Liam’s midnight hustle: A delicate dance of critical cash flow

Liam wraps up a midnight rideshare shift in Austin and taps his app's "instant cash-out" feature. He needs that money to fuel up before dawn's first ride. If his credit union can't process instant payments, those funds won't arrive until the next business day, and Liam risks losing his early-morning passengers because he can't fill his tank.

Later that day, he works a dinner shift at a local restaurant where customers tip via a digital wallet. The restaurant's app promises immediate payouts, but without real-time rails at his credit union, his tips sit in limbo until the next batch transfer. He waits while essential earnings remain inaccessible.

On weekends, Liam delivers for a courier service that follows a "work today, get paid today" model. If his credit union can't post same-day credits, that promise collapses. Liam ends up relying on high-fee cash advances just to bridge the gap. By the end of the week, he has paid extra just to access money he's already earned.

Data trends and member realities

Understanding Liam means looking at the broader financial landscape where a growing swath of members share his need for agility.

• 62% of U.S. consumers live paycheck to paycheck, including nearly 50% of households earning over $100,000 per year. Financial fragility spans all income levels.
• 55% of Gen Z and millennial workers maintain a side hustle, and nearly half plan to always have one. They juggle multiple income streams and expect instant access to each.
• There are over 25 million microbusinesses in the U.S., defined as firms with four or fewer employees. Many of these solopreneurs run enterprises out of homes, coffee shops, and co-working spaces.

These trends show that members like Liam and microbusiness owners need more than a standard checking account. They need flexible, frictionless payment solutions that match the speed of their income sources.

Serving Liam and other microbusiness members

To meet the needs of dual-account members who manage personal finances and small enterprises, your credit union may need to offer a suite of products and features:

• Instant Deposit Options: Enable members to cash out earnings from gig platforms or tip apps at any time of day.
• Same-Day ACH, Debit Push, and Real-Time Payments: Integrate real-time rails so work-today get-paid-today promises hold true.
• Business Checking Accounts: Provide low-fee, second-account structures designed for microbusiness cash flow management.
• Embedded Invoicing and Payments Tools: Offer simple invoicing, payment tracking, and reconciliation features within the online and mobile platforms.
• Custom Alerts and Analytics: Allow members to tag deposits by source, set balance thresholds, and receive instant notifications.

Each feature addresses a specific pain point in the gig, tip, and microbusiness journeys. Delivering these solutions in a cohesive way requires a complete payments strategy.

Building a complete payments strategy

A comprehensive payments strategy transforms payments from a support function into a growth engine for your credit union. As such, it's important that it's comprehensive and supported from the top of the organization down. Consider the following as you start the journey:

• Assess Member Needs: Use data analytics, surveys, and member focus groups to map payment behaviors. Identify segments such as rideshare drivers, delivery couriers, restaurant staff, and home-based entrepreneurs.
• Modernize Infrastructure: Invest in modern APIs, cloud-native processing platforms, and partnerships with fintechs that specialize in real-time payments and fraud prevention.
• Design a Product Ecosystem: Bundle personal and business accounts with optional real-time capabilities. Build an integrated digital experience where members can toggle between personal and business views without logging in separately.
• Partner Strategically: Collaborate with payment processors, fintech platforms, and industry networks. Seek partners with proven track records in instant deposits, same-day ACH, and embedded payment solutions.
• Secure Executive and Board Buy-In: Develop a business case that quantifies member retention gains, fee revenue potential, and competitive differentiation. Position payments as a strategic priority that impacts marketing, operations, risk, and IT.

Imagine how different Liam's week would look if his credit union offered real-time payments. After his midnight shift, he instantly transfers earnings into his second account designed for fuel expenses. At the restaurant, he gets tips in his account within minutes.

Weekend courier payouts hit his balance the moment they clear on the network. There are no high-fee cash advances, no needless waiting, no missed rides … all supporting Liam's goal of no missed payments on his personal obligations.

By crafting a complete payments strategy, your credit union can help members like Liam and the millions of microbusiness entrepreneurs who rely on instant access to their income streams become financially healthy. It's not just about moving money faster. It's about reinforcing trust, deepening engagement, and ensuring credit unions remain the primary financial home for today's on-demand workforce.

Jack Henry™ helps community-based credit unions drive revenue and retain deposits with payments strategies and solutions that leverage member engagement. Learn how payments drive profitability at jackhenry.com.

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