How Prepaid Cards Can Expand the Gig Economy

Using a prepaid business card at a laptop

The gig economy is becoming more than a “side hustle” for U.S. workers. According to PYMNTS.com, only 47 percent of those participating in the gig economy have a full-time job. And over 75 percent of those surveyed without a full-time job said they wouldn’t have it any other way.

The gig economy presents opportunities for both employees and employers. Employees have the freedom to determine what projects they’ll accept and when. Employers can staff short-term projects and save on the costs of benefits typically paid to full-time staff.

But employers may lose out on those benefits if they don’t have an efficient way for gig workers to handle business expenses.

According to PYMNTS.com,

Like traditional workers, gig workers appreciate expedience when it comes to getting paid. In fact, the Gig Economy Index found 84.5 percent of those surveyed would take on more gig work if they were paid faster.

Helping freelancers avoid work-related expenses could also encourage greater participation. Workforce spend management solutions could provide them a better option for taking on gig work-related debt, and help employers manage funds spent.

The same solutions can shield gig workers from the financial burden of paying out-of-pocket for work-related expenses. Instead of swiping personal credit cards for building materials or software subscriptions and waiting weeks to get reimbursed, workers can use flexible payment cards to pay for these items.

Business prepaid cards offer one solution. With business prepaid cards, employers can issue cards to their short-term workers, maintain control over limits, and alleviate the accounting mess that can come with employee reimbursement. Workers can avoid having to advance their own money to cover purchases that they make for their employers, making it more likely they’ll accept the gig in the first place.

And if it doesn’t work out, employers can turn off the card with the click of a mouse.