Consumer research shows they want flexibility in how and how fast they get paid
Consumer research shows they want flexibility in how and how fast they get paid Gig workers are used to autonomy and flexibility in when, how and where they work. It’s no surprise they crave that same leeway in how and how fast they get paid.
Expectations & Experiences: Channels and New Entrants, the most recent consumer trends survey from Fiserv, found 70 percent of all those with a gig job or side hustle prefer electronic payments for their work, including directly to a bank account, debit or credit cards, or through a mobile payment provider. Among millennials with a gig job, 80 percent prefer to be paid electronically.
Even so, 31 percent of gig workers have been paid with a paper check. Just 13 percent wanted it that way.
“As the gig economy grows, so will the importance of providing flexible payment solutions,” said Shirra Frost, director of product marketing for electronic payments, Fiserv. “Companies need to pay people the way they want to be paid.”
Growing Expectations of the Gig Economy
The gig economy is based on people working freelance, temporary or short-term positions outside traditional employment. And it’s booming. One in five adults with a banking account has a gig job or side hustle, according to the Fiserv survey.
Workers in this economy work differently, and when it comes to being paid, many have different expectations and needs. Traditional payment approaches and standard mechanisms – checks and direct deposits – won’t always work for those without a traditional banking relationship.
Fiserv found 72 percent of consumers who prefer digital payments said it’s because they want their money faster. Getting paid quickly is often the expectation and need for gig workers, who don’t enjoy the benefits of a consistent paycheck.
“The 9-to-5 payroll model doesn’t match gig workers’ expectations or reality,” said Shannon Myhre, product manager for digital disbursements, Fiserv. “People with flexibility in their schedules often want the same flexibility in how and when they access their funds.”
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