4 Benefits of Offering Instant Payouts to Contractors
August 19, 2020
Does your fast-growing business need a better way to instantly payout gig workers, 1099 contractors or employees? Whether you run a gig platform, rely on contract labor or have employees, you likely make wage payments to higher volumes of workers, with more turnover and faster growth, making it impossible for traditional payments methods to keep up.
Across the country there are up to 57 million gig economy workers—from Youtubers to Uber drivers and Twitch streamers—and every one of these gig workers needs to be paid. But many are waiting as long as three months to be paid because cutting checks is expensive and the costs for frequent ACH payments add up.
Until recently, there hasn’t been an easy and cost-effective way for businesses with an independent contractor workforce—or even startup fintechs that need to prove their use cases—to create debit cards and launch digital payments. But Galileo Instant has created the solution. And now you can swap legacy payment methods (or skip them altogether) for turnkey instant payouts that deliver out-of-pocket cost savings, drive loyalty and create new revenue opportunities. And your gig workers, 1099 contractors or employees get paid faster and benefit from the convenience, security and safety of payment made to a debit card or mobile wallet.*
It may seem daunting to take that leap, so lean on a payments processing expert to pave the way. Here are four benefits of leveraging Galileo Instant, an ideal digital payments solution–to pay contractors and gig workers.
Start Making Instant Payouts in as Few as Two Weeks
Typically, it takes months for a business to put payment card programs in place. With Galileo Instant’s API-based payments processing solution, companies can launch a 1099 payment program and begin paying contractors in as few as 14 days. In times like these, the ability to put wages in the hands of workers more quickly is essential.
Reduce Costs by Transitioning to Digital 1099 Payments
By implementing branded digital 1099 payment cards and transitioning away from checks and ACH, you can immediately see significant cost savings. And by working with Galileo Instant, you also get the benefit of pay-as-you-go pricing, which is easy to understand and puts you in complete control.
Employers can also better support unbanked and underbanked, and cash-dependent workers who can use these digital payments solutions to receive their pay (in real time), make purchases, pay bills, transact online and more.
Streamlining Digital 1099 Payments with a Single Partner
Traditional payments programs require a web of providers, complex handoffs and lengthy program development timelines. Some businesses must navigate six or more outside providers just to get a 1099 payment program up and running.
That’s far too big of a project for fast-growing businesses that want to stay focused on core offerings.
By working with a digital payments processor that manages and delivers a turnkey solution from end-to-end, employers can stick to what they do best. Businesses can engage with Galileo, which partners directly with the sponsoring bank, payment network, card manufacturer and more on your behalf.
Realize a New Revenue Opportunity with Revenue Sharing
Galileo Instant clients earn and keep a share of the debit card interchange revenue each time cardholders make purchases or pay a bill, creating a sustainable revenue stream and a long-term business model that rewards your success.
It’s a win-win for businesses partnering with the right payments processor to deliver digital instant payouts to 1099 contractors, gig workers or employees. Employers can see cost savings and realize new revenue opportunities, all while paying their workers in new and innovative ways that enable them to make purchases, pay bills and transact online.
Ready to spin up your own branded 1099 payment card in as few as 14 days? Get started today.
Enjoy our Insights?
Why Customer-Centricity Is a Must in B2B Embedded Finance
Embedded finance can fulfill booming business demand for consumer-like offerings. What can you do to get started with your B2B company?
Meet Bobby: Guiding Galileo's Architecture and Mentoring Others with a Client-First Mentality
Meet Bobby Ball: Principal Software Engineer at Galileo. With a passion for our client-first culture.
Anti-Fraud Playbook: 6 Tips to Jumpstart Payment Fraud Prevention
Your business can no longer afford to lose to fraudsters. Here are 6 tips to help you jumpstart your fraud prevention framework and get ahead of fraud losses.
Beginner's Guide to Open APIs in Banking for Fintechs
Learn how open banking APIs are reshaping the financial services industry and how Galileo's banking APIs allow you to quickly create payment card programs.
What Are the Business Benefits of Using Fleet Cards?
Learn more about how companies with vehicles or equipment can leverage fleet cards to streamline purchases, better manage spending and glean actionable data for further savings.
Why Core Modernization and Cloud Migration Matters For Banks
Customers–both consumers and business users alike–are more exacting than ever when it comes to digital banking–and many of their demands are going largely unmet.