The gig economy is dynamic and constantly changing. Since the onset of the Coronavirus pandemic, the sector has expanded exponentially in response to society’s growing reliance on gig workers to deliver the bare necessities, straight to consumers’ doors.
Office workers, used to the 9-5 grind, suddenly found themselves furloughed or laid off entirely, resulting in increased dependence on gig work to make ends meet in an unprecedented time.
An estimated 5 million Britons work within the gig economy, meaning there are now more gig workers than ever. Yet the unpredictable nature of their income complicates their financial lives. Historically, high-street banks have avoided catering to gig workers, perceiving them as risky customers.
COVID-19 and its impact on the economy have thrust the disproportionate financial struggles faced by gig workers into the spotlight. There is increasing recognition of their unique financial needs and the failure of the current system to meet them.
While digital platforms continue to accelerate the popularity and profitability of the gig economy, huge rifts between the industry and the financial health of its workers remain.
This has led to ample opportunities for FinTechs to provide solutions for gig workers. The embedded payments model in particular accommodates gig economy workers with fluctuating incomes, offering an efficient alternative to traditional banking. Thus, gig workers are empowered to achieve financial independence, with personal eMoney accounts that afford a range of functionalities including instant access to wages, bill payment and money transfers, and more.
Embedded payments are defined as payments and account services that are directly integrated into a business's product ecosystem to create a more efficient and intuitive customer experience.
In our modern-day lives, embedded payments power some of our favourite offerings, from taxis to takeaways, and are creating exciting new opportunities in every industry for innovative companies, willing to go the extra mile.
💬 Good to know: While Modulr works with marketplaces that offer credit, those marketplaces do so under their own credit licence while Modulr only performs the operational payments side of the lending process including disbursements and collections. This is because we're an infrastructural payments platform and obtaining credit permissions, such as a banking licence, is not currently a part of our business model.
The Modulr platform is designed to achieve all this and more, with a simple embedded payments infrastructure that helps your business reduce costs, retain customers and help increase the financial health of your valuable gig economy workers.
As the gig economy continues to grow in both workforce size and demand, gig platforms will face increasing pressure to safeguard their employees’ financial health. With embedded payments, they can begin to meet some of the challenges their workers encounter, head-on.
Instant access to earnings can significantly improve the lives of gig workers and promote a healthier, more sustainable industry that continues to flourish in the face of adversity.
Meet the needs of your gig economy workers and create a happier, healthier workforce with efficient embedded payments from Modulr.