Your Big Opportunity Behind Worker Payouts
Here at Hyperwallet, the process of sending high volumes of outbound payments has long been a growing business need, albeit one that has been woefully neglected by traditional financial services operators.
For the last 10 years, our payout platform has enabled businesses to make a high number of worker payouts on a regular cadence, usually monthly or weekly. Just how many transfers do we mean when we say a “high number”? Well, 5,000 a month is a good starting point; that being said, many of our customers make 10x-30x that number. Most of these payments are relatively low in value, usually under $1,000, but sometimes they can be very small—just $20 or $50.
Ahead of the Payout Push
There are many business models that need to execute high volumes of payouts in order to stay afloat (think of any company that needs to issue rebates, refunds, or royalties, to name a few). However, recent seismic shifts in the economy has presented Hyperwallet with an exceptional opportunity to further innovate in the underserved market of worker earning payouts.
In case you’ve been living under a rock, the on-demand economy continues to grow at unprecedented speeds—as does the opportunity to provide these disruptive companies with a fully integrated worker payment platform—something that’s been Hyperwallet’s sweet spot for more than a decade. For these businesses, worker retention and loyalty is a key business driver—indeed, for many of these organizations, the company’s overall liquidity is intrinsically linked to worker retention. This need for a smarter earnings payments process, one that helps foster an unbreakable bond of loyalty with a worker platform, is clear. The solution? It’s even clearer. Hyperwallet’s new worker payout platform.
The Workforce of the Future is Here
It’s worth noting that Hyperwallet’s newest product uses the term “worker”—not employee. The companies and payees that utilize this new outbound payment solution come from a wide variety of entrepreneurial-minded industries; direct sales, for example, where the individual runs their own small business under the umbrella provided by a global brand (think Rodan & Fields). There are also marketplace platforms to consider; these mainly mobile platforms help their drivers, couriers, task runners, (Lyft, TaskRabbit, DoorDash), excel as a sole proprietor.A big part of building worker affinity? A seamless, flexible, and fully-branded payout experience. Click To Tweet
Despite the seemingly broad range of business types that can benefit from this payout solution (from skincare providers to hotel reservation systems, I’m constantly amazed by how varied our current and prospective client list is!), the business imperatives and operating challenges are almost always the same. Companies that need to pay a growing contractor workforce focus a great deal of their efforts on driving worker loyalty. A big part of building that worker affinity? Being able to provide a seamless, flexible, and fully-branded payout experience across multiple channels and a growing global market.
Believe me, it’s not an easy thing to pull off. And it’s certainly not possible using traditional payment models.
Unlocking Worker Payout Choice
While there are many options for moving money across borders, there are very few options that work in the world of contractor worker payments—and even less for the type of client that we service at Hyperwallet (i.e. ones that want to provide a great payout experience). Firstly, and perhaps most importantly, these organizations demand full value delivery of funds. The opacity of international wire transfers, with their unwritten, ‘make it up as you go’ rule book on uplift fees, currency conversion, receiving charges… (I could go on and on) makes this method both expensive and impossible to track/unravel when things go wrong. This might be acceptable when sending a limited number of large value payments, but for high-volume, lower-value payouts, it simply doesn’t work.
Other payment vehicles, such as prepaid cards, can be useful in these situations—but even then, they’re not truly global in nature, and worse yet, they’re not always what your payee (or worker) wants. What is really needed is choice—choice between the convenience of local currency bank transfers (ACH), the branding of local currency prepaid cards, and the immediacy of other card options (virtual, instant issue, pay to existing card). In some situations, workers might prefer to collect their earnings using a cash pick-up method, or even (dare I say it) an old-school check. Choice is something that traditional payout systems simply cannot offer.When it comes to #payouts, smart organizations are ceding control to their workers. Click To Tweet
When it comes to payouts, smart organizations are ceding more and more control to their workers, offering flexible, customizable platform features—and that includes how they receive their earnings. The payoff? Higher worker retention rates and improved user affinity. Don’t believe me? Give your workers payments choice, full value delivery, and real-time funds access and I can practically guarantee an upswing in your workforce loyalty and user-base satisfaction.
That’s the power of offering worker payout choice.