How Does a Seller Get Paid Using an On-Demand App?

Paying your on demand sellers in a timely, efficient, transparent, secure way is critical to gaining trust

Sellers all over the world – using a wide range of skills – are earning incomes through various on-demand apps. But if you are thinking of becoming one of these sellers, you may be curious as to how exactly you would get paid.

Great question! The way that sellers get paid is going to differ somewhat from app to app. Sometimes the seller gets paid first and then they are required to pay a fee or commission to the on-demand app. In the majority of cases however, buyers will pay the on-demand app first which in turn will then pay the seller their share.

Want to know how on-demand apps decide what fees to charge? Click here.

Payment Gateways for On-Demand Apps

Since on-demand apps are cashless, they will have to use some form of online payment gateway. There are many options for buyers but most will purchase using a credit card. In some cases, buyers may also be able to pay through a bank transfer or through their PayPal account.

Learn more about payment gateways for on-demand apps here.

How and When Does a Seller Receive Payment?

Typically, a seller using an on-demand app will only receive payment after the service has been delivered. Apps such as Airbnb that require the buyer to pay as soon as the service is ordered – even if it is weeks or months in advance – may have an escrow system in place in which the app owner will hold the payment in escrow until after the service is delivered. This protects the buyer and allows them to get some or all of their money returned in the event that either party cancels.

Even if the service is delivered fairly immediately however, sellers should not expect immediate payment. A typical turnaround time between delivering the service and getting paid through the on-demand app is about 48 hours. The timeframe for payment can also vary depending on the method that the buyer uses to pay. There can even be a difference based on what type of credit card the buyer is using!

In receiving payment too, the method is almost always electronic. Sellers may receive their payment through electronic transfers to their bank accounts or to their PayPal accounts. Alternatively, sellers may have an account set up within the on-demand app itself that allows them to accumulate payments and then transfer those payments to their bank accounts at their own discretion. In some cases, on-demand apps may even send out cheques in the mail but this is rare and not the preferred method of most on-demand app companies.

As you can see, even though there will naturally be some differences in how sellers get paid between different on-demand apps, there are far more similarities. This is because the best on-demand app companies have worked out safe, effective and reliable methods to ensure that their sellers get paid as promptly as possible.

It only makes sense that other up and coming on-demand apps would follow these models.

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