With 75% of creators engaged in affiliate marketing globally, and a significant number experiencing cash flow issues, Visa’s new card aims to provide the market with the tools needed to grow business.
TikTok has partnered with Visa to launch a new debit card designed for content creators in the UK – the first of its kind.
Currently, creators who earn income via TikTok Live tend to manage their finances through their personal bank accounts.
Creators are rewarded for their posts through virtual gifts, which can then be converted into diamonds and then exchanged for real money.
Income via this process is irregular, often coming in bursts, meaning creators could face delays between earnings settling in their account to cover everyday costs.
Research by Visa found that across multiple social media platforms, 86% of creator-run businesses are self-funded and half (49%) experience late payments, which highlights the ongoing cash flow challenges they face.
The new creator card aims to give creators access to the financial tools, including a separate bank account, they need to run and grow their business. It also offers a way to creators to access their earnings faster and avoid delays.
Lucy Demery, senior vice president, head of Visa commercial solutions, Europe, at Visa said: “We are incredibly excited to launch the UK creator card with TikTok to empower the next generation of entrepreneurs in the digital economy.
“This launch is designed to give creators faster access to income from TikTok LIVE, brand partnerships, and platform payouts, so they can spend, plan and reinvest in their business straight away. By simplifying access to funds, we’re helping creators manage cash flow with confidence, so they can stay focused on what they do best – growing their business.”
Creators as entrepreneurs
Creators are playing a key role in businesses’ influencer marketing strategies, with more and more gaming affiliates also using this advertising channel.
According to Visa’s research, there are around 200 million creators globally, with the sector projected to search $500bn by 2027.
The majority (88%) expect business revenue growth in the next year, with 85% (full and part-time creators) earning up to $100k annually. Many creators have multiple revenue streams with 94% posting brand partnerships, 78% engaged in affiliate marketing and 77% promoting services at least once a month.
However, more than two-fifths (41%) have had to turn down new opportunities due to cash flow issues, and a third (37%) say payment delays have caused them stress or anxiety.
Paula D’Urbano, country manager, TikTok LIVE UK, Ireland and Baltics, added: “TikTok LIVE is creating the next generation of digital entrepreneurs, transforming the way creators and audiences connect in real-time.
“By partnering with Visa, we’re giving the LIVE community even more ways to manage their rewards – helping creators to turn their passion into a sustainable career.”
