The payments imperative for gig workers

The gig economy has become a major force in the labour market, with 62% of US adults earning income from at least one gig platform in 2024. As platforms innovate and participation rises, gig workers are raising their expectations for how – and how quickly – they’re paid.

Holiday hustle

With the busiest season for gig workers upon us, Worldpay’s new research shows that three-quarters of respondents plan to increase their hours during the holiday season, primarily to cover extra holiday expenses.

A surge in activity is seen across generations, though Gen Z leads the way in increasing gig work (89%), compared to 72% of Gen X and 56% of baby boomers.

• 36% are planning to increase their work by 11-20 more hours per week.
• This is spread fairly evenly across transportation, freelancing, household services and marketplaces.

With appetite for seasonal gig work so high, getting paid fast is a core motivator, along with the ability to earn more and the flexibility that gig work brings.

In addition to seasonal needs, seven in 10 respondents have added work to strengthen financial security amid changing economic conditions. The economic lifeline gig work provides is inherently dependent on fast, reliable and convenient payouts.

“Americans across all generations are turning to gig work to cover their extra seasonal spending,” said Jason Pavona, Worldpay general manager, North America. “What stands out is the growing demand for fast payments. Gig workers justifiably want access to their earnings instantly. At Worldpay, we’re committed to supporting this shift by delivering payment solutions that empower gig workers with speed, flexibility and choice during the busiest time of year.”

Fast payouts matter

Flexibility may be the draw, but fast and predictable payments are gig works’ lifeblood. Over half report challenges with slow or delayed payments, particularly among Gen Z. Payment delays cause frustration and financial stress, limiting workers’ ability to cover daily essentials or plan outgoings.

Real-time payouts provide a welcome solution.

The data show that gig workers would prioritise platforms offering instant card payouts, and 67% are willing to pay a small fee for immediate access to their earnings. Even among those who haven’t used instant payouts before, the appeal is almost universal, with 94% say they find the feature attractive.

For gig platforms, offering faster payouts is a competitive advantage they can’t afford to lose.

• 41% cite getting paid quickly as a leading motivation for embarking on gig work, jumping to 47% of Gen X.
• Seven of 10 gig workers are active on multiple platforms, underlining the need for industry-leading payment solutions.
• 81% would prioritise a platform that offers instant payments over one that does not.

What businesses should do

The implications for businesses that rely on gig workers are significant. Offering instant, reliable payments is a key differentiator in the battle for gig worker loyalty. Immediacy and reliability are rated the top benefits of instant card payouts.

Here are five ways to help the gig economy thrive this festive season:

• Prioritise fast payouts: Make instant card payouts a core feature of your platform. It’s a leading factor for gig worker satisfaction and retention.
• Offer choice: Cater to diverse payment preferences to receive payment by supporting cards, A2A and even consider emerging options like stablecoins.
• Communicate the benefits: Highlight the security and dependability of your payout solutions.
• Keep fees reasonable: While workers are willing to pay for speed, keeping fees low can maximise adoption and goodwill.
• Stay agile: The gig economy is evolving rapidly. Understand evolving worker preferences and be ready to adapt your payment offerings as new technologies and expectations emerge.

“For the growing number of Americans turning to gig work, waiting days for a payout just doesn't work. That’s why our collaboration with Worldpay is so important,” said Yanilsa Gonzalez-Ore, Visa senior vice president of money movement for North America. “Through Visa Direct, we’re helping workers get their money in a minute or less, with the ability to reach nearly any Visa card in the U.S. With more than half of gig workers already preferring this method, it's clear we're providing a solution that offers the real-time financial control they need.”

Pavona added, “As consumers come to expect the near instant exchange of money when they’re shopping, workers are now having those same expectations for getting paid. Success in this growing gig economy will require providers to be equipped to meet these demands.”

To find out more about how Visa and Worldpay help gig workers get paid fast, visit our payouts page or get in touch. We love to hear from you.