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How Phaedra Ellis-Lamkins, CEO Of Promise, Has Leveraged Partnerships To Spare Millions Of Americans From Debt


Approximately 80% of Americans live in debt. While credit card debt, mortgages, and student loans account for a large portion of that debt, many Americans also owe the government for unpaid utilities, taxes, child support, and parking. These debts have only become worse since the COVID-19 pandemic caused unemployment rates to reach unprecedented levels. One tech company is on a mission to help struggling Americans manage their debt with dignity. 

Promise, a ‘modern government payment solution for everyone,’ provides payment processing and solutions for utilities and government agencies. Founded by Phaedra Ellis-Lamkins and Diana Frappier, Promise has helped clients to avoid utility shutoffs, license revocations, sky-high interest fees, and even incarceration with flexible, interest-free payment plan, a range of payment options, and 24/7 client support. 

“We believe that people want to pay their rent. They want to have water. They want to have power. They want to feed their families. The job is to create systems that work for them,” Ellis-Lamkins explained. 

Ellis-Lamkins and Frappier founded Promise in 2017. The company’s first mission was supporting bail reform with software that would allow people to work around bail fees they could not afford. Promise later pivoted into government debt, but the purpose at the heart of the company remains the same—to make sure that people in poverty got support instead of punishment. 

The stigma poor Americans experience is personal for Ellis-Lamkins. She did not have much growing up and remembers the judgment and shame she faced. These experiences have fueled Ellis-Lamkins’ dedication. “For me, it was taking shame out of poverty, giving people dignity, making sure people had grace. I didn’t want [that experience] for anyone else,” she said. 

Ellis-Lamkins started exploring technology as a solution to the problem while working in the labour movement. She realized that while technology was generating wealth for some, it was having a negative impact on working class people. Ellis-Lamkins was determined to make change. 

“I thought, ‘How could something that is so clearly taking over—something so forceful—have such a negative impact on so many people?’ I was struck that we didn’t understand it. So, I went to work at a company called Honor, as a student, really. I wanted to learn how [technology] worked and how to leverage it in a different way,” Ellis-Lamkins explained. 

Ellis Lamkins spent two years learning and serving the healthcare industry at Honor before partnering with Frappier to found Promise full time in November 2017. By spring of 2018, Ellis-Lamkins and Frappier launched with $3.9 million in funding after participating in the Y Combinator program. The company has seen massive growth since, including another $20 million in Series A funding in February 2021. Promise’s investors include Kapor Capital, XYZ, Bronze, First Round, Y Combinator, 8VC, Village, Backstage, Gaingels, Bumble, and more. 

Ellis-Lamkins notes that she and Frappier have been careful to choose investors who not only provide funding but help to push Promise’s mission forward. “I always want partners who are better than me because that means I can be more effective. So, what I look for in investors are people who have shared values, who have success building companies, and who create space,” she explained. 

For Ellis-Lamkins, partnerships have been key at every step of the way. She describes her co-founder, Frappier, as a genius at systems and ethics who complements her expertise in execution. “I always want to work with her. She’s not only a genius, but she’s an incredible balance for my skills. I feel really lucky,” she said. 

Promise’s partnering agencies are also essential. Promise works with companies who view their service users as clients and focus on providing positive experiences rather than just collecting a fee. One notable partnership is Promise’s work with the Louisville Water Company, which included payment plans for 5,000 past due accounts and over $4 million in COVID relief funding. 

Ellis-Lamkins credits that efficiency to the accessible model Promise uses. Their service is online and available 24 hours; clients don’t have to provide tax information if they are already payees of a partnering agency; and clients have access to broad range of payment options. 

“We think you should be able to pay weekly, or if you need an extension, you shouldn’t have to talk to someone or ask permission. And that’s what the private sector does for people who get products. Why wouldn’t we do that for people for basic services?” Ellis-Lamkins explained. 

Promise is breaking ground for debt management, but Ellis-Lamkins is also using the company to blaze a trail for Black women entrepreneurs and professionals and make tech a better resource for underserved communities. 

“My job is to create space for more people like me. So, that means I need to make sure our company is profitable. It means I need to show that I can hire people who look like me. It means I need to make sure that I create a space for other people to exist in this environment. So, I think everything I do is with the thought of ‘how can I make the case that technology can be created in a way that is not predatory and that creates opportunity for people,” Ellis-Lamkins said. 

For other women who hope to build innovative businesses, Ellis-Lamkins recommends that they focus on building products that cater to the people who need them most. She also advises that they push past their fear of failure. 

“We need to give ourselves permission to fail. I wish for women to believe so strongly in their ability to do things that we recognize that failure is just building towards a greater success.”



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