Over the last decade the gig economy has risen to global prominence, increasing worldwide at an average of 17% every year.
This rise has been fueled by the gig economy’s flexibility and reach, lowering costs for employers as they hire on an hourly or per-project basis while allowing workers to earn simultaneously from multiple sources. Also, the vast range of on-demand work available to individuals through platforms and marketplaces has amplified the prevalence of remote work.
This reflects a global trend; while most initial activity was in the U.S and Europe, emerging economies are catching up. China is now the second-largest gig economy market, with Brazil third and India fifth, including a 150% rise in the number of Indian freelancers over the past year. In Africa, it’s estimated that 80 million young people will be involved by the end of the decade. These highly populated nations have huge potential for growth, as they develop access to the digital infrastructure for on-demand workers.
To serve the needs of gig workers in different countries, including those who are unbanked, access to a range of payment options is still key – from wallets to virtual debit cards. As more people around the world adopt freelance, contract, and gig work, there is more information on what to consider before working with a platform, including information about fees, currencies, timing, and security of payments. While speed and reliability matter, so does the need to offer options for how a worker receives their payment.
The gig economy will continue to expand in the next half-decade as millennials and generation Z become a larger proportion of the workforce. Being digital natives, they’ll expect financial services that are more responsive to their specific needs and pains.
Vital requirements will include:
In five years’ time the companies that have thrived in the gig economy will be those who embraced and embed simple, seamless and scalable payments strategy. Nium’s vision is of a digital world where money moves quickly, safely, and easily across all payment methods and to all regions That’s why Nium’s modular platform that is both flexible and intuitive. Everything we offer is designed to take care of regulatory issues and payment delivery seamlessly behind the scenes, setting providers free to innovate.
To learn out more about how gig platforms can succeed in a changing world, download the eBook: Paying It Forward: The Future of Payments in the Gig Economy, or get in touch with a Nium payments expert for a personalized consultation.