Even in the digital payments world (and as more people travel more often, sometimes working freelance gigs along their journeys), the concept of home remains strong. That is providing opportunity to firms that facilitate temporary work and its wages.
Peter Shore, general manager of payments services firm Transpay, and Guillermo Bracciaforte, co-founder of online freelance marketplace Workana, recently spoke with PYMNTS about the payment preferences of gig workers and making gig economy payments more efficient.
This month, Transpay announced that it has been hired by Workana for payments to those workers in the United States, Latin America and Spain. The deal comes as the freelance, or gig, economy becomes ever more significant, and in various regions of the world. A Workana survey, for instance, found that 23 percent of Latin American respondents plan to become full-time freelancers.
As competition increases among companies striving to provide payment services to those workers, companies such as Transpay can do tasks of value like keeping up with worker preferences, Shore said. That means offering multiple payment options to prevent what they call platform leakage — that is, users leaving a platform for richer pastures that have the desired payments. The acceptance side already has multiple options, Shore said. It makes sense that the payout side has them as well. That also means increasingly depositing pay directly into workers’ local bank accounts, even if those workers are holding jobs in their non-native countries.
“Traditionally, getting paid while working abroad has been difficult,” Bracciaforte said. However, he and Shore both said that workers are growing less patient with work, or payment processing servers, that do not meet the growing demand to be paid into local bank accounts.
“Nowadays, people are changing lifestyles more quickly than before,” Bracciaforte continued, especially as the web and affordable computers — to say nothing of mobile phones — encourage the adventurous to seek paychecks in foreign lands. Offering multiple payment option is key, of course — PayPal and Payoneer are popular methods. However, “most of the time,” gig and freelance workers want to be paid into their bank accounts back home.
Part of the reason for that is cost. That includes saving freelancers from having to pay excessive fees for ATM and other transactions, fees that are often rendered moot by deposits into the workers’ bank accounts.