Paypal and Fiserv announced on Wednesday the companies are partnering up with the goal of allowing gig workers a new way to receive paychecks. The partnership will allow paychecks to go straight into a PayPal or Venmo wallet.

The new deal was formed to offer users a faster way to access their money without a middleman bank.

“It’s a combination of convenience and real-time payment experience combined together for the consumer,” Nandan Sheth, global head of payments at Fiserv, told CNBC.

About $5 trillion has been used for deposits in non-interest-bearing PayPal and Venmo accounts in the first quarter of 2021, according to the FDIC.

“With more than 400 million active accounts on the PayPal and Venmo platforms, we are able to provide companies with a fast, easy, and cost-effective way to send money,” Dan Leberman, senior vice president of partnerships for PayPal, said in a press release.

Sheth told CNBC the cases that can support this offering will include "a 1099 (independent contractor) payment for a gig economy worker, a claim payment for an insurance company, a tax refund from the federal government, and more."

Fiserv also has partnerships with Lyft, State Farm, and FanDuel, which could allow for an even faster way to receive payments for Lyft drivers, insurance payouts, and sports betting winnings. Fiserv says it is in discussions with the companies to enable payments directly to PayPal and Venmo. Users should be able to use the offer for gaming and other B2C transactions as well.

"It’s really interesting with ride-share, drivers can literally get paid after the ride,” Sheth said. “The benefit the company gets if they use the Venmo rails is the logo of that company is embedded in the payment. It appears on the user's social graph with a message. It gives brands an opportunity to get in front of the Venmo audience. It’s a two-part value proposition.”

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