For most marketplaces, payment processing is treated as a cost center—a necessity to move money from client to worker. But what if payouts could become a revenue driver?

That’s the promise of Early Pay: allowing freelancers and gig workers to access their earnings instantly while creating new income streams for the platform. Done right, Early Pay doesn’t just reduce worker churn—it increases transaction-level monetisation.

Why Early Pay Exists

Workers don’t want to wait weeks for payouts. Fuel, rent, and bills don’t pause for net-30 invoices. Early Pay bridges the gap by factoring invoices or releasing earnings immediately, often for a small service fee.

For platforms, that “speed premium” is where the economics kick in.

The Revenue Uplift Model

Here’s how Early Pay monetisation typically works:

1. Base transaction fee – Platforms already charge ~10% on transactions as service fees
2. Early Pay fee – Workers opting into instant or next-day payouts pay a small additional fee (2%).
3. Blended uplift – Even if only 10–20% of workers choose Early Pay, this can increase per-transaction revenue by 3–5x compared to standard processing.

Example:

• Marketplace moves $15M annually.
• Base fee: 10% = $1.5M revenue.
• If 15% of volume uses Early Pay at 2%, that’s another $45,000.
• Total = $1.545M, a clear uplift without changing the base commission structure.

The Economics in Practice

For Workers

• Benefit: Immediate access to earnings, improved financial security.
• Cost: Small fee (usually less than the cost of a payday loan or credit card advance).
• Outcome: Higher trust in the platform and lower churn.

For Platforms

• Benefit: New revenue stream on existing transaction flow.
• Cost: Minimal operational overhead when powered by an embedded provider.
• Outcome: Higher transaction margin and improved worker retention.

Why Early Pay = Lower Churn

Financial stress is one of the top reasons freelancers leave a platform. If competitors pay faster, workers switch. Early Pay gives marketplaces a built-in retention mechanism, keeping workers engaged, active, and loyal.

This means fewer dollars wasted on re-recruitment, onboarding, and incentives to attract new workers.

MyGigsters: Turning Early Pay Into Platform Revenue

At MyGigsters, we’ve designed Early Pay as an embedded financial service tailored to marketplaces and gig platforms:

• Invoice factoring model: We advance 100% of earnings at a transparent service fee.
• Revenue uplift: Platforms earn up to 5% per transaction uplift when workers opt for Early Pay.
• No capital lockup: MyGigsters partners with debt facilities—platforms don’t tie up their own cash.
• Seamless integration: One API for payments, payouts, and compliance.
• Worker-first experience: Transparent fees, instant settlement, and embedded benefits.

This means platforms can monetise payouts without risk and create a stickier relationship with their workforce.

Final Thoughts

The economics are simple: Early Pay transforms payments from a cost to a profit center. Marketplaces benefit from higher revenue per transaction, workers benefit from immediate financial access, and loyalty deepens across the ecosystem.

In a competitive gig economy, Early Pay isn’t just a feature—it’s a revenue strategy.

👉 With MyGigsters Early Pay, platforms can unlock this opportunity today.

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