In June 2026, member states from more than 180 countries came together to participateInternational Labor Conferenceto determine international standards for digital platform workers. However, even with those standards in place, payments remain a major problem.
Imagine a freelance developer in Lagos, successfully completing a project for a client in London on Upwork. While the client's payment is secured immediately, the developer faces a mandatory security deposit of five days on his money, followed by conversion to Naira at negative rates, and fees of up to $20 per withdrawal, all in all.erosiona large part of their income.
The Booming Gig Economy in Emerging Markets
dLocal
The gig economy has taken off like a rocket around the world, it does 46% of the global workforce by 2025. Global speculation means that it is destined increase to $2.52 trillion in 2035 from $674 billion in 2026. And it is growing strongly in the Global South. According to the latest Compound Annual Growth Rate (CAGR) numbersemerging markets have growth rates of around 21% in India, 17% in Egypt, and 16% in Argentina and Brazil.
Platforms like Uber Inc. for drivers and Upwork for freelancers offer great opportunities for a second job or basic income. However, while these companies offer seamless purchasing options for their services, they generally haven't changed their pay structures for employees in emerging markets.
Besides the lack of stability and control that can come with hustle, paying workers easily and on time is still a challenge for many gig economy platforms.
Funds get stuck between payer and receiver as they move in local currencies across different banks and mobile money systems, with compliance and speed. For all the complexity of modern payment infrastructure, the last mile of the payment stack remains one of the most neglected issues in the industry.
Different Payment Plan
Paying is harder than it looks. There are a number of local currencies, many with variable exchange rates and limited convertibility. In order to pay in a timely, consistent manner, platforms must have a local currency ready to go, which can be difficult when used globally. Compliance issues, such as know-your-customer (KYC) and AML requirements, vary by region, while employee classification and withholding obligations differ.
In addition, many workers rely on mobile money payments such as M-Pesa in Africa, digital wallets, and cash withdrawal networks instead of bank accounts, which have little penetration in other regions.
There are no overhead payment rails, which means that the platform that works in Kenya, Nigeria, Brazil, and Colombia works with M-Pesa, bank transfers, PIX, and PSE simultaneously. Each comes with different payment periods, default rates, and reconciliation requirements. These problems cause delays, incorrect exchange rates and high cash flow costs all incurred by employees.
Apart from minor inconveniences, these problems can mean not eating or paying rent for some people living day to day. As a result, employees switch to whichever platform pays the fastest, while platforms face problems and risk their local reputation. Lateral inefficiencies, such as failed transaction payments, can add up significantly to platforms like Rappi and Glovo, which process millions of transactions per week.
Control pressure toostructure. The ILC conference this month will determine standards for digital workers, including job classification, wage transparency, and social protection.
Smooth Payments With One API
Platforms are exploring multiple solutions to employee compensation issues in emerging markets.
Aggregator models with multiple partners are one model that helps, but at the same time increases operational overheads, with ongoing liquidity problems. Pre-funded local funds are capital intensive and have high administrative costs, making them a barrier to entry for small to medium-sized businesses. Access to wages ensures that workers are paid on time; however, it does not settle payments. Partnerships with local banks in the marketplace provide faster payments, with platforms that manage compliance and currency conversion.
Single APIs may increase hardware costs; however, they handle the complexities of local routing, fees, payment methods, and compatibility with multiple markets, making it easier for platforms to pay workers with less money.
There is no denying that side jobs and flexible working are attractive opportunities for many, especially in emerging markets. However, the delayed payment of workers living paycheck to paycheck is an active factor that hinders a stable standard of living and destroys confidence. Those who want to expand their multi-billion dollar businesses must ensure that the experience is seamless not only for the customer but for all parties involved.
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Carlos Menendez, CEO of dLocal, is a seasoned general manager with extensive global experience in building and growing businesses. Prior to dLocal, he spent 14 years at Mastercard, most recently president of the Global Commercialization Office, and 14 years at Citi, serving in senior roles as COO of Western Europe Retail Banking, regional director of EMEA Bankcards, and CFO of Citibank USA. He holds a BA in Economics from Harvard University, an MBA in Finance from The Wharton School, and an MA in International Studies from the Lauder Institute at the University of Pennsylvania.
The post Menendez: The Gig Economy Has Trouble Paying appeared first on Global Finance magazine.
