With millennials accounting for 44.3% of crypto owners and their representation in the workforce predicted to soon reach 75%, organizations must adopt dynamic compensation packages to appeal to their demands. And what millennials want is the option to receive their paychecks in crypto. Not only millennials, but 50% of Gen Z as well.
Globally, the urgency for cross-border digital payment solutions is on the rise. Crypto represents a new frontier for frictionless hiring; in the era of remote work, payments in crypto unlock access to contractors worldwide who would otherwise be inaccessible due to limitations with respect to payment and compliance.
To usher in the payroll systems of the future, crypto payment gateways are emerging as highly flexible and agile solutions for global compensation.
What is a Crypto Payment Gateway
A crypto payment gateway is a system or platform that supports payments in both crypto and fiat currencies. In the case of payroll, a crypto payment gateway allows companies to pay their workforce in fiat, crypto or a combination of the two, depending on their preferences and those of their workforce.
Through offering expanded remuneration options, a solution that facilitates payments in both fiat and crypto is inclusive to contractors and employees who prefer to receive their wages in digital assets. This preference can be driven by various factors which can include faster cross-border transactions and investment opportunities.
Similarly, the ability to pay contractors and employees in crypto opens doors for companies to more freely hire internationally.
The Advantages of Integrated Fiat and Crypto Payroll
Companies stand to gain significant benefits by incorporating opportunities for crypto payments into employee compensation packages and options for contractor salaries.
Crypto payment gateways position organizations to be able to attract top talent from both local and global markets. The flexibility that comes with giving workers the freedom to choose their preferred method of compensation plays a critical role in competitive hiring.
This takes on greater importance as remote, global hires become the new normal. With emerging economies worldwide representing a significant portion of the remote workforce, the integration of payment systems that allow for their inclusion is crucial.
Take Nigeria for example, the sixth largest country in the world with 40% of its population unbanked. While its fiat currency is notoriously unstable, it ranked 11th place on Chainalysis’ Global Crypto Adoption Index in 2022. Nigeria boasts a substantial remote workforce, for whom the ability to receive a paycheck in crypto would be advantageous when compared to remuneration in the steadily depreciating naira.
Alongside the high percent of Nigerian remote workers, South America represents another predominantly unbanked region witnessing a rise in freelancers. Appealing to these skilled labor pools will undoubtedly gain even greater importance as they comprise a growing segment of the global workforce.
When paired with statistics regarding millennial’s crypto paycheck preferences, it's impossible to negate the utility of crypto’s integration into employee and contractor compensation.
Crypto and Fiat Payments with Rise
For companies ready to embrace the future of hiring, Rise offers an all-in-one solution for fiat and crypto payroll and compliance. Onboard contractors and employees across international borders and issue close-to-instant payments with full compliance guaranteed.
Rise facilitates the streamlining and automating of HR processes from identity verification to mass global payouts in fiat and crypto. Through Rise’s KYC checks, worker identity and compliance can be quickly and efficiently verified in more than 150 countries. Onboarding is further simplified with Personal Service Agreements made accessible in a matter of clicks.
A distinguishing feature of the Rise infrastructure is the RiseID- a self-sovereign on-chain identity that is granted to all users. The RiseID is a smart contract owned by the user’s wallet of choice. It leverages the ERC-725 token standard and enables contractors and organizations to identify themselves and authenticate transactions.
In addition to streamlining the hiring process, Rise provides a scalable and flexible solution for paying a global workforce in crypto. Built for web3-native organizations and traditional companies alike, Rise supports a wide range of treasuries that include crypto held in digital wallets and fiat held in traditional bank accounts.
Rise’s dual payment infrastructure enables seamless routing between fiat and crypto. Organizations can fund payroll in the currency of their treasury while contractors can withdraw payouts in their preferred currency, from a selection of 100 cryptos and 90 fiat currencies.
Schedule a demo today to learn more about how Rise’s comprehensive fiat and crypto payroll solution can propel your organization into the forefront of the future of work.