HERNDON, Va.–The National Automated Clearing House Association (Nacha) has launched a new ad campaign to educate gig workers about what it says are the benefits of direct deposit.
Nacha, which manages the administration, development, and governance of the ACH network, said the campaign follows a study it commissioned that found the sizable majority of the nation’s younger Millennials are paid by direct deposit, but which also “revealed a stark contrast between W2 employees and gig workers.”
“Overall, 97% of workers ages 22-34 have a bank or credit union account, with 83% receiving their pay by direct deposit,” Nacha said. “However, among W2 employees, 88% use direct deposit, while only 47% of gig workers are paid this way.”
Nacha said it further found that of the respondents that receive direct deposit payments, more than three-quarters cite key attributes of reliability, trustworthiness, ability to be paid on time, security and ease of use.
Opportunity to Educate
“Among younger W2 workers, direct deposit is widely understood, used and appreciated,” said Jane Larimer, Nacha president and CEO. “There is an opportunity to educate younger gig workers on the value of Direct Deposit as a fast, convenient, reliable and environmentally-friendly way to receive their pay.
“The study also found that ACH usage increases as workers progress in life when they are more likely to purchase a home or car, pay bills and save for retirement,” Larimer continued. “When factoring the entire millennial population, including those 35-40, ACH usage would be even greater than what was reported.”
Nacha said Millennial workers can also “appreciate” Direct Deposit for receiving other payments, including tax refunds and government benefits, app-based payments, travel and expense reimbursements, and bonuses and commissions. They can also benefit by using ACH for expenses (known as Direct Payments), including loans, rent and mortgage, utilities, credit cards and insurance premiums.
Additional Findings
According to Nacha, other key findings from the research on American workers ages 22-34 include:
- 71% keep their money primarily in a bank account – almost all have deposit accounts, and the vast majority have savings accounts
- 7-in-10 use Direct Payment for bill payments at least once a month
- 56% of gig workers still primarily store their money in bank accounts, but the remainder store it in other non-bank payment app alternatives
- The top use cases for Direct Deposit are salary/wages (82%) and taxes/other refunds (53%).
- Among those with Direct Deposit, the top three use cases for paying bills with Direct Payment are utilities (53%), rent/mortgage (48%) and credit cards (44%).
The campaign page can be found at DirectDeposit.org/GigWorkers.
The Very Best in CU Reporting. Every Morning. At a Price Every CFO Will Love
Don’t forget to check your Spam/Junk email folder if you haven’t been receiving your free, popular and daily CUToday.info news headlines.
And if you haven’t yet signed up for the new email solution on which CUToday.info has partnered with ResponseGenius, you can do so here. Signing up requires less than one minute of your time.
CUToday.info has received very positive response from readers following the move to an improved provider of the daily headlines, but many also noted they did need to go to their Spam/Junk folder and mark it as safe.
The new email solution has not only improved every reader’s delivery experience, but it also features a fresh, new format that is easy to read, especially on mobile devices.
Please note and/or make your IT department or email administrator aware the emails will be coming from the domains CUTodayinfo.com and CUTodayinfoReply.com.