Traditional payment practices are rapidly being retired as faster disbursement solutions become available. From the gig economy to small businesses (SMBs) and the restaurant industry, workers and business owners alike have clearly gotten a taste for instant payments, and have little appetite for going back to old practices.
The latest Disbursements Tracker™ showcases the various players and new solutions launched in recent years that are helping workers and merchants to quickly connect to capital, even across borders.
Around The World of Disbursements
Disbursement solutions are not only working to reduce the time recipients must wait to see their payments, but the distance between parties separated by international borders as well.
Financial services giant Visa and global remittance firm Remitly recently partnered on a new solution to enable faster cross-border, person-to-person money transfers. Under the partnership, Remitly will enable users in the U.S. to have funds transferred to eligible Visa debit cardholders overseas using the Visa Direct service. The funds are sent in real time.
Another new solution is enabling business owners to get faster access to capital. Online lender OnDeck recently announced a new service for SMBs that allows business owners to get funds of up to $25,000 on the same day a loan is issued. Customers can also be debited in the same way.
A new service from grocery delivery platform Instacart is enabling shoppers to get paid faster. The service, known as Cashout, allows shoppers who buy groceries on behalf of customers to get paid immediately for their shifts, instead of waiting for a weekly direct deposit payout to roll around. Funds are paid directly to workers’ debit cards.
Deep Dive: Lessons in Online International Education
Educators are finding opportunities to tap into the gig economy to earn a side hustle. Thanks to digital technology and a global online market, educators in one corner of the world can provide lessons to pupils located in other parts of the world.
Waitstaff Want Digital Tips on the Menu
According to the Bureau of Labor Statistics, there are approximately 2.6 million individuals employed as waitstaff in the restaurant industry. For these workers, one of the perks of the job is to receive their tips instantly at the end of a shift, and often in cash.
However, as customers’ payment preferences shift to paying with credit or debit cards, cash falls in short supply, and creates a headache for restaurant workers and managers alike. Cash management solutions could alleviate these payout problems by batching cash transactions and instantly disbursing employee tips to their bank accounts or prepaid cards.
In the May feature story, Kickfin Co-founders Brian Hassan and Justin Roberts explained how faster disbursements are making tips safer and more secure for waitstaff.
About the Disbursements Tracker™