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Ride-hailing giant Lyft is partnering with Mastercard to launch Lyft Direct Debit, a cobranded debit card and bank account with rewards and benefits for Lyft drivers. The card will be issued by Stride Bank, powered by Payfare, and initially available in eight US cities including Atlanta, Los Angeles, and Las Vegas.
This is part of Lyft’s broader Lyft Driver Services program, which it debuted in March. Lyft Driver Services included financial services like a no-fee bank account and debit card as well as discounts on rental cars and vehicle maintenance.
Here’s what it means: Lyft Direct Debit comes with a suite of benefits catered toward the needs of gig economy workers — an increasingly sizable portion of the US labor force.
The program comes with a debit card that offers 4% cash back on gas, groceries, purchases at select restaurants, as well as other purchases. Debit cards with rewards are rare, which could make this offering attractive — especially given its 4% cash back, which is a higher reward than most no-fee credit cards. And the fact that the card rewards everyday spending categories could make the offering even stronger. Cardholders will have access to a network of 20,000 no-fee ATMs and Mastercard ID Theft Protection.
Lyft drivers will be able to access their earnings instantly. Not having immediate access to funds is a pain point among the nearly 60 million US gig economy workers. And, in general, immediate access to funds is critical to the financial stability of US workers: 3 in 4 …read more
Source:: Business Insider