New payment tool for flexible workers in the gig economy

With the number of flexible workers growing every day, a gig economy is unfolding in the Netherlands in which temporary insourcing is the norm. Jobs are making way for projects – independent entrepreneurs, or gig workers, are replacing permanent employees. Examples are freelance babysitters, temporary staff and parcel couriers who work on an hourly basis.

Digital platforms are accelerating this process by matching supply and demand at low transaction costs. Flexible workers are happy with the flexibility, but often have to wait a long time to be paid. It can take weeks after completing a shift for them to receive theirpay.

Instant payment

ABN AMRO is introducing a new instant payment service that makes it easier for flexible workers to decide themselves when their invoice is paid once the work is done. This shortens the time between when the work is delivered and payment for their services from a number of weeks to one second. Freelancers have complete control over their earnings.

Growth

The first pilot partner – babysitting platform Charly Cares – signed up to use the new service late last year, and now Packaly, an on-demand parcel delivery service, is using it too. The service is gradually being rolled out in a pilot phase with bicycle couriers, who no longer have to wait for their pay; payment is made available directly after delivery. ABN AMRO expects to start a third pilot very soon in which temporary workers will use its new service.