Top Trends Shaping the Future of Gig Economy Payouts

The global gig economy has exploded in growth over the last few years. The shift has been driven by workers moving away from traditional employment in search of better work-life balance and flexible work arrangements.

With so many people earning income through gig work through creator platforms and services like Uber, Upwork, or Airbnb, payment technologies have had to advance to keep up.

Let’s explore why payouts are the key to growth in the gig economy and future payout trends. We’ll also discuss how Thunes is helping businesses adapt to the future of work. 

Table of contents 

What is the gig economy?

The gig economy refers to a job market in which workers use digital platforms to find temporary or part-time work (gigs). Fuelled by a shift to remote work and a change in work preferences in younger generations, the gig economy market is predicted to reach over $2 trillion by 2033.

The gig economy offers benefits for both employers and workers:

• Employers can tap into a network of talented, independent contractors and service providers without the commitment of bringing them on as full-time employees.
• Workers get flexibility over their work hours, the option of remote work, what work they perform, and even the clients they work with.

Some popular examples of gig work are driving for Uber or Lyft, providing property rentals through Airbnb and working on freelance projects on platforms like Upwork and Fiverr. 

Why payout technologies are key to gig economy growth

Businesses rely on freelancers and gig workers for a variety of tasks, from ridesharing and food delivery to marketing and graphic design. The success of these gig economy platforms depends on whether they can make quick and secure payments.

At the foundation of this relationship is the ability to pay workers using their preferred payment method and in the local currency. For gig workers, getting paid on time is one of the key factors in their decision to continue working with a particular company or platform. Over 70% of independent workers said they would leave their current freelancer marketplaces for better payment experiences.

It’s estimated that over 1.57 billion people earn income from freelance work (half the global workforce). As the gig economy continues to expand, the pressure to innovate and adapt payout systems has never been greater. 

One solution is to integrate with a global payments network like Thunes’ Direct Global Network which enables a business to reach almost every country and offer the most convenient local payment methods and currencies. This leads to better retention rates, increased worker satisfaction, and enhanced brand reputation. 

The key drivers of change in gig economy payouts

Payout technologies have transformed over the past decade to meet the growing gig economy market. 

Several factors are driving this change, including: 

Globalisation of the gig economy

The gig economy is a global labour market, and this has intensified the need for cross-border payment solutions. Workers want payouts in their preferred local currency no matter where they are, and gig economy businesses must adapt to meet these expectations.

Technological advancements

Payout capabilities are expanding at breakneck speed. Thanks to the rise of digital wallets, artificial intelligence, blockchain, and real-time payment systems, platforms can process gig economy payouts faster, more securely, and at a lower cost.

Regulatory changes

Governments worldwide are expanding regulations to protect gig workers, which means platforms need to navigate compliance with new laws on taxes, worker rights, and payment transparency that vary in complexity from country to country. 

Worker preferences

Freelancers are demanding more flexibility in how and when they receive their money. The traditional monthly or bi-weekly payout schedule is no longer sufficient for many gig workers. No matter the size or frequency of the work, gig workers want instant payment solutions.

Economic factors

Global events like pandemics and inflation have led to increased financial uncertainty. Workers demand quick access to their earnings—for many, immediate income is the difference between financial stability and crisis.

The trends shaping gig economy payments

Let’s look at the new technologies and trends transforming the gig economy and how payments are being made between employers and the workforce. 

1. Cross-border real-time payments

Gig economy payouts are estimated to hit $1 trillion by 2028. Much of this growth is due to advances in cross-border payment infrastructure.

Real-time payment (RTP) systems are now available in over 80 countries, most notably in emerging markets. India is leading the way in global transaction volumes, followed by Brazil, Thailand, China, and South Korea. With the continued push towards interoperable real-time payment systems across borders, instant, reliable, and transparent payouts are becoming more accessible and efficient for gig workers and businesses.

Payments networks like Thunes’ offer instant, secure, and transparent cross-border payments to serve gig workers worldwide. 

2. Adoption of digital and mobile wallets 

More than 5.2 billion people now use digital wallets, and they are becoming the preferred method of payment, especially for unbanked populations and emerging markets. 

Mobile wallets like GCash are dominating in Southeast Asia, with platforms like Grab leveraging them for instant payouts to gig workers, while M-PESA has revolutionized financial transactions in Kenya and other African countries, enabling gig workers to participate in the global digital economy.

This continued adoption of mobile wallets is widening access to the gig economy. Mobile wallets give workers instant access to their money and financial tools, enhance security and trust, and reduce fees compared to traditional banking systems.

Gig economy businesses are at a competitive disadvantage if they can’t make payouts to digital wallets. Yet, integrating with different providers for every wallet requires time and resources.

With a single API connection to the Thunes Direct Global Network, gig economy businesses can make instant payments to over 3 billion mobile wallets and 120 wallet brands.

3. Blockchain and cryptocurrency

As cryptocurrency and blockchain technology become more widely used, gig economy businesses will explore using these technologies as an alternative payment method.

• Cryptocurrency: Bitcoin, Ethereum, and stablecoins are expanding opportunities for cross-border payments. Gig workers are often located in countries where traditional payment systems are inefficient or inaccessible. With crypto payments, businesses can sidestep these barriers and send payouts directly to workers, reducing delays and fees associated with international payments.
• Blockchain technology: As blockchain transactions are decentralised, they are more resistant to fraud or tampering. This payment technology also offers lower transaction fees and greater transparency. 

4. Localisation in payment options

As the gig economy expands to more marketplaces, businesses must be able to offer local payment experiences. Whether it’s the local currency or the preferred payment method, workers gravitate toward companies and businesses that best serve their financial needs.

It’s important to note that localisation is more than the country where the payout is made. Gig economy businesses must consider their workers’ age, culture, and nationality. When workers can receive money through their preferred methods, it helps build trust and loyalty and drives financial inclusion.  

Integrating with a payment network like Thunes’ allows businesses to offer the most convenient localised payment methods, including mobile wallets, cards, and QR codes, improving the payment experience. 

5. Embedded finance solutions

Embedded finance, the integration of financial services into non-financial platforms, is becoming more common in gig economy platforms.

Workers are demanding seamless, frictionless payouts, and embedding payment solutions into gig platforms allows companies to offer greater flexibility, reduce the need for third-party payment processors, and lower transaction costs.

For example, freelance platforms like Upwork or Fiverr can allow workers to access their earnings and manage expenses directly through the platform immediately after completing a project. 

6. Expanded financial inclusion

More than 40% of gig workers are unbanked or underbanked. This means there’s an increasing need for more innovative payout solutions for workers in underserved regions.

Mobile money, digital wallets, and fintech platforms are helping to bridge the gap. These innovations allow workers to receive their pay in digital formats rather than a traditional bank account. Additionally, some fintech companies are now offering gig workers access to credit, savings accounts, and insurance products, helping them achieve greater financial security.

By expanding access to banking and financial services, businesses can help gig workers manage their earnings and improve their economic well-being.

How Thunes helps businesses grow with the gig economy

Paying workers across different countries, currencies, and payment methods is no straightforward task. 

Gig economy businesses have to deal with fragmented payment systems, intermediary third parties, banks and financial institutions, and FX fluctuations, which cause distrust, delays, and fees and worsen the worker’s payment experience. Supporting local payment preferences also requires businesses to build relationships with payment processors or costly, time-intensive integrations with multiple providers. 

Thunes empowers businesses to access markets and move money worldwide by facilitating mass payouts. Our Direct Global Network delivers many benefits for the gig economy, including; 

• Unparalleled reach: Make reliable payments to over 7 billion mobile wallets and bank accounts, as well as 15 billion cards.
• Instant payouts: Traceable transactions with real-time updates that settle instantly with 98% QoS. 
• Faster go-to-market: Integrate with our Network via a single API to launch without lengthy development cycles. 

Businesses are using Thunes for gig economy payouts because our Network offers instant, real-time payments worldwide through various payment methods and in compliance with local regulations.

Whether it’s innovations or new trends, Thunes will keep gig economy businesses and platforms at the forefront. Our Network ensures they can meet workers’ payment demands while continuing to expand their operations globally.

Ready to elevate your payment solutions? Connect to Thunes, the Smart Superhighway to move money around the world.