Citi Perspectives 2024 E-commerce Edition

Anupam Sinha North America Head of Payments, Citi Treasury and Trade Solutions Josh Seiden North America E-Commerce Business Development, Citi Treasury and Trade Solutions 14 | Services Citi Perspectives obtain these workers is getting tougher as many of these individuals have well-known brands competing for their services. Several businesses can differentiate themselves by offering unique perks and a strong company culture; however, more companies are prioritizing quick, convenient and seamless payments to gain a competitive advantage. One of the key benefits as to why many workers opt to work in the gig economy is the ability to be in control of their work and schedules. 4 This desire for optionality impacts gig workers’ preferences for how they want to be paid. Workers want as little administrative burden as possible and to be paid as fast as possible via their desired payment method. Nearly 60% of gig workers are even willing to pay a fee for an immediate payment. 5 According to the Federal Reserve, 16% of adults do some gig work every month. 6 Some of these workers may need accelerated payments to pay for gas, meals and other household expenses, making fast and efficient payouts essential to their stability. The increased availability of alternative payment methods can improve workers’ financial health by enabling them to better plan their budgets, cover immediate expenses or save for future needs. In addition to paying gig workers and part-time employees, there are several scenarios where companies may need to make payments directly to consumers, including refunds, rebates and other forms of incentives. For example, an online retailer may want to strengthen its customer experience with optionality of how to issue a refund; a cellphone provider may want to strengthen its customer relationship with a rebate; or an insurance company may want to improve customer satisfaction by paying a claim quickly. Proffering an omnichannel solution Ultimately, businesses wanting to give their workers and customers enhanced payment flexibility may need to access many platforms and apps. This can be a manual, time-consuming process that leaves many businesses open to potential risks such as entering incorrect payment details or fraudulent activity. Integrating various digital wallet solutions and customer onboarding processes into existing ERP and TMS platforms can also be complicated. Payment challenges are not just an inconvenience. By reducing operational efficiency and creating poor customer experience, there is potential to hinder growth. As a result, companies are looking for banking providers to improve the overall payment experience while decreasing risk and cost for their organizations. That is why Citi has been investing heavily in improving the payee experience though our Citi® Payment Exchange solution. To address the challenges facing companies seeking to pay gig workers, creatives or freelancers, Citi recognized that an innovative payment solution was required. The bank’s priorities were payment optionality and a quality client experience to ensure that payments are seamless and offer sufficient speed and flexibility to meet the expectations of workers and customers. Innovative solutions like Citi Payment Exchange are fundamental to improving the payment experience for both the payer and payee. 4 https://www.bls.gov/careeroutlook/2016/article/pdf/what-is-the-gig-economy.pdf 5 https://www.pymnts.com/disbursements/2023/nearly-60percent-of-freelancers-willing-to-pay-for-instant-payouts/ 6 https://www.federalreserve.gov/publications/2023-economic-well-being-of-us-households-in-2022-employment .htm Listen to this article