Affinity Plus Credit Union has introduced a new real-time payment service for its members, giving them instant access to their funds.
Through the FedNow® service and RTP® network, the credit union will enable its members to receive secure instant payments from financial institutions and service providers across the U.S., Affinity Plus said in a press release Thursday (Aug. 22). The new offering will benefit all members, the credit union said, especially small business owners and gig workers.
Instant access to funds can help businesses manage cash flow and navigate uncertainty, and gives gig workers more financial stability, the credit union said, especially when they face unexpected expenses. The press release goes on to say that this new service will speed up emergency insurance payouts and send disaster relief funds to those in need more quickly.
“For many workers, especially in the gig economy, waiting even a few days for payment can significantly impact their financial stability and earning potential,” said Jacquie Twedt, chief operating officer of Affinity Plus, in a statement. “With this real-time payment service, Affinity Plus enables all of our members to manage their cash flow more effectively, ensure timely access to funds and improve their overall financial well-being.”
More and more freelancers are using real-time payments to expand their access to instant funding.
According to the PYMNTS Intelligence report, “Generation Instant: Freelancers Use Instant Payments to Reduce Financial Hardship,” 37% of freelancers use instant payments to ease financial pain. At the same time, 30% said that having instant access to their funds helps them stay on top of their bills, while 28% said that instant payments are less expensive than other alternative payment methods, helping them save money.
Other companies are also making efforts to give gig workers faster access to their funds.
Cross River Bank announced on July 9 a partnership with payment solutions provider MassPay to expand access to instant domestic payments, particularly in sectors such as the gig economy.
“The rise of independent contractors, gig and creator economies, and online marketplaces has revolutionized the way people work and conduct business, creating a growing demand for efficient, reliable, and instant payment solutions,” the companies said in a press release at the time. “Together, Cross River and MassPay will meet this demand by ensuring frictionless transactions and enhancing the financial experience for both businesses and individuals.”
