PayQuicker VP of Global Sales, Crystal Holtzendorff, delivered a brief segment during the live broadcast in which she explored key trends that are driving change in commission payouts in the direct selling industry.
In her presentation, Crystal discussed the changing demographics of the global gig economy, how this is driving the need for increased payout frequency and flexible spend options, and how PayQuicker is the best solution to meet and exceed these trends. Click here or below to watch her segment.
There are 4 key market trends direct selling management teams need to know to support a case for innovation in their commission payout systems and processes.
The increased need for digital transactions has forced the direct selling experience online and accelerated our clients’ use of digital tools and dynamic online user experiences, such as affiliate portals, digital shopping carts, and replicated websites. The industry also saw greater adoption of point-of-sale systems that accept mobile payments, more linked loyalty programs, and natural extensions into in-app purchases and peer-to-peer transactions.
This positioned digital and mobile payouts for the rapid adoption rate PayQuicker saw through record new clients in the last year. The Worldpay FIS 2021 Global Payments Report predicts that digital/mobile wallet transactions will be over 52% of all payments globally by 2024. This trend will accelerate within the direct selling industry in the coming years as legacy organizations catch up by moving from checks to tech to compete, attract, and retain distributors and customers.
In 2021, our direct selling clients’ focus is squarely on recruiting millennial and gen Z distributors and customers into the brand to capture the longer customer lifetime value of a younger population. By 2025, 75% of the global workforce will be made up of millennials.
Smart direct selling companies recognize that millennials have a different mindset when it comes to work and payout expectations. Millennials grew up in the instant-everything gig economy and can be choosy when it comes to how and when they work.
To make and receive payments quickly is now a market requirement for digitally-savvy millennials. Payout frequency is also an accelerating trend that keeps distributors engaged and motivated to grow their business and, in turn, grow the direct selling organization’s business.
Over 63% of PayQuicker clients are now paying distributors weekly, daily, or on-demand, while only 37% pay monthly or twice a month!
The staggering number of high-profile data breaches from 2015 through 2020 continues to fuel the need for direct selling organizations to invest in the highest levels of data security available in 2021 and beyond. Companies of all sizes should take the risk seriously and we are seeing our direct selling clients respond to the threat. Increased data security requirements and the rise in criminal cyber-attacks drive direct selling companies to partner with third-party payout providers with proven expertise in security and compliance to avoid and manage the risk of costly breaches of sensitive personal data.
PayQuicker Global Payout Solution
- Trusted DSA Partner
- Provides capability for clients to instantly pay distributors with NO fees
- Pay weekly, daily, or even hourly!
- Distributors can spend earnings instantly with NO fees, eliminating need to preload funds to a card
- Distributor owned bank accounts
- Plastic and virtual debit cards with mobile wallet capabilities (Apple Pay, Samsung Pay, Google Pay)
- White label branding — from user interface, to the mobile app and debits cards
- Globally-compliant, secure platform with KYC, PCI Level 1, SOC & GDPR