Visa extends its reach into the creator economy's liquidity crunch

"Creators continue to wait too long to get paid, according to several ad execs interviewed for this story. What should be routine disbursements can slip from days into weeks and whatever finally shows up has already been thinned out by an expanding chain of middlemen - agencies, platforms and financial processors - each taking a slice on the way through."

"Visa is using creator financial platform Lumanu's pre-funded wallet and agent-of-record system to move creator, freelance and production worker payments through Visa Direct, replacing week-long cross-border transfers with near instant payouts. Lumanu handles onboarding, compliance, invoicing and distribution across global markets, while Visa supplies the real-time rails. Together, they streamline how brands and agencies fund projects and pay talent, reduce hidden fees and open access for smaller creators who often struggle with slow settlement and rigid vendor-setup processes."

""Through its partnerships and global payout infrastructure, Visa is able to gain important insight into how money moves through the creator economy," said Mark Nelsen, global head of product, commercial and money movement solutions at Visa in an email. "This information helps identify pain points such as slow payouts and compliance challenges and informs new offerings like instant payouts, embedded financial tools, and more for creators.""

Payment frictions are undermining creator earnings as routine disbursements frequently slip from days into weeks and are diminished by agencies, platforms, and financial processors each taking a cut. Payment terms have lengthened, with some payouts stretching to 90 days or even 120 days according to Revving. The marketplace has become shaped more by financial and bureaucratic plumbing than by creator output. Visa and Lumanu pair Lumanu's pre-funded wallet and onboarding services with Visa Direct's real-time rails to speed cross-border transfers, reduce hidden fees, and expand access for smaller creators. Lumanu has processed about $1.5 billion to date, with roughly 30–40% of that volume international and now routed through Visa Direct.

Read at Digiday