For most companies, paying employees once a month has been the norm for decades. But when business models change, companies often fail to move with the times.
For example, let's imagine you run an on-demand car hire service, just like the French based company SnapCar, that has thousands of partner drivers, most of whom need to be paid in order to cover their expenses. How do you solve this? Can you provide support without affecting your business cashflow?
Interesting, can you explain? 🤔
This was the problem that the app-based, ride-hailing platform SnapCar had been facing from day one. As is the case with many gig economy business models, SnapCar used to collect ride fees from customers and pay drivers at the end of the week or fortnight, via traditional payment systems.
This raised a significant issue for drivers because in this scenario, expenses such as fuel and general upkeep would have to be covered by drivers themselves, before their first pay-day. This is common pain point for those earning on an adhoc, flexible basis, or with a tight cash-flow.
Add to this weekend delays, when banks are usually slow at processing payments and you have the recipe for disaster, which can seriously damage a young company like SnapCar.
Agreed, so how did you solve it? 🤷♂️
Seeing how these payment inefficiencies were affecting many SnapCar drivers, we proposed a solution based on our Open API - a feature included free of charge with all Revolut Business accounts.
Using our API, SnapCar was able to automate payments in a way that allows its drivers to instantly receive funds directly into their Revolut account, at the tap of a button, 365 days a year.
The solution allows any SnapCar driver with a Revolut Business account to instantly receive their pay from the previous work day. Given the level of automation, making these payments doesn't require any human intervention from the SnapCar team. Instead, drivers receive a message with the balance accumulated during the day, which gives them the option to receive the payment instantly, by tapping a button inside the app.
Ok, but what does this mean for SnapCar and its drivers? 🚘
The integration opens the door to a world of possibilities for drivers, because apart from being able to cover the cost of fuel and other expenses from their earnings and not their savings; drivers can also spend fee-free in over 130 currencies, directly from their Revolut accounts. By using Revolut, SnapCar drivers can manage all their business finances in one place, helping them to stay on top of their cashflow.
For SnapCar, adopting the Revolut Business solution and building on top of our Open API allows the company to drastically cut the cost of making payments to its drivers, by avoiding legacy banking systems and instead favouring technology built to serve the user, by solving real-world problems.