Mastercard Lyft tie up to strengthen economic security of drivers

Mastercard, the financial services company announced an expanded partnership with a U.S. based transportation network company, Lyft, to bring tools to Lyft drivers for their growth in the ever-changing scenario of the gig economy.

A bank account and a new co-branded debit card, Lyft Direct Debit, have been issued by Stride Bank. Powered by Payfare, the move is expected to strengthen economic security for Lyft drivers. This offer hand-picked benefits for the drivers, including secure, no-fee bank accounts, immediate access to earnings and cashback on everyday purchases, cites source.

For the record, approximately one-third of the U.S. labor force earns at least part of their income through the gig economy.

Sherri Haymond, executive VP, Digital Partnerships, Mastercard was reportedly quoted saying that the growing gig economy creates a challenging yet enthusing opportunity to leverage tech infrastructure, data-backed insights and digital payment expertise to help even out the playing field for gig workers. The company is proud to partner with Lyft to empower drivers with tools required for strengthening their economic security, he added.

Reportedly, the program will be initially launched in eight U.S. cities- Las Vegas, San Diego, L.A. Atlanta, Houston, Tampa, Denver and Washington D.C.

As per industry experts, The Lyft Direct program provides tailored benefits to gig workers, which include a Built-in Savings Account that automatically set aside earnings to save for desired goals, an Extensive ATM Network that allows a no-fee network of 20,000 ATMs and a Mastercard ID with theft protection.

Mastercard’s commitment to help gig workers in solving their financial potential is a key pillar of its growth program in America. This program will leverage Mastercard technology and expertise to tackle the hardships of workers, who cope with multiple jobs, inconstant paychecks and inconsistent benefits in three main domains, including speed payments, digital solutions to manage finances and government services for greater efficiency and innovation and smart cities for a future, that is digitally inclusive.

Source credit: https://www.marketwatch.com/press-release/mastercard-and-lyft-partner-to-provide-drivers-immediate-access-to-their-earnings-2019-05-15