Payments technology provider ConnexPay has teamed up with Payouts Network, to launch a new feature that will allow businesses to pay gig-economy delivery drivers in real time directly to their eligible card account.
Unlike in-person transactions that can be settled using cash or scanning a QR code, cross-border gig economy transactions are complex, often settled through bank transfers, fintechs, international payment processors, and remittance companies. All of which takes time.
In recent years, as the gig economy has grown, it has become increasingly evident that gig workers want to be paid as quickly as possible so they can effectively and properly plan their finances which is even more difficult when payments are delayed or irregular. On the back of a surge in the freelance market and short-term work during the Covid pandemic many businesses came to the realisation that a failure to adapt to real-time payments could force them to miss out on the best freelancers. In a competitive market, having the right payment solution not only attracts the right quality but it can increase worker loyalty, a prime component to consider for businesses who may be looking to take on the same workers time and time again.
ConnexPay and Payouts Network are the latest who are seeking to tap into this mindset with their Push-to-Card Payouts feature. Push-to-Card Payouts are initiated by the payer, who “pushes” funds in real time to a payee’s account through their eligible Visa or Mastercard debit or reloadable prepaid card. Payments are settled in real time and need only the payee’s name and email. Once the payee’s card information is captured on the initial payment it is stored for future payments.
A key benefit of the feature to businesses is that it eliminates the need for payment methods that are quite traditional to the gig economy like checks and ACH, which can take days to clear and have limited settlement visibility. While ConnexPay’s primary payment modality is virtual cards, which provides an alternative to each of these methods, Push to Card technology really comes into its own when virtual card acceptance is unavailable. Significantly, Push-to-Card Payouts is 24/7, without restrictions on weekends.
A 2022 report on payments in the gig economy revealed that ninety percent of workers associated faster pay with greater financial peace of mind. About eighty percent said they were likely to choose one gig platform over another if it could pay instantly without fees. Further data showed that nearly seventy percent of gig workers prefer to receive their pay within the same day they work, with the majority of those preferring payment right after each job.
Recognising the demand for instant payment solutions ConnexPay said it expects the new feature to help accelerate the company’s own expansion across the gig economy, insurance industry and other parts of the travel industry.
“Our customers are already using technology that is at the forefront of PayTech, and this new addition will make their payments much faster, while helping us serve more companies,” said Founder & CEO of ConnexPay, Bob Kaufman on the deal.
