There’s a lot of talk about paycards for employees—and by that we mean W-2 workers. But what about card solutions for gig workers, aka 1099 contractors? And just what should you look for as you start exploring card options?

If you’re looking for a way to quickly and easily pay your independent contractors—whether you have one on your payroll, or one thousand—we’re breaking down everything you need to know about finding the right contractor paycard or debit card for your workforce. Here’s a quick primer on why paycards and debit cards for contractors are on the rise—and what to look for in a solution.

Why Paycards and Debit Cards for Contractors Are on the Rise

When it comes to the best payroll solutions for 1099 contractors, digital-first methods that come with a paycard or debit card solution can be beneficial for several reasons.

Gig workers expect to be paid quickly

Traditional payment methods such as paper checks can be slow, taking several days or even weeks to process and clear. A paycard or debit card solution, on the other hand, allows for fast payments—as soon as right after each shift or unit of work is complete.

Contractors can access their earnings immediately after they’ve been deposited onto the card, improving their cash flow and reducing the frustration of waiting for checks to clear. For independent contractors, this may also help reduce financial friction with business expenses, as better cash flow can make it easier for contractors to pay for the things that fuel their business; in the case of rideshare drivers, this may literally be fuel! 

Gone are the days of 30 or 60 day invoices being acceptable; today’s gig workforce wants faster pay. In fact, 80% of gig workers say they’d choose one platform over another if it could pay them instantly and without fees. 

Companies want to reduce administrative burden

Managing payroll for contractors can be time-consuming and costly, especially for small businesses and startups. Issuing paper checks can be expensive, and it also leaves room for error or check fraud—all of which adds up to more hours your finance team needs to spend troubleshooting or fielding questions.  

Digital payment methods like contractor paycards and debit cards eliminate much of the paperwork associated with issuing checks or managing direct deposits, making payroll simpler and more efficient for your team. And if you can find a platform that allows you to pay all workers (whether W-2 or 1099) from the same centralized hub, even better. (More on that in a bit!)

Potential for greater financial inclusion

Some contractors, especially those in lower-income brackets or in remote areas, may not have easy access to traditional banking services. In these instances, certain paycard and debit card solutions that come with a full digital banking experience may offer a chance for greater financial inclusion. 

These types of solutions—where workers can use a debit card and fee-free digital wallet, backed by a bank account—provide access to banking services for a wider range of workers. Some even come with perks like cashback rewards and financial wellness tools to help promote financial literacy and wellbeing. 

What to Look For In a Contractor Paycard or Debit Card Solution

When you’re ready to start looking for contractor paycards and debit cards, it’s important to know that not all of them are created equally. Just because a card program technically works for 1099 contractors doesn’t mean it was designed to address their needs.  Here are a few things to look for to ensure the paycard or debit card solution you choose is equally beneficial for your contractors and your business.

Mobile app integration + digital banking

A solid contractor paycard or debit card should come with a mobile digital banking app that makes it easy for contractors to track spending, transfer funds, and monitor account balances. This serves as an essential tool to manage payments and keep track of earnings on the go. 

Providing an easy mobile interface not only benefits your contractors, but also reduces admin hassle on your side, as some even come with simple, self-onboarding. 

Fee-free options

When offering a payments solution to your contractors, make sure it’s a financially smart decision for both your company or platform and your workforce. Some paycards charge fees for various services, such as in-network ATM withdrawals, balance inquiries, or card maintenance. Look for a paycard with low or no fees—and especially pay attention to hidden fees, like inactivity fees or card replacement fees. Workers shouldn’t be charged for looking up their balance or withdrawing cash from their own accounts.
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Try to find a solution that provides free in-network ATM access, and is without overdraft fees, inactivity fees, card replacement fees, or minimum balance requirements. 

Cashback rewards + financial wellness tools

‍Some paycards offer rewards programs or cashback on purchases made using the card. These benefits may be valuable for contractors who frequently make business-related purchases or need to pay for work-related expenses.

It’s also worthwhile to explore paycard and debit card solutions for contractors that come with financial wellness resources. With recent data suggesting that at least 65% of Americans live paycheck to paycheck, any additional financial wellness features such as a savings tool, personalized spending insights, or financial literacy resources, can be helpful resources to provide to your 1099 workforce.

One streamlined platform for all worker types

Many businesses hire both W-2 and 1099 workers, and in these instances, it’s helpful to find a card and payments solution that can easily manage payouts to both worker types. Otherwise, your payroll team is left to continuously perform separate, manual payouts to your contractors, which can end up taking valuable time out of each week.

With a streamlined payments platform and card solution, you can easily pay out both W-2 and 1099 workers all from the same centralized hub. 

Finding the Comprehensive Payments Solution That’s Right For Your 1099 Workforce

For today’s 1099 contractors, a digital payments experience is no longer just a convenience—it’s a necessity. Going beyond the notion of a paycard to a full-fledged digital banking experience with a mobile app and debit card has the potential to benefit the lives of your contractors while simplifying your business processes at the same time.

At Branch, we go beyond a traditional paycard to offer a digital banking and card solution for contractors that’s easy for them to use, and easy for you to manage. With our digital payments platform, you can offer your 1099 contractors a fee-free debit card and checking account that allows you to send fast, flexible payouts—no manual processes, separate payroll systems, or old-fashioned check issuing required. 

Learn how Branch makes paying contractors fast and simple.

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