Gig Worker Pay Suffers When Platforms Don’t Prioritize AP Automation

When it comes to gig economy companies, a little accounts payable (AP) automation can go a long way.

For PYMNTS’ study “Accounts Payable Automation: Why Gig Economy Companies See Payables Innovation as Key to Success,” created in collaboration with Routable, we surveyed more than 200 executives from small, mid-sized and large firms across four industries — the gig economy, virtual events management, online marketplaces and transportation. The study revealed that, among companies in the former category, those that do not prioritize AP automation deal with slow payments and inefficient onboarding processes.

Two-thirds of gig economy companies that see AP automation as only slightly or somewhat important ranked slow payment options as a top five AP challenge they face. Half that share said the same among those that see it as very or extremely important.

Similarly, 60% of those that only view AP automation as moderately important ranked inefficient vendor onboarding processes as one of their key challenges, while only 40% of those that see it as highly important said the same.

In contrast, firms that are prioritizing the automation of their AP systems are dealing with other challenges. Seventy-eight percent of gig economy companies that perceive AP automation as very or extremely important reported that insufficient or inefficient communication with vendors or service providers was a top challenge for them. Conversely, 22% of those that see it as only slightly or somewhat important listed this as a top concern.

Moreover, 71% of those gig economy companies that see it as very or extremely important cited insufficient payment options as a top-of-mind concern, while this issue made the list for only 29% of the gig economy companies that see AP automation as only moderately important. As such, it seems that automating AP may free gig economy companies up to focus on more challenging issues, rather than getting tied up with solvable problems.