SnapCar and Revolut Introduce Instant Payment Service
The ride-sharing app SnapCar partners with the British neo-bank Revolut on featuring a day-to-day instant payment service for their drivers. This French start-up relies on an instant payment solution to stress their focus on social responsibility and stand out before other ride-hailing/ride-sharing platforms.
SnapCar is a ride-hailing service, just like their direct competitor Uber. Unlike this US and global leader, the French start-up commits to streamlining cash management processes for their drivers. This approach does not impact customer service at all, but helps SnapCar secure their drivers’ loyalty.
By way of ensuring a certain level of social responsibility, they just partnered with Revolut. From now on, their drivers can cash in 80% of their payments the following day. After each working day, the driver is sent a notification specifying his balance. A link directs him to his management portal enabling him to validate the transfer. This payment credited to his account in a matter of seconds.
To use this option, SnapCar’s drivers will have to open a business account with Revolut. They also have access to a payment card for their daily expenses. This offer is proposed for free.
Comments – Value addition for Instant Payments
Most self-employed drivers relying on ride-hailing platforms complain about how low their income actually is. Their daily expenses (fuel, insurance, car maintenance, etc.) have to be paid for before any rides can even be charged; these can cut down their revenue by as much as 35%. Considering these work conditions, ride-sharing platforms fear that these drivers might end up quitting altogether in the months to come. SnapCar proposes an attractive solution to this issue.
SnapCar opted for instant credit transfers and implemented a way for drivers to request their payment day by day, so they can earn their income the following day. As, SnapCar could not rely on a banking institution with connection to the Instant Payment infrastructure, they selected Revolut. In fact, this FinTech has made room for these issues and services. This competitive edge would, however, begin to wane as French banks are also making Instant Payments-related announcements (BPCE and Arkéa, for instance). This example highlights another relevant use case for Instant Payment services, stressing obvious value addition. Revolut did identify these needs and niche markets: this partly accounts for their exceptional growth levels.