Slow Payments Are Killing The Gig Economy

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Slow Payments Are Killing The Gig Economy

After the Great Recession happened, regular jobs just weren’t available for people out there. They often would have to settle for “gigs,” which are basically semi-jobs that pay small fees in exchange for goods or services. Things like pizza delivery, driving people via Uber, and even graphic design jobs are all part of the gig economy.

Experts are suggesting that this mini-economy isn’t really that mini at all. In fact, it’s worth around $1 Trillion on a global level. In 2017 alone, the gig economy of people using smartphones to make money will bring in approximately $680 billion in income on a national level. When you add that to Amazon’s Mechanical Turk services, Fiverr, and other major gigging platforms, you’re looking at an economy within an economy.

This is all great, but experts are suggesting that there could be ways to further improve the current economy as-is. In a recent study, around 81% of gig-working respondents said that they wanted to have their money available to them faster, and more easily accessible.

The problem is that most financial technology groups only focus on small to medium sized business needs, rather than gig workers. This means that many of these people are struggling, when they really shouldn’t have to struggle. And, it’s seriously impacting them. In fact, around 50% of all gig workers get the at least 40% of all their money from gig working.

For businesses that rely on gigs, this is very bad news. While around 65% of people wouldn’t give up their gig for a fulltime job offer, the fact is that the other 40% might. With payments tech making it hard for them to make ends meet and enjoy a stable income, it’s easy to see why they may eventually end up eschewing the gig economy altogether in favor of a regular job.

If you’re a business owner or a gig worker, there are only so many options out there for you. The most common option out there is PayPal, which has a business card you can use to help access funding nearly instantly. Many gig workers are also beginning to look into accepting credit cards, which could potentially help them get money faster as well.

If you’re a solo gig worker or a person who wants to begin accepting better forms of payment for a small business, you need to have the right tools for the job. Give CPS a call, and let our consultants help you get the right payment tech for your company.

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