Real-time pay is on the horizon and businesses must ensure they have the systems in place ready for when it arrives. Real-time pay aligns modern workers with their daily schedule whilst improving their financial and mental wellbeing.
IGsend from Income Group uses Faster Payments to ensure transactions from employers to employees are made instantly, 24/7 365.
Register to see how Income Group can ensure your business is ready for real time pay and you’ll be entered into our competition to win free ice cream from IcyCurls for your colleagues.
Get set for real-time pay and enter the competition to win free ice cream for your colleagues
Real time pay – full circle
An example of real-time pay is cash payments – where time, goods or service can be exchanged for physical currency. Being widely recognised, trusted and accepted, cash offers a transparent certainty that the exchange is fair and frictionless.
As technology advances and financial markets become more complex, payment delays and transaction barriers become more prevalent.
Although the technology opened doors previously unavailable, additional security checks and processing calculations hindered transaction clearing time. This lead to a more regulated platform and the necessity of paying workers less frequently to manage the strict deadlines and increased administration tasks.
Real-time payments work with open banking to remove these barriers, creating an environment where businesses can pay employees and suppliers quickly, easily and cost-effectively.
Working examples of real-time pay
Uber Instant Pay
People who drive with Uber in Canada can be paid every day, up to 5 times a day – even on weekends or holidays.
Instant Pay gives drivers more control over when they are paid. So whether they are saving up for something big or hitting the road to pay an unexpected bill, drivers can simply cash out when they need it.
Uber believe that it’s the drivers money that they have earned, so therefor they should be able to experience the joy of getting those earnings when they want.
Earnings are deposited every morning to each driver’s Mastercard. They also have the option to cash out available earnings anytime—up to 5 times per day.
Thanks to a new integration in its tech stack, Domino’s Pizza franchise owners in the US can instantly pay employees wages, tips and mileage.
Used by 3,000 Domino’s franchises throughout the US, Domino’s franchise owners can instantly pay employees onto their digital debit card, without requiring pre-funding, cash reserves, or changes to payroll.
Along with Faster Payment options, franchises can also provide employees financial wellness offerings like budgeting tools.
Grubhub has a feature called Instant Cashout, that allows its drivers to access their earnings immediately.
Instant Cashout is designed to give drivers more flexibility when it comes to accessing their pay in a safe, reliable way, Grubhub Product Manager Mrugesh Bavda said in a statement.
Instant and flexible pay options may provide a competitive advantage as both restaurants and delivery companies face employee shortages that have hurt business. The flexibility of gig work is attracting drivers to ride-sharing platforms over pizza delivery jobs, with 44% of drivers citing that they prefer working for firms like Uber than payroll positions for restaurants, per BTIG data.
More than 60% of drivers use Instant Cashout and do so three times per week on average, the company said.
This offering appears to be in line with worker interests. Eighty percent of workers prefer to have their pay automatically deposited as they earn it, according to a recent study conducted by The Harris Poll. Seventy-eight percent of respondents said free access to on-demand pay would increase their loyalty to an employer.
Ensure you are ready for real-time pay
Working with our partners Mastercard, IGsend from Income Group facilitates real time payments via IGsend. An easy to use online platform, IGsend gives business owners and busy payroll teams more time to process transactions, with funds clearing instantly.
Fill in a short form to register and see how Income Group can get your business ready for real time pay. Registration also enters you into our free competition to win ice cream from IcyCurls for your colleagues this summer.