Instant Payout Solutions for Marketplaces and the Gig Economy
In a business climate where workers, sellers and contracts aren’t always local, getting to grips with the best way to make payouts isn’t easy. For businesses working in the gig economy and marketplaces, understanding and offering instant payouts is critical for success if you’re looking to build loyalty with contractors and gig workers. That’s especially true for those located in another country, or competing for talent in new and existing markets. The ability to offer instant payouts can be the make-or-break factor in your success.
What are Instant Payouts?
Instant payouts are a way to pay an employee, contractor or gig worker as soon as the job is completed. Instead of having to go through the often laborious and time-consuming accounts payable process (and make the payee wait for their payment), you can make immediate, hassle-free disbursements using recipients preferred payment methods, including bank transfers, push-to-card and ewallets.
The Benefits of Instant Payouts
- Increased loyalty –whether it’s a 1099 contractor, gig worker, or marketplace seller, the fact they know they’ll get instant payments will boost loyalty and adoption of your platform. Ride share company Lyft started offering instant payouts in 2015, and by 2018, 58% of its drivers had opted to receive their payouts that way.
- Increased productivity –the thought of receiving payment as soon as the job is completed is definitely a great motivator!
- Instant funds from sales -As well as being advantageous for workers or sellers, Merchants can benefit from instant payouts. When you make a sale, the money can be sent immediately to a connected account’s debit card, bank account or digital wallet, simplifying accounts payable.
- On-demand access to money for recipients –earnings can be sent to an eligible card within minutes.
- 24/7 availability–and this includes weekends and holidays.
Instant Payouts and Card Issuing
Another powerful benefit for instant payouts is the ability to combine it with card issuing. Businesses can issue their own cards to workers and use instant payouts to push funds to the virtual or physical cards. It’s a powerful tool, particularly in markets like Mexico and Brazil where there are large groups of workers who simply don’t have a bank account. As well as being a way for those people to receive their money, the cards also make a convenient way to use those funds to make purchases.
Use Real-Time Payouts to Capture Market Share
Using instant, real-time payouts can give you a strong competitive advantage, as Joel Yarbrough, Rapyd VP of Asia Pacific explains in the Rapyd report ‘Make Mass Payouts Payoff’, “In Singapore, Grab was able to dominate the ride sharing market partly by paying drivers in real-time, while competitors paid every few days.”
How to Use the Rapyd Platform to Make Instant Payouts
Let’s consider a case where a Home Services company connects customers with professionals such as plumbers, electricians, and locksmiths.
You collect from the customers using Rapyd Collect to accept payment.
Once the service professional completes the job, you can use Rapyd Disburse to set up an automated disbursement to the service provider.
The disbursement can be made to his bank account via bank transfer, pushed to a debit card, or pushed to a card that you issued in Mexico, Brazil, Singapore or the UK.
No One Wants to Wait to Get Paid
For businesses looking to thrive in marketplaces or the gig economy, offering instant payouts will give you the competitive edge you need. Keep workers and sellers happy and loyal, and increase your visibility in a global market.