Affinity Plus Credit Union has unveiled a new real-time payments 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 securely receive instant payments from financial institutions and service providers across the U.S., Affinity Plus said in a Thursday (Aug. 22) news release. The new offering will benefit all members, the credit union said, particularly small business owners and gig workers.
Instant access to funds can help businesses manage their cash flow and navigate uncertainty, and gives gig workers more financial stability, the credit union said, especially when they are faced with unexpected expenses. The release added that this new service speeds up emergency insurance disbursements and sends disaster relief funding more quickly to those in need.
“For many workers, especially those in the gig economy, waiting even a few days for payment can significantly impact their financial stability and earning potential,” Affinity Plus Director of Operations Jacquie Twedt said in a statement. “With this real-time payment service, Affinity Plus is empowering all our members to manage their cash flow more effectively, ensuring timely access to funds and enhancing their overall financial wellbeing.”
More freelancers are turning to real-time payments to widen their access to instant funding.
According to the PYMNTS Intelligence report “Generation Instant: Freelancers Use Instant Payments to Reduce Financial Hardship,” 37% of freelance workers use instant payments to alleviate financial stress. Meanwhile, 30% said that instant access to their funds stay on top of their bills, while 28% reported that instant payments are cheaper than other alternate payment methods, helping them save money.
Other companies are also moving to give gig workers faster access to their funds.
Cross River Bank announced a partnership with payments solution provider MassPay on July 9 designed to expand access to domestic instant payments, particularly in sectors like the gig economy.
“The rise of independent contractors, gig and creator economies and online marketplaces has revolutionized the way people work and transact, creating a growing demand for efficient, reliable, and instant payment solutions,” the companies said in a news release at the time. “Together, Cross River and MassPay will address this demand by ensuring seamless transactions, enhancing the financial experience for both businesses and individuals.”