Payfare, Stride partner on real-time payments for gig workers

Food delivery drivers last week claimed a win in the ongoing gig economy battle between employers and their workers, who are often classified as independent contractors instead of employees and are deprived of the benefits that come with full employment. Last Thursday, the New York City Council approved a legislative package that, among other things, established a minimum payment per trip for delivery drivers. But for the more than 70% of gig workers living paycheck to paycheck, that money is only good if it’s in their pockets.

Enter Payfare. The fintech company announced on Tuesday a new partnership with Stride Bank to expand its real-time payment (RTP) capabilities for gig workers by leveraging bankers’ connection to The Clearing House Payments Company’s (PayCo) RTP network. The partnership will enable more secure payments that are settled within seconds on a RTP network that operates even after bank hours, on weekends and during bank holidays.

Partnering with Stride will give Payfare (TSX: PAY.TO) access to PayCo’s massive payment system infrastructure. PayCo is run by The Clearing House Association, an organization composed of just about every major U.S. bank, including Bank of America (NYSE: BAC), Capital One (NYSE: COF), JPMorgan Chase (NYSE: JPM) and Wells Fargo (NYSE: WFC).

“We are thrilled to be adding real-time payment capabilities to Payfare’s existing payout and digital banking solutions,” said Marco Margiotta, CEO and founding partner of Payfare. “Our mission is to empower financial security for every gig worker. As the gig economy continues to grow, the RTP network’s broad reach will help us to further scale our solution while providing fast, secure options to our partners and the gig workers we support.”