Gabriel Grisham is senior vice president at payout orchestration platform PayQuicker.

Every employee would like to see payday come around more often. In our fast-paced world, the standard bi-monthly payment schedule does not align with modern financial needs. Instead of continuing to count down to the 15th of the month, many employees are calling for the death of the traditional payday in favor of on-demand payment schedules, where employees can access their earned wages whenever they want. 

With new tech-powered payment services, workers gain complete control over their payment schedule and, as a result, are more encouraged to pick up gig jobs. Instant pay technologies integrate seamlessly into existing payroll software, providing HR departments some relief, and it ensures security and regulatory compliance. 

Instant payments are an opportunity for companies to meet overwhelming worker demand. Research has found that 60% of Americans believe that all companies should offer workers immediate access to their earned wages, and nearly 80% of Americans target job opportunities for companies that offer instant payments. Companies that don’t comply will get left behind. 

Instant pay is already ubiquitous for consumers

Today, consumer payments for goods and services are quick and easy. Using tools like PayPal, Venmo and other digital payment vehicles, consumers are easily able to carry out retail and peer-to-peer payments from their phones.. Last year, research from Forrester found that digital transactions surpassed traditional transactions, with four in five Americans using mobile pay apps regularly and 50% of Americans saying that they use them more than once a week.

When you consider the standardization and expectations around instant pay for goods and services, it isn’t surprising to hear that consumers have developed similar expectations with their earned wages. Direct deposit has all but killed paper paychecks, but the delay between payments can cause difficulties for many consumers. Part of the allure of digital payment methods is the timing — money can be moved where you want and when you want. It is instant. Employees already expect the same experience for their paycheck — often on the same day or, for gig workers, right after a shift.

Instant pay increases financial control and financial wellness, because it provides access to emergency funds. With emergencies like unexpected car repairs, for example, employees  have the option of picking up a gig shift and getting that money instantly in their bank account. With many Americans living paycheck to paycheck, more and more people are going to expect instant pay. 

Employers need instant pay to be competitive

Workers are demanding instant, on-demand payments, and businesses should view this as an opportunity to gain employee loyalty. This is just one step that businesses can make to take care of employees — but there are benefits beyond employee satisfaction. Instant pay will also open up cross-border labor opportunities, allowing businesses to access distributed workforces around the globe.

Instant pay technology is already here

For businesses, moving to an on-demand payment system is not as scary as it sounds. The technology already exists to both provide instant payments and comply with financial and accounting regulations. Instant payment technology provides micropayments — often less than $100 per transaction — to employees, while allowing the payment to stay on the company’s ledger as it’s reallocated from one wallet to another. With ledger-to-ledger reconciliation, companies avoid per-transaction fees. The system reduces the cost of the transactions while still providing employees with access to funds. 

On-demand payments differ from payday loans because workers have access to their earned wages through a digital wallet or debit card: They can spend the money out as they like, whether to their personal bank account or elsewhere.

As on-demand pay technology continues to grow, regulators will keep a close watch and adapt regulations to safeguard workers’ financial well-being, as they do with all emerging technologies. New guidelines may focus on enhancing transparency and protecting consumers. Businesses in the space need to consider these implications as they evolve their products and services. For global businesses adapting to the changing landscape of remote and on-demand workforces, staying informed and agile is key. By balancing innovation, compliance, and consumer trust, companies can ensure that the benefits of instant pay are adopted without unintended consequences.

On-demand pay can also help HR departments manage payment systems. For employees, the payday is instant — they don’t have to wait until Friday or the 15th of the month — but for businesses, the money remains on the balance sheet. In addition, an employee can only access a portion of earned wages, and that portion can be predetermined by the employer in advance, which is usually based on a percentage of income. The model satisfies the growing demand for immediate wage access while ensuring that an employer has the available funds to pay on-demand wages to employees. Instant pay technology is transforming standard payroll systems and is a win-win for both employers and employees. It has the ability to modernize industries and accelerate business growth by meeting employee demand while improving a company’s competitive position.