Fast payment rails alone do not guarantee prompt gig payouts
Fast payments can lower gig workers’ costs and improve liquidity, but platforms may still delay payouts to earn returns on retained funds. A Bank for International Settlements (BIS) paper calls for interoperable rails and prompt-payment safeguards.
Instant rails, delayed earnings
Jose Aurazo, Holti Banka, Colin Colter and Jon Frost find that fast payment infrastructure enables immediate remuneration but does not remove platforms’ incentives to retain funds.
Platforms can earn returns on balances while paying workers weekly; authorities can require prompt payouts, including daily payments for workers dependent on gig income.
A 2017 survey found that 84 percent of workers would undertake more gig work if paid faster.
The paper cites an estimated 435 million online gig workers globally in 2022 and 653 active platforms in 2023, while warning that inconsistent definitions, duplicate registrations and inactive profiles complicate measurement.
Payment needs differ between cash-flow-dependent delivery workers and project-based professionals.
Open networks across borders
The authors advocate low-cost, interoperable payment systems linking banks, mobile money providers and fintechs rather than closed platform networks.
Cross-border interlinking can reduce settlement delays, foreign exchange costs and reliance on intermediaries.
They warn that stablecoin payouts introduce risks involving irreversible transfers, uncertain backing, absent deposit insurance and dollarisation.
Proposed safeguards include clear fee disclosures, fraud controls, dispute procedures, financial education and easier account access.
Speed is not protection
The paper distinguishes technical payment speed from platforms’ actual payout practices.
Its policy case combines faster infrastructure with worker protections rather than treating speed as sufficient.
The authors call for empirical research on payment outcomes and rules requiring prompt payouts.
Source: The gig economy and digital payments
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