Benefits of Using Thunes for Global Payouts for Gig Economy

The global gig economy is booming—it’s expected to grow at a compound annual growth rate of over 16% through 2032. 

As such, creator platforms, gig work platforms and freelance marketplaces are thriving. However, these businesses face many challenges in initiating cross-border payouts to pay gig economy workers. The platforms and the digital payment providers they use have to manage complex cross-border payment systems, fluctuating FX rates, high transaction volumes at low values, and delayed payouts.

Thunes offers instant, reliable, secure payouts to creator economy platforms. Our payment system simplifies global gig payouts and ensures every transaction immediately reaches the correct recipient with upfront visibility and transparency on FX rates and fees.

This guide explores the challenges of global gig economy payouts and how Thunes solves these pain points for quick, transparent transactions.

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The Gig Economy’s Payment Challenges

Initiating payouts in the gig economy is complex because workers are often dispersed worldwide. For example, a freelance marketplace like Fiverr hosts freelancers who work everywhere, from the US to Asia. Or a platform like Uber has to pay drivers who work across a multitude of countries. 

Paying these workers can be complicated, making it critical for platforms and marketplaces to keep up with regulations and processes in various countries. 

Here are the top challenges to consider for gig economy payouts. 

Ensuring Rapid Payouts

Like any other worker, gig workers expect quick and secure payments. While traditional employment has set payment periods, gig economy workers expect more flexibility. As their typical deliverable is a one-off or short-term project, they expect payment soon after the outcome is met. Waiting weeks to receive payment causes friction and financial strain. 

The demand for speed isn’t compatible with multi-day settlement times. When a platform has to send a gig worker payment, using traditional payment systems can cause delays. They involve multiple intermediaries and financial institutions, and clearing funds between banks is time-consuming. 

That’s the benefit of implementing a payment solution like Thunes that offers instant global payouts. It allows platforms and marketplaces to give workers immediate access to funds while keeping costs low and streamlining payment processes. 

Managing High Transaction Volumes with Low Value

A defining characteristic of the gig economy is a high volume of low-value transactions. Constantly processing these payments can exhaust legacy systems designed for less frequent, high-value transactions.

Regardless of the size of the transaction, each payment requires the same security measures, data storage, and processing capabilities to reach freelance workers.

When creator platforms deal with thousands of these payouts daily, operational costs and resources can spike. This challenge in global payouts for gig economy workers requires freelance marketplaces to transform their approach to cross-border payment systems and use payment platforms like Thunes.

Connecting to our payment network offers rates up to 10x lower than traditional bank transfers with easy-to-send payments from as little as $1.

Navigating Cross-Border Payment Systems

Gig economy workers expect swift, secure payouts using their preferred payment method. 

This global dimension severely complicates gig economy payouts. Creator platforms must navigate various currencies, banking systems, and regulatory standards.

Countries have unique regulations governing global payouts, know-your-customer (KYC) policies, and anti-money laundering (AML) standards. Platforms also have to consider varying tax laws, which adds another layer of complexity to global payouts. 

Platforms can use innovative approaches to cross-border payments like Thunes and stay ahead of country regulations.

High Currency Exchange Rates and Transaction Fees

Gig economy payouts come with a critical challenge: high currency exchange rates and transaction fees. As FX rates fluctuate, gig marketplaces have minimal control over the processing costs of each transaction.

Another concern is whether the worker or the payer must compensate for the FX costs. Because of this, initiating payments in multiple currencies across the global economy becomes even more complex – depending on rates, marketplaces may even lose money on every transaction.

Transaction fees for legacy payment methods aren’t sustainable for small payments. For example, wire transfers to a bank account charge approximately 2.9% per transaction without additional processing fees. If transactions are at most $10, this can quickly become expensive and impractical. 

Why Thunes is Ideal for Global Gig Economy Payments

Thunes offers quick, secure cross-border transactions of any value. Our platform makes it easy for marketplaces and gig workers to send and receive payments in real-time. 

Here is how Thunes simplifies global gig economy transactions.

Speed and Reliability for Real-time Payments

With Thunes, initiating payouts in the gig economy is quick and reliable. We deliver instant payouts to bank accounts and digital wallets, giving gig economy workers immediate access to their funds. Unlike traditional payment systems, Thunes eliminates multiple intermediaries, ensuring swift settlement times for every payment. With one API integration, freelance marketplaces can send payouts to over 120 mobile wallet brands, three billion mobile wallet accounts, and four billion bank accounts.

They can also initiate real-time payments directly to cards. Our network supports transactions with all major card networks, including Visa, Mastercard, and UnionPay. 

As a result, creator platforms can offer and leverage these payment benefits to gig economy workers:

• Workers can choose from various payment options, enabling underbanked recipients to receive money swiftly.
• Immediate transactions which are more convenient for businesses and gig economy workers.
• Through streamlined payouts, freelance platforms can develop and grow positive relationships with professionals in the creator economy.

Security and Compliance in Cross-Border Payments

Security and compliance are imperative for all transactions, especially when dealing with cross-border payments that adhere to various regulations. However, staying ahead of these regulations takes time and effort. Thunes offers automated data security and compliance solutions in global gig economy payouts. 

Our regulated network supports compliance standards worldwide, including:

• The USA: Thunes is registered as a Money Service Business with FinCen and Money Transmitter. 
• France: Autorité de Contrôle Prudentiel et de Résolution (ACPR) issue our Payment Institution License.
• The EU: We have the EU extension of the France license, confirming our compliance with transactions in and out of the EU. 
• The UK: Thunes is an Authorised Payment Institution by the UK’s Financial Conduct Authority.
• Singapore: The Monetary Authority of Singapore issued Thunes as a Major Payment Institution.
• Hong Kong: Thunes has a Money Service Operator License issued by the Hong Kong Customs and Excise Department. 

With Thunes, freelance platforms worldwide can streamline their compliance strategy, working with a regulated payment platform that ensures swift and secure cross-border payments.

Reduced Payment Overheads 

While payouts in local currencies are typically costly due to exchange rates and processing costs, Thunes solves these barriers. 

Our platform ensures every transaction is initiated at the lowest FX rates possible. We facilitate payouts in 80 currencies across an extensive network in South America, North America, Europe, Africa, Middle East and Asia Pacific countries. 

With Thunes, there are no hidden fees or intermediary costs. We offer FX rates 10x lower than standard payment systems, making gig economy payments as cost-effective as possible. Platforms can accurately forecast how much each payout will cost them, and gig economy workers can receive money without any complications.

When freelance marketplaces initiate gig economy payouts, workers receive an instant payment notification informing them of how much they can expect to receive in their local currency. These capabilities give both marketplaces and gig workers full control over their payouts. 

Improved Gig Worker Satisfaction

Doing business with gig workers requires platforms to maintain satisfaction. The better worker relationships are, the more likely freelancers are to continue completing jobs on their platform. With Thunes, freelance marketplaces can achieve gig worker satisfaction through instant, transparent payouts at competitive rates.

Whether gig workers are in emerging markets that are often underbanked, or have a preferred payment method, Thunes can ensure they receive payouts immediately, in their preferred payment type. We provide various features to build valuable relationships with recipients through cross-border payments, including:

• Real-time reporting on transaction status.
• Instant payout confirmations.
• Enriched transaction information.
• Reduced payment errors and delays.

These advantages streamline and simplify gig economy payouts for workers and the platform. Access to seamless payments motivates workers to build valuable relationships with freelance marketplaces and complete more tasks and projects on their platforms. 

Tips for Optimising Gig Economy Payouts 

Handling gig economy payouts can become complicated quickly. Here are expert tips on simplifying these transactions for companies and workers. 

Develop a robust strategy

Creator platforms must have a defined strategy for initiating transactions in different countries. This allows them to stay ahead of sudden changes in the gig economy and the countries they send payments to. They must ensure workers receive money and how the payout system will operate globally. 

Understand different demands

Directly speak with gig workers to understand the varying demands of how they expect to receive payments and develop a professional relationship. This information will guide platforms in establishing payouts that work for them and their workers. 

Encourage clear communication

Ensure workers can communicate their concerns or feedback. Freelance marketplaces must have clear lines of communication to maintain relationships with gig workers and a successful payout system. 

Be clear with the payout policy

It’s critical to develop and maintain a payout strategy. This strategy must apply to every gig economy worker, and they should be clear on these policies from the start. This approach creates a standard for initiating payouts and what workers can expect.

Monitor and improve

Continuously monitor the gig economy payout strategy and make adjustments where necessary. Leverage worker feedback and market trends to understand how to optimise these processes. 

The Future of Gig Economy Payments with Thunes

Thunes is the ultimate solution for gig economy payouts and the many challenges they present to platforms.

Our system initiates instant real-time payments worldwide using various payment methods and ensures compliance with robust security measures. Choose Thunes for transparent, immediate payments on a global scale at a cost 10x lower than standard transactions.

Ready to accelerate your gig economy payouts? Contact Thunes today.