According to a study carried out by Visa, 77% of the surveyed gig workers endure times where they need money and only 12% describe themselves as financially secure.

The challenge for gig companies today is to recruit and nourish their gig workforce as a long-term, dedicated pool of labor. As gig economy companies look to retain their workforce relationships, addressing payment needs to empower a financially healthy gig workforce will help them gain a competitive edge.

To secure the services and skills of the most sought-after gig economy workers, key payment facilitation issues need to be addressed.

Gig Payment Challenges and Inefficiencies

Gig workers experience unreliable demand fluctuations for their work, making income volatility a major challenge for this group of people.

For instance, during the Covid-19 lockdown, consumer demand for home delivery skyrocketed while their interest in ride-sharing dropped due to health concerns. These inconsistencies can lead to substantial swings in income from one month to the other.

Another key challenge with gig worker payments is the likelihood of receiving untimely and delayed payments. Traditional bank and wallet-based transfers that rely on batch processing and third parties increase the time between when a gig worker delivers work and when they receive payments. This makes it difficult for gig workers to access their earned wages instantaneously and fulfill their recurring financial obligations in a timely manner.

A Think Forward Initiative report shows that workers who experience such challenges encounter more financial stress, lower savings, and difficulty making ends meet.

Organizations and gig platforms need to replace their complex, slow, and costly payment processing methods with real-time payments to ensure immediate payment transfers and settlements.

Gig workers are increasingly craving efficient and flexible payment experiences. In fact, 85% of the gig workforce is willing to work more often if they could get paid faster.

Modern card issuance: Fostering Lasting Relationships with Gig Workers

By directly addressing long-standing gig payment inefficiencies, payment solutions capitalizing on real-time capabilities can help businesses a) elevate gig worker experience b) foster loyalty, and c) reduce costs of attracting and retaining gig talent.

So, how can your business reap these benefits? Through Modern card issuance.

Modern card issuance is a secure and flexible way of issuing cards by creating customizable, flexible card programs through open APIs. Your organization can issue and fund cards instantly to provide workers with immediate access to their earned wages.

Receiving payments quickly and seamlessly as soon as the job is completed is a great motivator for gig workers. Real-time, on-demand gig worker payouts can help build loyalty and engagement. According to a survey conducted by Visa and Directions Research, over half of the surveyed gig workers prefer real-time payouts.

What’s more, using modern card issuance solutions, organizations can issue their own branded cards, which can further deepen the relationship with gig workers on your team. In addition, through programmable features, companies can not only automate payouts but also customize them such as the timing of the payout and % of the amount paid by linking them to the rating of the gig worker or his tenure.

Embracing payment platforms that address gig workers’ pain points through real-time money movement and a range of flexible payment options allows your businesses to strengthen vital working relationships with gig workers and also attract top talent.

Give workers the financial peace of mind they want with the speed and flexibility of Modern Card Issuing Platforms. Explore SimpliFi’s corporate payout solutions to strengthen and streamline gig worker relationships.