DoorDash to Meet the Payment Needs of Gig Workers

Disbursements January/February 2022 - Find out how FIs can communicate the benefits of instant payments to drive consumer and business adoption

As the demand for instant payments grows – encompassing everything from online purchases to paychecks and insurance payments – understanding of the mechanics underlying cash outs has not grown at the same pace. A significant portion of businesses and consumers have misunderstandings about the difference between relatively fast digital disbursements and truly instant payments, a situation that is further complicated by the temptation for businesses to market any digital payment platform as “instant”.Disbursements January/February 2022 - Find out how FIs can communicate the benefits of instant payments to drive consumer and business adoption

The month of January/February Disbursement follow-up® examines some of the misconceptions consumers and businesses have about instant payments and what they entail. It also explores how offering truly instant payments and adequately explaining their benefits to both parties can help financial institutions (FIs) and other organizations push the adoption of instant payments to new heights.

Around the space of disbursements

According to Ingo Money CEO Drew Edwards, money mobility will be the “big thing” in 2022 as providers find better ways to make transactions between disparate accounts smoother. Consumers and businesses are now faced with a variety of ways to hold and transfer money, including using peer-to-peer (P2P) payment providers, FinTechs, traditional FIs, and neobanks. Edwards likened the experience of transferring funds between such accounts to that of withdrawing money from an ATM and going to another bank to deposit the money there. On the digital side, these accounts may be stored in the same mobile phone, for example, but transferring funds between them can still be arduous. The future of instant payments depends on providers finding ways to deposit funds into the user’s chosen account without requiring intermediate steps, Edwards said.

Disbursements January/February 2022 - Find out how FIs can communicate the benefits of instant payments to drive consumer and business adoptionThe shift to cloud-based payroll solutions comes with its own set of potential issues and threats, and a recent ransomware attack on payroll and HR provider Kronos shows just how important it is for employers. exercise security due diligence and have backup plans in place. . The attack left several healthcare providers who use Kronos without an immediate payroll solution while the provider recovered its systems. It is believed that fixing issues such as missed paid vacations can take months, even after Kronos’ systems have been fully restored.

Read more about these stories and other disbursement developments in the News & Trends section of the Tracker.

DoorDash on delivering faster payments to Gig workers

As instant payments and digital payouts have become more common among consumers, consumers have started looking for payment options that also offer faster and more frequent paydays in their working lives. This is especially true for construction workers, who often have to pay for operational expenses, such as fuel and other daily necessities, to do their jobs.

In this month’s story, Emma Glazer, Dasher marketing manager at delivery aggregator DoorDash, talks about the Dasher Direct prepaid Visa card that allows the company to digitally pay unbanked employees while offering payments daily to site workers who deliver for DoorDash.

PYMNTS Intelligence: Differentiating instant payments from other digital payments

Instant payments grew to account for 17% of all digital disbursements in 2021, almost triple their share of 5.7% in 2018. Disbursements January/February 2022 - Find out how FIs can communicate the benefits of instant payments to drive consumer and business adoptionDespite the popularity of instant payouts, a relative scarcity of digital payout products has added to the confusion about what true instant payout entails. While consumers and businesses see the individual benefits of faster transactions, many may not understand the value or the underlying mechanisms that would differentiate digital disbursements – some of which can take minutes to days to clear – from real instant payments.

This month’s PYMNTS Intelligence examines the misconceptions consumers and businesses have about instant payments and other forms of digital disbursement, and examines the need for instant payment providers to educate users on the value of their products.

About Tracking

the Disbursement Tracking®a PYMNTS and Ingo Silver collaboration, examines the latest trends and developments shaping the disbursement space and how instant payments providers can differentiate their products from other digital disbursement products.

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