Four out of five gig workers want faster payments, and most have less than $500 in savings, according to a study by Branch and Marqeta.
The report examines how quickly gig workers want to get paid and the key drivers behind the demand. About 39% want to get paid at the end of a job or when a task is completed. An additional 10% want on-demand pay to get their money whenever they desire, and 33% want to get paid out at the end of each day worked. Only 18% preferred to be paid weekly.
“A lot of gig workers want to get paid at the end of the job, such as when a meal is delivered or rideshare is completed,” said Vidya Peters. “The big driver behind the demand is that about a third [31%] of gig workers have no savings. So for these people, it’s about getting the money quickly and getting it on a debit card so it can be spent immediately for items such as gas for the car or food for the family.”
About 85% of respondents had planned or already had picked up more gig work due to the pandemic. However, since the majority of gig workers regularly used only one or two platforms, such as Uber and DoorDash, the competition for gig workers has become fierce.
“Cash flow is a concern, which is why they are turning to gig work,” said Atif Siddiqi, founder and CEO of Branch. “Ultimately, the gig platforms are having to compete against each other to attract and retain their gig workforces. What they’re finding is that how they pay makes a difference and two things stand out — faster payments and ready access to funds through a debit card.”
The study also found 87% of gig workers were likely to choose one gig platform over another if it could pay them instantly without fees. Siddiqi noted that consumer expectation is a major force in workers wanting to get paid more quickly; it's part of their job to be quick and efficient, so they want the same when it comes to collecting their paychecks.
“It’s expected that just over half of U.S. workers will be part of the gig economy by 2023,” Siddiqi said. “Gig work provides the flexibility, cash flow and income security that many people want.”
The top three factors gig workers look for in a gig platform before deciding to join and accept work assignments are higher wages, payouts and tips (39%); faster payouts/access to earnings (26%); and scheduling flexibility or more control over when they work (19%).
“The most surprising thing to me in the study was this idea of how much faster pay resonated with these workers,” said Peters. “Faster pay was equated with greater peace of mind. Given that many of them have limited savings and are struggling to make ends meet, it makes sense that getting paid more quickly is putting them more at ease.”
