Seventy percent of gig economy workers are still living paycheck to paycheck, despite pulling in more money than ever. Instant payments and disbursements are therefore only growing more integral to every facet of the gig economy ecosystem.
Nearly 40 percent of U.S. workers are engaged at some level with the gig economy, and most of them are hoping that instant and faster payments continue to grow in scope. As workers themselves get more attached to receiving instant payments, card networks and institutions like The Clearing House (TCH) and the Federal Reserve are all searching for ways to further innovate payments and disbursements.
In the latest Disbursements Tracker, PYMNTS looks at the spread of instant payments and disbursements throughout the gig economy, as well as how this need for speed in changing the insurance industry.
Around the Disbursements World
To keep up with the changing needs of the gig economy, some companies are working to innovate their payment platforms.
Financial wellness service PayActiv is among them, as it looks to enhance its payment process for more convenient disbursements with a focus on gig worker wages. The company is partnering up to make sure that such workers have instant access to payments, allowing employers to send wages in real time using direct push payments.
Other companies are setting lofty goals when it comes to digital disbursements, such as Indian payment provider Paytm. The company has announced its intention to process $1 billion USD in disbursements during the 2019-2020 fiscal year, coming shortly after the launch of its Bulk Payment service for its merchant clients. The feature aims to help merchants digitize their payments for faster money movement, including salaries and vendor payments
Meanwhile, companies and other payment providers still need to remain vigilant when it comes to fraud. U.S. companies lost more than $18 billion to check fraud last year, suggesting that many fraudsters are still relying on this type of fraud scheme to target victims even in the digital world.
To read more about these and other news items, download the Tracker.
Speeding Gig Economy Insurance Disbursements
Bringing faster payments into the insurance world is no longer a luxury but a necessity, as the gig economy workforce continues to grow. These workers expect their insurance claim payouts to be as instant as their wages, but can often be disappointed by weeks-long processes. Bringing more automation and artificial intelligence (AI) into the experience could help alleviate that frustration, says Tim Attia, CEO and co-founder of gig economy insurance platform Slice Labs.
To learn more about how Slice Labs is using AI and automation in its claims process to speed disbursements, visit the Tracker’s feature story.
Deep Dive: How AI, ML Are Revitalizing The Insurance Claims Process
AI and machine learning (ML) are slowly filtering into the insurance world, which has traditionally relied on checks and other paperwork to meet customers’ needs. That traditional approach can no longer meet the needs of an increasingly digital customer base. Therefore, a rising number of insurance providers and accompanying payment providers are turning to AI and ML to help automate their processes for faster disbursements and improved customer satisfaction.
To learn more about how AI and ML are integrating into insurance claims and other disbursements, visit the Tracker’s Deep Dive.
About the Tracker
The PYMNTS Disbursements Tracker, powered by Ingo Money, is the go-to monthly resource for staying up to date on the trends and changes in the digital disbursements space.