In the On-Demand Economy, the Payee is King
A payee focused platform should enable organizations to quickly and
transparently distribute funds to artists, policyholders, contractors, content creators, suppliers, and resellers anywhere in the world. The payee’s user experience should be straightforward and offer multiple payment options to fit their current needs. And the paying company should have a platform that is more flexible than traditional payout solutions with simplified and streamlined tax and cash management. Most legacy payment systems fall short.
Business is continually becoming more global and many workers opt to be self-employed. These realities highlight the need for a payee focused payment platform that can provide speed and flexibility. A “best in class” platform has several key attributes.
Worldwide payouts in a wide range of currencies
Freelancers can be found around the world. But these on-demand workers are growing exponentially in countries like India. And many are mobile workers when need to access commissions or vendor payments while traveling. Therefore, the platform needs to support emerging markets in addition to the “developed” countries. And the payee must be able to get funds in the currency of their choosing.
Multilingual, customer centric payee support
As small business owner’s depend upon quick payment to manage cash flow, gig workers demand personalized support. A payee focused platform should provide quick, efficient support in the language of their choice. And they need to feel that they are as important to your business as our Fortune 500 clients.
Simple and transparent fee structures
Payment platforms provide a valuable service and should be compensated accordingly. But if the payee needs a law degree to read the T&Cs then the platform is not customer centric. Companies like Paypal, Square and Stripe have been very successful in the merchant processing world by providing straightforward pricing instead of the 100’s of processing fees that make up the associations’ fee charts. Get compensated for your efforts, but make it easy for everyone to know what they are paying.
Fast and efficient funds delivery
This should be self-evident. Payees want to be paid as soon as possible and payers want to hold on to the money until the last minute. The on-demand economy has swung the pendulum towards faster payments. A modern platform needs to accommodate same day payments in a cost-effective manner to meet and exceed expectations.
A broad range of self-directed payout methods
This is the most important aspect of a modern payee focused platform. Most offer one or two options, but choice is key. Some of the new platforms can push funds to debit cards, prepaid cards, credit cards and mobile wallets. Others rely on ACH or checks. And a few offer cash payouts at retail. But to truly serve a payee’s needs, the platform should include card, cash, direct deposit and check options in multiple countries.
The on-demand economy is democratizing business and giving millions of people control over how they work. Payments platforms need to support this ecosystem with tools that help both payer and payee. If you would like to evaluate your current solution and get recommendations on the right platform for your company, schedule some time to speak.