Borderless gigs: unlocking opportunities in the gig economy

How gig economy platforms can build a loyal workforce with instant cross-border payments.

Shifting demographics, digitalization and the desire for greater autonomy and job satisfaction is changing the world of work. People are supplementing their main income in the gig economy or with a side-hustle.

So much so, the gig economy accounts for up to 12% of the global labor market, according to a World Bank press release. Meanwhile, a Morgan Stanley research note reports that freelancers in the US represent 35% of the working population, which could grow to 50% by 2027.

Not for the first time, Covid-19 proved to be the mother of invention or re-invention. It forced people to replace lost income or earn their living in new ways. Online gig platforms connect customers with workers and have helped the latter monetise their time and skills.

This includes create-to-earn platforms like YouTube and TikTok and rent-to-earn platforms for holiday lets and ridesharing. Then there’s food delivery and task outsourcing for everything from assembling furniture to translation, web design and other professional services.

The gig economy goes global

Online gig work is not only a developed-country phenomenon. It’s also becoming a popular source of employment in developing countries, driven by local gig platforms and demand from the developing world.

According to the World Bank report Working Without Borders, there are 550+ online gig platforms worldwide, headquartered in 60+ countries with workers in 180+ countries. Low- and middle-income countries account for 40% of traffic to such platforms, underlining the significance of the sector to developing countries.

However, online gig platforms face headwinds. To continue growing, they must attract and retain workers in multiple countries, including those based remotely, amid increasing competition. Gig platforms must collect and pay out locally. Yet getting access to local pay-in and payout infrastructure can be complex. And maintaining connections in every country where they operate, even more so.

Either platforms enter into complex, ever-changing bi-lateral agreements to secure coverage. Or they work with localized, specialist providers in each country. But neither option really scales, even for the biggest players.

A smarter solution for gig platform payment

Inpay offers instant, cross-border payouts that gig workers increasingly demand via its proprietary banking network.

That’s true across 36 European countries with Instant SEPA, and many more further afield, including traditionally complex corridors in APAC, LATAM and more.

Wages arrive in full which is great for workers. And even better for gig platforms, as payouts are cheaper than traditional bank transfers, debits or original credits to cards.

Inpay also offers Open Banking-enabled pay-ins, which are more convenient for gig operators’ customers. And represent significant savings vs card payments for gig operators.