Greater employee financial wellness, simplified by embedded finance

In today's fast-paced and competitive digital economy, employers of large hourly and gig-based workforces and online marketplaces face a major challenge—continually delivering the benefits and incentives their workers and platform users value (and even demand). 

One effective solution for this is leveraging consumer and commercial financial hubs that offer digital banking tools and instant payouts. These hubs, built on embedded finance, address key issues for employers, employees, marketplace providers and their users, resulting in a more satisfied and loyal workforce and happier gig workers and sellers.

The financial wellness challenges facing employers—and employees

Common challenges for companies with large teams of hourly workers and online marketplaces include:

• Income predictability: Workers of all types often struggle with the unpredictability of income and the traditional pay cycle, which leads to financial stress.

• Employee benefits: Providing competitive benefits while managing costs is a constant balancing act for employers. And embedded finance employee benefits, such as accelerated wage access (AWA), are highly sought-after.

• Differentiation: Standing out from competing platforms and employers is crucial for attracting—and retaining—top talent.

Helping people improve their financial situations—whether by offering faster access to wages, swift payment of invoices or rapid settlement of sales—may be easily accomplished with embedded finance, especially for companies not operating in the banking sector. 

Hear from our CEO Simon Khalaf as he joins CNBC’s “Closing Bell: Overtime” to discuss consumer spending and why most of the workforce wants instant pay.

How embedded finance employee benefits solve these challenges 

Deploying a financial hub built on embedded finance enables businesses to pay people quickly and provide an array of financial services not previously possible: 

• Faster access to wages: Workers prioritize faster access to earnings. Nearly 34% of employees in America want access to their wages as they earn them rather than waiting for a traditional payday, according to the 2023 “Getting Paid In America” survey conducted by PayrollOrg -- a 13% increase from the prior year. 

Plus, according to the 2023 Gig Payments Report we created with Branch, 79% of gig workers would choose one platform over another if it offered instant payouts without fees. By offering instant payouts, employers can attract and retain workers more effectively, addressing their most pressing financial needs and fostering loyalty.

• Payroll solutions with financial perks: Financial hubs offer perks and benefits for both employees and their employers, such as:  

• Fee-free ATMs: Allow workers to withdraw cash without incurring additional fees

• Bill pay services: Simplifying the process of managing and paying bills for employees

• Instant funding and in-store cash loads: Providing flexibility and convenience for day-to-day financial management for the employer

By equipping workers with these tools, employers may significantly enhance their financial well-being, making their platform more attractive than competitors, all while supporting employee financial health.

• Providing employee financial assistance programs: Empowering workers with employee financial assistance programs transforms their financial landscape. Customized rewards and everyday banking tools let people easily manage their financial affairs. This empowerment may lead to higher job satisfaction and employee retention.

• Revenue generation can offset costs: Financial hubs enable employers to generate new revenue with card programs through interchange fees, offsetting payroll costs or funding additional benefits for workers. A well-implemented card program can optimize capital, create new revenue streams, lower the overall cost of payroll and potentially allow the employer to offer more competitive wages and benefits without straining their budget.

• Supporting gig workers and independent contractors: According to a 2023 study on the gig economy by Legal & General Group Plc U.S., 65% of freelancers worry about job stability and income predictability, while 60% struggle with managing their taxes. By offering tailored financial solutions, employers can alleviate these concerns, as well as attract and retain these workers more effectively.

Furthermore, many gig workers operate as commercial entities, so a financial hub can make their lives easier by putting tools to support all of their specific financial needs—such as business-expense-related rewards and simplified tax returns come year-end—at their disposal.

83% of gig workers say they’re interested or would be open to financial services offered by the gig platforms they work with.

Choosing your embedded finance partner 

When considering an embedded finance partner for pay solutions, Marqeta stands out for many reasons:

• Tailored solutions: Unlike one-size-fits-all instant pay solutions, Marqeta allows employers to tailor their AWA solutions, ensuring that the solution meets the specific needs of the business and its workers while keeping the brand front and center.

• Comprehensive banking tools: Marqeta's suite of digital banking tools supports the full cardholder lifecycle, including digital wallets, fee-free ATM access, bill pay and custom rewards, making employees’ financial lives easier.

• Revenue sharing: Employers can share in the revenue generated from their card programs, unlike traditional earned wage access (EWA) providers, which typically keep the interchange earned.

• API integration: Marqeta offers an end-to-end platform with over 370 APIs across cards, accounts and money movement. This extensive API integration allows employers to embed financial services directly into their existing platforms, reducing reliance on third-party vendors.

• Proven track record: Marqeta powers market-leading AWA use cases—such as with our recently expanded partnership with Uber—which are redefining how people get paid. This proven track record demonstrates the effectiveness of Marqeta's solutions in real-world applications.

• Data insights: Access to valuable data insights on workers helps employers make more informed decisions about how to better meet the needs of their workforce.

Consumer and commercial financial hubs offering digital banking tools and instant payouts address critical challenges for employers of large workforces and online marketplaces. These hubs attract and retain workers by providing faster access to wages, comprehensive financial tools and tailored solutions.

Marqeta is uniquely positioned to enable companies to deploy embedded finance to offer competitive benefits, generate revenue and empower their workers—creating a more satisfied workforce and more loyal platform users.

Ready to get all of these benefits for your business and your employees? Contact our sales team to get started.