Enabling Marketplaces to Attract Global Talent Through Customised Payments

Online marketplaces have seen exponential growth in the last decade. With the rising uptake of digital technology, this trend is predicted to continue in the coming years. According to Statista¹, retail e-commerce sales is forecasted to grow by 56 percent over the next years, reaching about 8.1 trillion dollars by 2026 after amounting to approximately 5.2 trillion U.S. dollars worldwide in 2021.

The outbreak of the Covid-19 pandemic has exacerbated this surge; as per research, 50% of online spending² will take place on marketplaces by 2030. As a result, online marketplaces are replacing traditional service models across industries. From grocery shopping and food delivery to electronic devices and digital services, the range of products and services consumers seek online is widening.

As marketplaces ramp up their platforms and workforce to fulfill the rising demand, gig workers are presented with abundant opportunities to participate in this virtual ecosystem. A study from Upwork³ estimated that about 40% of wages come from gig work. The same study estimates that the U.S. will have more than 86 million⁴ independent gig workers by 2027. Even so, there is a marked disparity between gig workers’ workload and how they get paid.

42 percent⁵ of delivery and rideshare drivers are considering leaving gig work within the next 12 months due to low or unpredictable earnings, lack of benefits, and the high cost of performing the work. ForFor companies looking to attract and retain the best talent from across the globe, it is, therefore, crucial to address the gaps in their payment systems. Partnering with payment providers who understand gig workers’ needs and offer customized methods of instant, streamlined cross-border payments is necessary for marketplaces looking to gain a competitive edge.

More than 85 percent of gig workers in the US say they would be willing to take on more work if they were paid faster⁶. Given that payments play a pivotal role in a gig worker’s decision to take up work, traditional payment mechanisms can prove to be a hurdle for marketplaces looking to recruit talent from overseas.

Disbursing funds through traditional systems is time-consuming and costly. Transfer fees, bank fees, conversion rates, etc., which are inevitable due to the presence of numerous intermediaries, can affect a company’s revenue adversely. With approximately 76% of gig workers⁷ living paycheck to paycheck, timely payments are essential for ensuring that they’re able to manage their finances effectively.

Yet 45% have turned down a new gig because of a lengthy onboarding process, and 42% have turned down work because of the time it will take them to receive their wage. Simplifying the payment process can, thus, help companies build better working relationships and relieve freelancers’ frustrations.

Legal regulations can also be a challenge for marketplaces aiming to expand their global connectivity. Businesses have to comply with the legal requirements of the countries they operate in. However, keeping up with country-specific regulations can become a tedious task. The difference is regulations across jurisdictions increase the overall costs associated with cross-border transactions⁸.

Freelancers have varying preferences when it comes to the currency and method of payment acceptance. While some may prefer e-wallets and card payouts, others may want wire transfers or cash payments⁹. This makes it harder for marketplaces to transact payments with ease and on time, especially if the workers reside in underbanked regions. Payment partners who can enable businesses to pay independent workers in their preferred method and on demand will help businesses garner workers’ loyalty and stay ahead of the curve.

In a 2022 study by ADP, 90%¹⁰ of employers said they are at least somewhat aware of flexible pay options, but only 55% of employers offer earned wage access, which enables workers to access their cash as soon as they’ve earned it, with no waiting around for payday. 

NiumPay helps businesses simplify cross-border payouts, while offering beneficiaries multiple options to receive their money. Recipients can access their funds directly via an app, with their cards or through a centralised digital wallet. They can also collect their money at a store or transfer it instantly to their bank account. Besides making it easier for workers to receive money, the minimised need to hold beneficiaries’ banking information in turn simplifies the process and alleviates the risk associated with handling sensitive data and making traditional bank transfers.

Nium is a licensed Visa card issuer partner. This means that businesses can take advantage of Nium’s payment rails along with Visa’s global licence network to issue branded debit cards to vendors and freelancers in as little as four weeks. Licensed in 9 countries and the European Union, Nium also provides program management and advance card capabilities to BIN sponsors virtually anywhere in the world. Thus, Nium enables businesses to:

Nium’s revolutionary platform has transformed various businesses across sectors. Here’s how your business can benefit from Nium’s services. 

With Nium’s secure payment rails, payouts are safe and transaction reviews are quick unlike bank transfers. Transactions can be approved in real-time; funds can be sent to the beneficiary’s cards (in nearly 32+ markets) or directly through the NiumPay app. For businesses working with freelancers across borders, this is priceless.

Nium enables companies to reimburse workers through their preferred payment methods. Recipients have the choice to collect payments as cash, receive payouts through cards or have the funds transferred to their bank accounts.

Nium’s card-issuing program allows businesses to provide vendors with unique logins and personal debit cards – both physical and virtual.

The flexibility to pay through multiple methods, be it via multi-currency cards, bank transfers or cash, is a huge advantage for companies looking to attract talent from overseas. With Nium’s platform, businesses are able to incentivise even workers living in regions with limited banking facilities, by letting them access funds through cash picks in their local currency.

Nium allows users to manage the program’s security in one place with features like card lock/unlock, geolocation data and cardholder permissions.  Nium’s platform is DSI compliant. All transfers are end-to-end encryption, meaning transacting is secure and transparent.

Technology has eliminated geographical barriers, widening the reach of marketplaces, and the pandemic has only fueled consumers’ reliance on online services. Given the opportunity and flexibility that freelance work offers, the rate at which the gig economy is growing comes as no surprise. While this trend holds immense potential for businesses, it also demands a robust global payments solution. Marketplaces need a payments partner that can facilitate quick transactions and offer payment methods tailored to the needs of both workers as well as businesses. Nium’s payments solutions enable marketplaces to expand their reach, access underbanked segments, incentivise workers and garner their loyalty through instant, cross-border payments and customised payment methods. The Nium platform helps businesses overcome the complexities of international transactions, engage high quality talent and ensure growth in a rapidly evolving environment.

Nium, formerly known as InstaReM, began in 2015 to simplify and optimise cross-border payments. We eventually scaled the offering to serve SMEs and businesses in multiple industries.

Today, Nium utilises radically innovative technology that makes spending, receiving, and managing funds faster, cheaper, and more transparent. It’s designed to integrate with our customer’s lives and business needs seamlessly. 

We have experts on the ground working with local regulators and financial institutions. With offices worldwide, we are in a position to foster these relationships.

Contact us to learn how Nium’s business expense cards can streamline and automate your corporate finances.