In today’s rapidly evolving digital landscape, the gig economy has emerged as a significant force, reshaping traditional employment paradigms. With an estimated 435 million gig workers globally, the demand for flexible, immediate compensation has never been more pronounced. The traditional payroll cycle is being challenged and 90% of employees are more likely to stay with employers offering earned wage access.
The Rising Demand for Real-Time Payments
Traditional payment cycles often fail to meet the needs of gig workers, who rely on prompt payments to manage daily expenses. The gig economy has experienced significant growth, with 23 million Americans earning income through digital platforms in the past year alone. This surge has led to an increased demand for real-time payments, as gig workers seek immediate access to their earnings to manage daily expenses and financial obligations . Recent studies highlight this shift:
- 77% of consumers receiving income and earnings payouts opt for instant transactions.
- 81% of freelance, contract, or consulting workers prefer instant payments.
- 83% of workers are willing to pay for real-time payouts in emergency situations, and 58% would do so after every shift.
These statistics underscore a clear preference for real-time payments across various worker categories.
Challenges in the Gig Economy
Despite the evident demand, many gig workers face hurdles in accessing timely payments:
- Delayed Payments: A significant number of freelance invoices are paid after their due dates, with some taking over a month.
- Fees for Faster Access: Some platforms charge workers fees to access their earnings sooner, leading to concerns about fairness and exploitation.
- Lack of Financial Inclusion: In emerging markets, limited access to traditional banking services hampers the ability of gig workers to receive payments efficiently.
borderless: Facilitating Instant Payments for a Dynamic Workforce
borderless offers a comprehensive solution to meet the growing demand for real-time payments. By integrating advanced payment technologies, borderless enables businesses to:
- Provide Instant Access to Earnings: Workers can receive payments immediately upon job completion, enhancing financial flexibility.
- Enhance Worker Satisfaction: Timely payments contribute to higher worker satisfaction and retention rates.
- Streamline Payroll Processes: Automated, real-time payment systems reduce administrative burdens and errors.
- Ensure Compliance and Security: borderless adheres to regional payment regulations and employs robust security measures to protect sensitive data.
The Broader Impact on Marketplaces and Fintech companies
For online marketplaces and fintech platforms, integrating real-time payment solutions like borderless offers multiple advantages:
- Competitive Edge: Offering instant payments can attract a larger pool of gig workers, giving platforms a competitive advantage. FedNow, RTP, Faster Payments, SEPA Instant, NPP, and more rails all under one platform.
- Operational Efficiency: Automated payment processes reduce manual interventions, leading to cost savings and improved accuracy. Batch payments are the way of the future.
- Global Reach: With support for multiple currencies and payment methods, borderless facilitates cross-border transactions, enabling platforms to tap into global talent pools. Pay to bank accounts, wallets, Push to Card with VISA Direct & MasterCard Send or third party wallets like PayPal, Venmo, Interact and more.
The Economic Impact of Real-Time Payments
The adoption of real-time payments is not just a convenience—it’s an economic catalyst. In 2023, real-time payments boosted the GDP across 40 countries by $164 billion, equivalent to the labor output of 12 million workers. Projections indicate this contribution will reach $285.8 billion by 2028.
Moreover, the global real-time payments market is experiencing rapid growth. Valued at $24.91 billion in 2024, it’s projected to soar to $284.49 billion by 2032, reflecting a compound annual growth rate (CAGR) of 35.4%. The global payouts market is expected to reach $920Bn by 2031.
Conclusion
As the gig economy continues to expand, the need for real-time, flexible payment solutions becomes increasingly critical. borderless stands at the forefront of this transformation, offering tools that not only meet the immediate needs of gig workers but also empower marketplaces and fintechs to operate more efficiently and inclusively.
Discover how borderless can transform your payment processes and empower your workforce today.
About Us
borderless, a global payments company that provides a payout software and API to companies to process payments to 150+ countries. borderless specializes in payouts utilizing local payment rails, Debit Cards, PayPal, Venmo, and SWIFT to facilitate faster and more efficient payments. We invite you to explore how borderless can assist your business or digital platform in navigating local and international payouts. To learn more, contact our team to schedule a demo today.
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