Payments

Mastercard powers pay advance for hourly and gig workers

  • Gig workers increasingly have to deal with erratic pay and fixed pay cycles.
  • Mastercard's Send is being used by employees to access their accrued earnings
close

Email a Friend

Mastercard powers pay advance for hourly and gig workers

Mastercard wants to provide the payment infrastructure for the growing trend of pay advance. Mastercard Send is designed to work with banks and businesses with near real time payments to almost all debit cards.

Different work requires different types of paydays: Gig workers typically piece together erratic sources of income to support themselves and their families.

  • 38.7 percent of US workers participate in the gig economy.
  • And because much of the population lives paycheck to paycheck, they’ve turned to pay advances.
  • More than one-third of US gig workers received approximately $236 billion in pay advances in 2018, according to research published by Mastercard.

Everyday is payday: With Evolve Bank and Trust, Mastercard is using Send to support companies which work with large organizations to provide interest-free, pay advances to their hourly workers and gig workers

  • One early client is Branch which provides financial wellness technology to hourly workers. Large employers use Branch Pay to provide their employees with early wage access.
  • Mastercard Send can push funds in near real time to nearly all U.S. debit cards.
  • Earlier in 2019, Mastercard partnered with Lyft to give drivers immediate access to their earnings. The co-branded debit card is powered by Payfare, which offers a full service mobile bank account with instant access to employee earnings.

“As hourly workers’ schedules tend to fluctuate, so do their earnings and their ability to meet day-to-day financial needs,” said Atif Siddiqi, Branch’s CEO. “Branch helps increase financial stability among hourly workers by providing them instant access to earned wages, budgeting tools, and the opportunity to pick up more shifts.”

Tapping wages as they’re earned: Fintech is addressing the challenges of being a gig worker with new types of payments.

  • Companies like Earnin, PayActiv, Payfare have various solutions to help employees tap their accrued earnings.
  • Some banking products and banking as a service providers have competitive offerings in this space. Companies like Green Dot and N26 offer pay advance functionality for their clients and customers.
  • Pay advance typically requires account holders to have direct deposit for their earnings.

0 comments on “Mastercard powers pay advance for hourly and gig workers”

Payments

With Direct Payouts, Visa can push payments to cards and accounts cross border

  • Visa Direct has built an ecosystem of senders and receivers powered by push payments.
  • Visa is now launching Visa Direct Payouts, extending push payments cross border and to more types of accounts.
Zachary Miller | March 30, 2021
Payments

‘Payment companies are taking a clear political stance’: Politics and payments in the wake of the Trump administration

  • Should payments be politicized? As more than 400 people face criminal charges for the Capitol riots, we explore the repercussions on the payments industry.
  • Experts weigh in on potential polarization and regulations in the long term.
Rimal Farrukh | March 24, 2021
Payments

‘2020 was the year of QR code adoption — 2021 will be the explosion’: QR codes continue to climb in popularity

  • Past the three-month mark of 2021, we’re still seeing QR codes grow in popularity.
  • But how this payment method will expand continues to leave the future of QR codes kind of blurry.
Rivka Abramson | March 18, 2021
Payments

Baseball fans will get a cashless payment experience when they re-enter Petco Park this season

  • Baseball fans will have a cashless experience when they re-enter San Diego Padres' Petco Park next season.
  • The team signed a partnership with Tappit to enable fans to make transactions through the MLB Ballpark app at the stadium.
Rimal Farrukh | March 18, 2021
Payments

Subway standardizes payments across its stores and geographic footprint

  • Subway now offers a standardized payment solution across its European franchisees.
  • Amadis and Worldline are part of nexo standards, a member association which aims to globally standardize payment processes.
Rivka Abramson | March 12, 2021
More Articles