For global marketplaces, their product – what they have to offer the individuals and companies that come to their platform – is supplied by their dynamic community of marketplace participants. These participants comprise the all-important “supply” side of a two-sided marketplace, making it vital to offer them an excellent experience. With cost-effective, transparent and timely payments being top-of-mind for most marketplace participants, offering more options for getting paid is a wise strategy. It can boost a marketplace’s chances of attracting and retaining high-quality participants, and as a result, growing and strengthening the “supply” side of its network.
Here are the top three reasons why marketplaces should offer their participants a wide array of payouts choices:
1. Payment preferences vary widely among participants, and Local Bank Transfers are at the top of the list – on par with e-wallet provider Paypal. A 2018 research report sponsored by Crowdsourcing Week, Shareable and Tipalti asked freelancers which payment methods they wished more marketplaces offered. Some 53.3 percent said, “Paypal,” and 52.5 percent said, “Local Bank Transfer/ACH.” In addition, the report showed that freelancer preferences regarding payment methods vary widely and as a result, they gravitate toward marketplaces that offer a choice of different payment methods.
2. Paying in local currency matters. In fact, if a marketplace only offers payment in U.S. dollars to its international participants, this could be viewed as culturally insensitive. According to the 2018 research report, some 67 percent of non-U.S. freelancers want to be paid in their local currency – something that Local Bank Transfers accomplish with ease.
3. The trend is for participants to operate on multiple marketplaces, making it more important than ever to offer a positive experience that cultivates a high level of retention. The research report showed that about 64 percent of freelancers are using at least two different marketplaces at once, and nearly 20 percent use four or more marketplaces. As the gig economy continues to grow, the report states that the trend toward freelancers operating on multiple platforms is here to stay.
In a world where high-quality marketplace participants have options, they’ll gravitate to a marketplace that offers them the best experience and treats them with consideration and respect. By adding Local Bank Transfers from Transpay, you’ll give your marketplace a competitive edge.
Interested in exploring how Local Bank Transfers can help your marketplace build a strong and growing base of participants? Get in touch with one of our Local Bank Transfer specialists today!