross-border payouts to suppliers, contractors, and creators via API. Its embedded finance approach for platforms makes it comparable to Grade's marketplace offering.
• Remote: Remote is a global HR and payroll platform that hires and pays contractors and employees in 80+ countries with built-in compliance. Its international contractor management and payment capabilities directly overlap with Grade's value proposition for global creator/contractor payouts.
• Mangopay: Mangopay is a payment infrastructure provider purpose-built for marketplaces and platforms, offering multi-currency wallets, KYC, and pay-outs to sellers/creators. Its API-first model for marketplace payouts makes it one of the closest direct peers to Grade's For Marketplaces solution.
• Deel: Deel is a global payroll and contractor management platform serving 150+ countries, with strong compliance positioning (EOR, contractor of record, multi-country tax). It overlaps directly with Grade on global contractor/creator payouts and compliance-driven value propositions.
• Tremendous: Tremendous operates a global payout platform that lets companies send payments to recipients in 200+ countries via bank transfer, gift cards, and digital wallets. It targets market research, affiliate marketing, and creator programs—an overlapping use case with Grade.
• Tipalti: Tipalti is a global payables automation platform that handles mass payouts to suppliers, freelancers, and creators across 200+ countries with built-in tax form collection, KYC, and compliance. It directly competes with Grade in the cross-border creator/freelancer payout segment.

Broad incumbents

• Payoneer: Payoneer is an established global payments platform serving freelancers, marketplaces, and SMBs with multi-currency receiving accounts and payouts. Grade actually integrates with Payoneer as a payout rail, while also competing for the same creator/freelancer payments use cases.
• Wise: Wise (formerly TransferWise) is a large, established cross-border payments platform offering business payouts to 160+ countries. Like Payoneer, Wise is both a Grade integration partner and a broader incumbent serving the same cross-border contractor/creator payment demand.
• Hyperwallet: Hyperwallet (now part of Visa) is a mass-payout platform serving marketplaces, sharing economy, and creator economy companies with global disbursement and compliance. It is an incumbent in the same enterprise-grade payout infrastructure category that Grade targets.

Emerging players

• Bitwage: Bitwage is a payroll and invoicing platform focused on bitcoin and stablecoin-denominated wages and contractor payments. Its USDT/stablecoin payout option for international contractors overlaps with Grade's crypto rail and its freelancer/contractor positioning.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks7 records

Key highlights7 records

Customer concentration

• Xx.com/usegrade
• LinkedInlinkedin.com/company/usegrade

Compliance5 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles2 records

Funding overview

Funding rounds1 record

Investors2 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Grade