How a mobile wallet can help support real time payments for gig workers

As the gig economy continues to grow, this blog post explores how a mobile wallet can help facilitate real-time payments and faster access to cash for gig workers.

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:

  1. Labor providers
    1. For example – drivers, handymen, delivery men
    2. Lower income and less educated workers who rely on gig work for their entire livelihood, often because they have trouble finding other job options
  2. Goods providers
    1. For example – artists, craftsmen, clothing retailers
    2. Higher income and more educated workers who do not depend on their gig work income, often because they have another full-time job; their gig work generally provides supplemental income

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:

  • Issue a branded mobile wallet (virtual bank account) with an optional, Visa-backed branded debit card to your employees that can be used to enable schedule payroll and payroll advances, daily payments and loans with scheduled payroll deductions.
  • Turn payroll into a profit center, saving as much as $233 per employee per year.
  • Reduce employee turnover by providing an enhanced employee experience including the ability to get faster access to cash to pay bills and make purchases.
  • Generate recurring revenues every time an employee uses your branded mobile wallet to transfer money or makes a transaction using the branded debit card.

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.