What Product Leaders Need to Know About Gig Work & Embedded Finance In Today’s Job Market

TL;DR

• More workers are flocking to the gig economy, but they’re bringing new demands and expectations with them
• Amid ongoing economic volatility and financial precarity, these workers are seeking out gig platforms that can offer innovative ways to solve these problems
• For today’s product leader or CTO, embedded finance can be a strategic lever in not only building new revenue streams, but boosting platform loyalty and reducing churn.

What Product Leaders Need To Know About Gig Work & Embedded Finance in Today’s Job Market

The job market is evolving at a rapid pace for both W-2 and 1099 workers alike. AI disruption and ongoing corporate layoffs are destabilizing traditional employment paths; and amid this uncertainty, more and more people are flocking to the gig economy. 

You’d think this would spell good news for gig platforms. With more talent to choose from, what could be the issue? However, broader economic trends indicate that gig workers are facing increased financial pressure from income volatility, lack of benefits, and slow or rigid payment systems. And if you want to earn their loyalty, you have to offer innovative solutions to these challenges.

As a product leader, the worker experience is even more important in today’s economy.

Gig worker expectations have been shaped by fintech experiences like instant transfers, real-time earnings visibility, and on-demand access to their money. If your platform can’t meet the needs of today’s gig workers, they’ll quickly go elsewhere. 

So what can you do? First, it’s important to delve a little more deeply into the macroeconomic trends at play in today’s labor market and how they’re affecting workers on your platform. 

Then, let’s explore how embedded finance is emerging as a powerful lever for today’s product leaders. Not just for user acquisition or monetization, but for solving the financial challenges of gig workers—in turn, building loyalty and platform stickiness. 

Macroeconomic Trends Reshaping Worker Needs

While inflation has technically cooled from its 2022 peak, the cost of living remains high and consumers are still feeling the pinch. Industries like healthcare, logistics, and the trades are experiencing persistent labor shortages, yet at the same time, there’s a surplus of underemployed knowledge workers navigating the aftermath of widespread tech layoffs.

Despite these differences, most workers are feeling financially precarious, with the latest data suggesting 57% of workers live paycheck to paycheck. This has increased the demand for gig platforms and contract work, with workers seeking flexible or supplemental income.

Whether workers on your platform are full-time gig workers or are working multiple jobs to keep up, they need help addressing these challenges. And if your platform won’t offer solutions, gig workers will find another platform that does.

The Benefits of Adding Embedded Finance to Your Roadmap

Embedded finance refers to the integration of financial services directly within non-financial platforms—think digital wallets and fast, flexible payouts—without requiring users to leave the platform ecosystem. This has the potential to address the financial insecurity of your workers while also delivering meaningful benefits to your business.

Here are just a few things embedded finance can do for your platform.

1. Improve Platform Stickiness

It’s clear that gig platforms are evolving from simple marketplaces into full-fledged ecosystems. By embedding financial services—such as digital wallets, savings features, or access to credit—these platforms can become more integrated into workers’ daily lives. 

Take a logistics platform, for example: if drivers are paid immediately after each delivery into an in-app wallet, they’re more likely to keep working on that platform. Why? They don't have to wait for invoices to be paid or bank transfers to go through; they also don’t need to use multiple apps to access their earnings. They can access it all through one convenient hub–your platform.  

This convenience builds habit and loyalty, making workers less likely to switch to a competitor. Embedded finance, in this way, transforms your platform into a central financial hub, not just a place to find work. And when you have more workers picking up more shifts on your platform due to a faster, more flexible pay experience, you’re better able to meet the demand of your customers. This allows you to fuel platform growth and scale for the future. 

2. Enhance The Worker Experience (And Reduce Churn) 

Because embedded financial tools allow platforms to offer fast, flexible payout methods, they’re able to address the financial stress workers feel in today’s job market. The flexibility of real-time payouts and fee-free financial services also offers a sense of control, empowering gig workers  with more ways to be in charge of their money. 

Additionally, gig workers rely on cash flow to continue using a platform and build more business. Faster access to their earnings helps them more efficiently reinvest in their small business. Take reseller platforms, for example. Someone who gets faster access to payments is able to continuously buy more inventory, in order to sell more on your platform. It’s a win-win for everyone involved.

All of this can contribute to enhanced worker satisfaction and ultimately, reduced churn. Let’s face it: the gig economy is saturated. When one platform embeds real-time payouts and other financial tools, and another delays payment for days, the choice becomes clear. Workers start to see your platform not only as a place to pick up shifts, but as a partner in their financial wellbeing.

3. Unlock New Revenue Streams

Embedded finance unlocks a world of opportunity to monetize different elements of your product while providing additional value to your end users. And product leaders are uniquely positioned to pull this strategic lever because of their curation of the user journey, and deep understanding of the touchpoints where integrated financial services might create value. 

Depending on who you partner with, you may be able to unlock new revenue streams with integrated financial services. When embedding a card program into your product, for example, your workers could be issued debit cards; you might then have the potential for revenue share based off the interchange fees from purchases made on those cards. 

Every provider is different, and every partnership offers unique possibilities here. But finding ways to unlock new revenue streams through financial services that can benefit your workforce has the potential to be a win-win for everyone involved. 

Embedded finance also offers the chance to save money on the cost of worker payouts if done with the proper partner. By eliminating costly ACH fees, transaction fees, and other unnecessary payment process fees, you’re able to free up money for business growth. 

Why Adding Payments Doesn’t Need to Derail Your Product Roadmap

As a product leader, your roadmap is likely full, but embedded finance isn’t just a nice-to-have—it’s a crucial component of your future scalability. The good news is, you don’t have to build everything yourself to provide financial services. 

Thanks to modern APIs and embedded solutions, platforms can integrate these services quickly, securely, and in a compliant manner.

With the right partnership, you can roll out capabilities like:

• Real-time payments that can be sent after every shift, ride, or unit of work
  
  
• Customized digital wallets and debit cards that keep your brand front and center
  
  
• Cashback rewards that put more money back in gig workers’ wallets
  
  

Each of these tools enhances the platform experience while providing new revenue levers and helping workers stay active and engaged.

The Future of Gig Payments Is Embedded

As macroeconomic volatility continues to challenge traditional employment models, gig platforms need to evolve from marketplaces into financial allies. For product leaders, the challenge is no longer whether to offer financial tools, but how to do so in a way that aligns with your platform’s strategy, your users’ needs, and the broader market dynamics.

Embedded finance can help you unlock revenue streams while solving real, daily problems for the people who power your platform. And doing so isn’t just a nice-to-have—it’s crucial. 

Because in this economy, if you’re not helping your users keep more of what they earn, someone else will.

The future of gig work is fueled by embedded finance. Will your platform be ready?