Food delivery platform Grubhub is giving drivers instant access to their wages following a partnership with PayPal and Visa, according to a press release emailed to PYMNTS on Tuesday (June 14).
Instant Cashout via Direct to Debit is enabled by Hyperwallet from Paypal and Visa Direct, Visa’s real-time money movement network. Direct to Debit, powered by Hyperwallet, is a payout management platform managed by PayPal, which uses Visa Direct to deposit those payments to bank debit cards.
The partnerships enable Grubhub to give its workers flexible access to earnings by allowing any driver to deposit earnings to an eligible bank debit card or prepaid card.
See also: Grubhub Says Instant Payments Give Gig Workers Much-Needed Financial Flexibility
“Cashing out is one of the most important features to Grubhub’s drivers, and we are constantly innovating to deliver the best possible experience,” said Mrugesh Bavda, product manager for Grubhub.
“Direct to Debit will expand the ways our drivers can immediately and reliably access the income they generate on our platform, while maintaining the flexibility and independence that they appreciate from Grubhub,” Bavda said.
Read more: Instant Payday Becoming Critical Tool in Battle to Recruit Freelance Talent
Instant Cashout via Direct to Debit is Grubhub’s latest move to help drivers and will launch throughout the month of June. Instant Cashout. in partnership with Chase, was launched in 2019 giving drivers instant cash to their bank accounts.
Over 60% of drivers use Instant Cashout as their primary or partial way to get paid an average of three times a week, per the press release.
“PayPal and Grubhub have nurtured a very strong relationship over the last 10 years that has resulted in millions of customers opting to use PayPal or Venmo at checkout,” Cindy Turner, vice president of large enterprise product and growth at PayPal, said in the release.
“Currently more than 95 percent of Grubhub transactions are processed by our enterprise offering Braintree, which includes added benefits such as high authorization rates and low-risk losses. The addition of payouts through Hyperwallet is a natural extension of our work together, and we are excited to help drivers access their funds more quickly and efficiently,” Turner said.
Related: US Treasury Rule Could Pave Way for On-Demand Wage Payments
“Today’s consumers are accustomed to ‘real-time everything’ and worker expectations are no different when it comes to receiving tips and earnings,” said Yanilsa Gonzalez-Ore, SVP, North America Head of Visa Direct. “Through collaborations with companies like Grubhub, Visa Direct is helping reshape money movement to provide workers with faster, digital access to the money they’ve earned.”
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