Stripe gives gig-economy workers instant pay

The gig economy has made getting a ride, a place to stay and a babysitter faster.

Now those workers can be paid as fast as they can do the work.

Stripe, the Internet payments firm, rolled out Tuesday Instant Payouts, which will allow gig-economy workers to receive pay for their work “within minutes” to their Visa or MasterCard debit cards, TechCrunch reported.

The service will likely make on-demand work attractive to many contractors and service providers, who have sometimes struggled with actually getting paid. After all, on-demand platforms such as Uber and Airbnb are not only in the business of attracting customers but also people to provide services.

Stripe, which is based in San Francisco, had made Instant Payouts available to just a few firms, such as Lyft, Care.com and goPanache.com, a barber service.

Lyft, which calls the service Express Pay, launched it 11 months ago. Now, the ride-hailing firm pays 50 percent of its drivers this way, Wired says. Stripe takes 1.5 percent of every payout.

Uber has a similar program called Instant Pay with GoBank and PayPal’s Braintree offers Venmo Payouts, TechCrunch points out.

These behind-the-scenes money services come as more people do on-demand or contract work they find through online platforms, according to Paul Oyer, an economics professor at Stanford University.

Above: Lyft’s signature mustache (Courtesy of Lyft)

 

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