Mastercard Initiative Gives Gig Workers Early Access to Earnings
According to a collaborative study from Mastercard and PYMNTS, gig workers in the United States earn over $1.4 trillion each year. Unfortunately, payment delays have caused 87.8% of those workers to live paycheck to paycheck. The majority (58.2%) supplement their earnings with savings until they get paid, but almost 30% do not have the savings to cover their costs.
Mastercard has developed a strategic partnership to help gig workers bridge the gap between paydays. The company is using its push payment system, Mastercard Send, to “provide a new wage system [that] is in tune with the workforce of today.”
Mastercard and Evolve Bank & Trust have joined forces to promote the Branch app. This application provides interest-free advanced payments to gig and hourly workers. Branch offers budgeting solutions, including notices about upcoming bills and a countdown to the next payday.
Through Mastercard Send, Branch is able to push funding directly to debit cards in real time. There is no lengthy waiting period for workers to receive their funds. The funds are available on ‘virtually all debit cards’ within seconds.
The study showed that gig workers received $236 billion in payment advances in 2018, and 31.8 million people would have used advanced payments if they had been available. Mastercard’s newest initiatives aim to bring those services to a larger sector of the workforce.