According to the Market Statsville Group (MSG), the global on-demand pay platform market size is expected to grow at a CAGR of 14.9% from 2023 to 2033.  

With the on-demand pay model, workers can receive their paychecks whenever possible. Employees can log in at any time to view their daily earnings or shift by shift through a web-based platform, a mobile app, or a combined solution. Then, at any moment, they can withdraw any amount of their accumulated wages into their bank account without the company's payroll department's involvement or processing. In practice, this approach to on-demand wage payment brings the entire pay culture closer to the accrual and utilization of paid leave. The accelerating scope of artificial intelligence and rising machine learning and robotics applications is projected to create many opportunities for the on-demand pay platform market. From an employer’s perspective, it also breaks the cycle of running payroll for an entire workforce on a fixed date each week or each month. Due to the rising adoption of this concept, the demand for on-demand pay platforms is rising. Many companies are investing in these platforms to provide convenience to their employees and reduce the payroll department's workload.

COVID-19 Impact on the Global On-Demand Pay Platform Market

The COVID-19 pandemic has significantly impacted the global economy, although it accelerated the demand for on-demand pay platforms. The coronavirus pandemic severely affected the financial liquidity and stability of the majority population. With rapid laid-offs and lack of income flow, people were forced to use their long-term investments to make ends meet and pay hospital/medical bills. Many slipped into debt due to this financial instability. Post covid, employees demand advance salary payments to cover their debts or stabilize their earnings. However, this disrupts the payroll system of the company. Hence, an on-demand payment platform serves as an ideal solution to this problem. Many companies began to demand this platform for the convenience of their employees. Therefore, it can be said that COVID-19 accelerated the demand for this market rather than affecting it.

Global On-Demand Pay Platform Market Dynamics

Drivers: Increased Government Initiatives for Employee Benefits

Governments across the globe are taking initiatives to increase employment and reduce the attrition rate. The on-demand pay platform is an incentive for the employee as it provides the convenience of withdrawing a certain amount of pay anytime. Governments are incentivizing companies to adopt many such methods to retain employees and eventually maintain the country's employment rate. This factor drives the growth of this market. One of the other growth-inducing factors is increasing part-time jobs. Today, many companies prefer temporary employees, and the adult population is also inclined towards working part-time. The on-demand pay platform makes their payout easy in order to finance their daily expenses. This is prevalent amongst the student community, who fund their own education and living expenses.

Restraints: Stringent Payroll Policies of the Existing Companies

Emerging companies/businesses can still adopt this innovative way of salary payment. However, the multinationals and companies existing over 5-10 years have a standard payroll policy that ensures uniformity. Such policies run not only in the company but also in the entire industry. Hence, it is impossible to make a drastic change like on-demand payment in their payroll policy. This is a restraining factor to the market growth of on-demand pay platforms.

Opportunities: Vastly Increased Application of Artificial Intelligence, Machine Learning, and Robotics

The on-demand pay platform market is subject to a plethora of opportunities due to rapid technological advances with the penetration of artificial intelligence, machine learning, and robotics. This will enhance the platform’s efficiency in recording leaves, half-days, and other incentives. The companies adopting this technology will be benefitted from the convenience of operation, which will eventually drive the market.

Scope of the Global On-Demand Pay Platform Market

The study categorizes the on-demand pay platform market based on subscription plans and organization size at the regional and global levels.

By Subscription Plan Outlook (Sales, USD Billion, 2019-2033)

• Basic Plan
• Premium Plan

By Organization Size Outlook (Sales, USD Billion, 2019-2033)

• Small and Medium Enterprises (SMEs)
• Large Enterprises

By Region Outlook (Sales, USD Billion, 2019-2033)

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Italy
  • France
  • UK
  • Spain
  • Poland
  • Russia
  • The Netherlands
  • Norway
  • Czech Republic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Indonesia
  • Malaysia
  • Thailand
  • Singapore
  • Australia & New Zealand
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Colombia
  • Rest of South America
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa
  • Northern Africa
  • Rest of MEA

Small and Medium Enterprises (SMEs) segment is projected to grow at the highest CAGR during the forecast period by Organization Size

Based on organization size, the market is bifurcated into small and medium enterprises (SMEs) and large enterprises. During the forecast period, the SMEs segment is projected to grow at the highest CAGR. SMEs in developing countries are encouraging temporary employment and part-time. The on-demand pay platform will serve as an ideal solution for managing leaves, half-days, and other incentives. Large enterprises have strict policies, so they are reluctant to make such huge changes. Hence this market is expected to flourish amongst small and medium-sized enterprises in the forecasted period.

North America is projected to account for the largest market share, by Region

Based on the regions, the global on-demand pay platform market has been segmented across North America, Asia-Pacific, Europe, South America, and the Middle East & Africa. North America will dominate the global on-demand pay platform market in 2021. The growing adoption of AI-based solutions and rapid innovations in this region will accelerate the demand for on-demand pay platforms shortly. Also, the number of payroll software providers is high in this region as compared to other regions.

Key Market Players in the Global On-Demand Pay Platform Market

The global on-demand pay platform market is emerging, with limited players adopting strategies such as product development, partnerships, agreements, and expansion to strengthen their market positions. Most market companies focus on expanding operations across regions, augmenting their capabilities, and building strong partner relations.

Major players in the global on-demand pay platform market are:

• Gusto Payroll Software
• Paychex Payroll
• Paylocity
• OnPay Payroll Software
• ADP Payroll Software
• Rippling
• Intuit Quickbooks
• Deluxe
• Square
• Zenefits
• Paycor

Recent Developments

• In June 2020, Gusto released several new features designed to address employers' new challenges. These features focus on rebuilding and growing small businesses at a time when the economic fallout of the pandemic and mass migration toward remote work has shaken up the business landscape.
• In July 2020 — Paylocity announced its new COVID-19 Return to Work offerings to help businesses and employees navigate the unprecedented complexity of re-opening and re-energizing the workforce.

Key Issues Addressed

• What is the market size by various segmentation of the on-demand pay platform by region and its respective countries?
• What are the customer buying behavior, key takeaways, and Porter's 5 forces of the on-demand pay platform market?
• What are the key opportunities and trends for manufacturers involved in the on-demand pay platform supply chain?
• What are the fundamental dynamics (drivers, restraints, opportunities, and challenges) of the market?
• What and how regulations, schemes, patents, and policies are impacting the growth of the market?
• What are the upcoming technological solutions influencing market trends? How will existing companies adapt to the new change in technology?
• The market player positioning, top winning strategies by years, company product developments, and launches will be?
• How has COVID-19 impacted the demand and sales of on-demand pay platform in the global market? Also, the expected BPS drop or rise count of the market and market predicted recovery period.
• Detailed analysis of the competitors and their latest launch, and what are the prominent startups introduced in the target market? Also, detailed company profiling of 25+ leading and prominent companies in the market.