Modo CEO, Bruce Parker, sat down with PYMNTS to talk about the needs of the rapidly growing gig economy, the complexity around sending money to Alternate Payment Methods (APMs), and how interoperability is the answer. An excerpt from the interview is below, and you can access the full article here.
Parker says the marketplace is recognizing that it needs to start thinking more deeply about payouts. Different players are coming to the same conclusion: that they must connect different payout solutions to satisfy gig workers’ myriad and widely varying demands, and that that task is far easier said than done. Integrations, in short, are hard.
According to Parker, there are two parts to this problem.
First, there’s the payout itself — pushing funds to a card or a bank account or mobile money account. There are plenty of good solutions out there, and not all workers will prefer the same one, so most clients will find themselves needing to support several options to keep the workforce happy, he said.
That creates a problem, because now the organization must maintain connections to all those different partners and tools — things like processors and PayPal that get the transactions flowing.
Then, there’s the accounting side of things. When an organization wants to push money out to somebody, it’s because that person did something for the company — and the work completed must be tracked from an accounting perspective. Ledgers must be kept balanced. Reconciliation must be noted.
Compliance and reporting requirements create a crossover between payroll, banking and accounting systems. And, said Parker, there’s no one connection that does it all.
It’s complicated, but to Parker, the implications are simple: Interoperability matters, and solving it powers the three Cs that keep users coming back: Compliance, convenience and choice.