🌐 A brief overview of domestic & global payout methods

Issue #3, October 24, 2023

Author

Sahil from Dots
October 24, 2023

Welcome back to the Payouts Club! 💸

/

Payouts Club is a bi-weekly newsletter about everything payout-related featuring guides, written content, interviews with founders, case studies, and collective thoughts from fintech leaders and creators.

Each week we’ll cover the most relevant topics from for anyone who works with payouts on the daily which includes:

  • Companies paying out contractors like freelancers and gig workers

  • Contracted freelancers, creatives, gig workers

Here’s this week’s edition:

🌐 A brief overview of domestic & global payout methods

Since PayPal’s founding nearly 20 years ago, mobile-first payments like Venmo and CashApp have been on a steady rise. Recently there’s been a drastic shift toward digital payments and wallets, making it easier than ever for businesses to go global.

Pew Research recently reported that 76% of Americans say they have used at least one of the four payment apps (PayPal, Venmo, Zelle, CashApp).

More companies are also trying to integrate instant mobile payments like Uber, who just announced that they expanded their relationship with PayPal to cover a greater range of their business processes.

In today’s newsletter, we’ll explore:

  • ✅ The rise of mobile payment methods like Venmo and CashApp

  • 🗒️ What’s the difference? RTP vs. ACH

  • 💸 How demographics affect preferred payout method

  • 📊 Top global payout methods

📚 Gentle Guides:

While ACH and RTP appear similar, they work differently behind the scenes and provide unique benefits for you and your contractors.

Both methods allow you to send money directly from a bank account, but the method, cost, speed, and availability differ. ACH transactions are usually faster and cheaper, but wire transfers are beneficial in specific situations.

There are many different methods for sending and receiving global payments, each with their own advantages and disadvantages.

  • Wire Transfers

  • Global ACH

  • Venmo

  • PayPal

  • CashApp

  • Zelle

  • Checks

  • Prepaid Cards

💡 Current Top Global Payout Methods

According to our 40,000 users across 150 companies, Venmo is the top used payout rail year-to-date.

  1. Venmo

  2. ACH

  3. PayPal

  4. Bank Transfer

  5. Amazon Gift Cards

🔎 Fresh Finds: Domestic & Global Payouts Edition

Our weekly pick for the best posts, articles, and other content from the community about working with international contractors.

Dan shares on medium the history of payment rails in the US starting in 1918 with FedWire, to 2023. He does a deep dive into the ubiquity of ACH payments, which currently make up 80% of all digital payments across the US.

By: Dan Akivis

P2P is not only convenient, but the new norm, especially for younger demographics. Here are 5 things to note for safety and fraud protection when using services like Venmo.

By: Ellen Sheng

Check out Venmo, Cash App, and Zelle’s growth projections until 2025.

By: Rimma Kats


💬 Talks & Tweets:

It’s 2023. ACH isn’t and shouldn’t be the only option for getting paid.

Do you agree?

Ah, the great Cash App vs. Venmo battle. Which do you prefer?

TL;DR: Digital payments and peer-to-peer payouts like Venmo are booming. There are countless options for global and domestic payouts each with pros and cons depending on use case. We’ve provided many guides such as Benefits of ACH vs. Wire Transfer to make it easy.

That’s all folks.

Looking to stay up-to-date with everything payouts and connect with other payouts people just like yourself? Stay subscribed to Payouts Club for bi-weekly newsletters in your inbox.

Update your email preferences or unsubscribe