Instacart Enhances Shoppers Rewards Program

Instacart has launched a rewards debit card for its contract “shopper” employees.

The Instacart Shoppers Rewards Card, which debuted July 1 in partnership with workforce payments platform Branch, lets these workers get free, automatic payouts of their earnings.

“We’re doubling down on our dedication to shopping excellence by empowering and rewarding shoppers who consistently deliver exceptional service to customers,” Daniel Danker, chief product officer at Instacart, said in a news release.

“Instacart shoppers are shopping experts, and they balance efficiency, empathy and skill to serve their communities every day. Through the Cart Star refresh and the new Shopper Rewards Card, we’re recognizing and supporting their incredible work, while providing valuable resources to help shoppers thrive both on and off the platform.”

According to the release, the program lets shoppers have their earnings deposited directly in their Shopper Rewards bank account for free after every batch they complete. If these employees choose to use a different bank account, they’ll be charged $1.50 for the Instant Cashout service, the release said.

Instacart will roll out the card to its U.S. shoppers in two phases, first in October, and again in April of next year. The card is part of Instacart’s Cart Star program, which the company introduced in 2022.

This latest addition comes as Americans are seeking on-demand wages, with “the ability to break free from the two-week pay cycle allows workers to manage cash flow and their expenses in a more fluid manner,” as PYMNTS wrote earlier this year.

Research by PYMNTS Intelligence has found that 83% of individuals want to have more frequent pay schedules, with 75% of millennials saying earned wage access (EWA) availability would impact whether or not they would accept a job offer.

Faster access to funds matters as well at a time when two-thirds of Americans live paycheck to paycheck. Another PYMNTS Intelligence report, “Measuring Consumer Satisfaction With Instant Payouts” found that 77% of consumers chose to receive instant payments for income and earnings disbursements.

At the same time, there have been moves to regulate the EWA space on the state and federal level. For example, the New York State attorney general sued earned wage access providers DailyPay and MoneyLion earlier this year, alleging their products are payday loans fees that can add up to interest rates of as much as 750%.

DailyPay has filed its own suit looking for declaratory relief, and contends that its EWA offerings are not loans.

Another 16 states have proposed legislation governing EWA providers operating in those states, while places like Utah and Arkansas have passed laws regulating the industry.