Giggers: Work Today? Get Paid Today or Just Need a Pay Advance? Whether you are a gigger or an hourly employee, you can have your dough in seconds via Mastercard’s new push payment solution. Mastercard Send avoids the “check is-in-the-mail” crap or the payday “loan sharks” who will soak you with an average interest rate of 400%.
While, there are several instant pay apps available in the market, the Mastercard Send can push funds in near real time to U.S. debit cards.
Mastercard is partnering with Evolve Bank & Trust to support companies such as Branch, which work with large organizations to provide interest-free, pay advances to their hourly workers and gig workers. Working with employers, Branch provides early wage access so that employees can manage any lag between when bills are due and when the paycheck is received.
A recent Mastercard and PYMNTS study estimated one-third of total U.S. gig workers received approximately $236 billion through pay advances last year.
Jess Turner EVP of Mastercard Product and Innovation says “gig workers provide just-in-time services that help both consumers and businesses fulfill real-time needs but, when it comes to getting paid, they are stuck in a traditional model of work now, get paid later.”
PayPal Instant Transfer
PayPal recently expanded its Instant Transfer payment feature for its merchant customers, enabling a business to use their morning credit and debit customer payments to buy inventory for the afternoon. The PayPal service also links to any bank debit card.
With Mastercard Send, senders can reach virtually all U.S. debit card accounts while receivers obtain funds typically within seconds. There are currently 801 million Visa and Mastercard-branded debit cards in U.S. including 585 million Visa debit cards and 216 million Mastercard debit cards, according to CardData.
Last year, Metal Pay enabled users to earn investment crypto rewards, up to 5%, just for sending money via a phone number to friends, family and businesses (P2P or Peer-to-Peer). The cryptocurrency earned is able to integrate with Crumbs, allowing users to turn their spare change into micro investments, like the popular app Acorns, but with cryptocurrency.
Metal Pay is like a next-generation Venmo or Paypal but with rewards. Called “Pop,” the rewards are delivered in Metal’s cryptocurrency MTL and can be immediately converted into dollars, sent to another Metal Pay user or held as an investment. Metal’s simplified payment system builds on the revolutionary ideas behind Bitcoin, but also rewards the people who use and grow the platform with monetary incentives.
In the age of instant gratification, instant payments make sense and will most likely attack the best giggers, making even more cents says Robert McKinley, Senior Analyst of CardTrak, CardData and CardFlash.