Are you new to the term “gig economy”? If so, you should know this term denotes a labor market observed Bahaa Abdul Hussein. Yes, it denotes a group of people, who work on a freelance basis or short-term contracts. This means that those in the gig economy do not have permanent jobs. When you work in this economy, you will be persistently exposed to last-minute deliverables.
In recent years, the gig economy has achieved tremendous growth in many countries. The reason is that many people these days show interest in working as freelancers. With a growth in this trend, it becomes important to have convenient and efficient payment methods.
In the modern working landscape, digital wallets are undoubtedly game-changers. It helps both employers and gig workers. Here, we will understand how digital wallets are transforming the way contractors and freelancers are paid:
Convenient and Instant Payments
The convenience and quickness they offer make digital wallets the best choice for freelancers. When you take the case of traditional payment methods like bank transfers, they can be slow. They can take days or even weeks to process.
On the other hand, in digital wallets, sending and receiving payments happen instantly. In turn, the frustration of waiting times is eliminated. This is beneficial not only for employees but also for employers. The latter can rightly compensate the former as a result.
International Accessibility
Freelancers can work for employers from any part of the world. So, cross-border payments commonly happen in the gig economy. For this global nature, digital wallets are the best option. For cross-border transactions, the charges are often lower compared to traditional payment methods. When they have digital wallets, freelancers can apply for cross-border clients. The reason is that they can stay assured of easy receipt of payments.
Improved Security
In the gig economy, security is a very important concern. When you take the case of digital wallets, they give the highest priority to security. For this purpose, they follow authentication and encryption processes. These processes safeguard sensitive financial details. In turn, the risk of fraud is reduced. Freelancers and employers can stay assured that their financial transactions remain protected. This is because of the state-of-the-art security measures.
Cost-Effective Solution
When you take the case of the traditional banking system, they come with different charges. For instance, they carry currency conversion costs and wire transfer charges. Particularly, the cost is higher for international payments. On the other hand, digital wallets offer cost-effective solutions with much lower or no transaction charges. This happens particularly when peer-to-peer payment apps are used. It means that the money they earn gets into their pocket for freelancers. This is a considerable advantage for the gig economy as a whole.
Apart from these benefits, transparency and tracking are other benefits digital wallets can bring to the gig economy. The article has been authored by Bahaa Abdul Hussein and has been published by the editorial board of Fintek Diary. For more information, please visit www.fintekdiary.com.
