Driven by smartphone technology that enables a level of “hyper-connectivity” through social networks, making and spending money online through temporary work, or “gig work” is more prevalent than ever. Known as the “gig economy,” this industry, while not new, is growing rapidly and drastically changing the way that people find work, and more importantly, changing the way those workers expect to be paid.
The NACo report – The Future of Work: The Rise of Gig Economy – classifies gig workers into two broad categories:
The one thing these two groups have in common is a desire to get paid in real time and to get faster access to cash to make purchases and pay bills. As it stands, gig economy companies have many ways to pay gig workers – cash, checks, direct deposit or payroll cards. While direct debit reigns supreme right now, payroll cards are increasing in popularity in this industry. However, payroll cards can be associated with high costs and fees to employers which is why companies are looking for alternative options.
That’s where a mobile wallet with associated debit card becomes an attractive option. A white label mobile wallet and debit card solution, like the one offered by Valorus, offers companies the ability to pay gig workers without the usual friction and costs associated with traditional paper and electronic payroll processing methods. Companies can issue gig workers with a branded mobile wallet account and debit card so that they can issue payments and loans, large or small, direct to those accounts in real time. With the Valorus solution there is even the option to add a tax feature that easily calculates federal, state and local tax withholdings. And gig workers have instant access to their money to pay bills, make purchases, get cash and transfer funds to family and friends worldwide.
As well as giving gig workers instant access to their money to pay bills, make purchases, get cash and transfer money to friends and family worldwide, companies in the gig economy that use the Valorus white label mobile wallet and debit card solution can:
To find out more about the Valorus solution and how our white-label mobile wallet and debit card solution can help support real time payments for gig workers, contact us to set up a demo.