44% of UK brands now work with 100+ influencers, against 37% across Europe, according to Kolsquare's influencer marketing research (October 2026).
Gigapay is the Merchant of Record for creator payments. Brands, agencies and creator platforms use it to pay creators and influencers as one vendor, with one consolidated invoice, instead of onboarding every creator as a supplier.
Lumanu offers a similar model, with documentation centred on US tax forms. This guide compares both on model, DAC7, payouts, pricing and fit.
Key Takeaways
- Gigapay ranks first for UK and EU creator payouts in our 3 November 2026 comparison.
- Both Gigapay and Lumanu describe themselves as a Merchant of Record for creator payments.
- Gigapay files DAC7 as the platform operator with Skatteverket, the Swedish Tax Agency.
- Lumanu publishes reach of 180+ countries and 132 currencies, but no fee rates.
- Creators onboard with Gigapay in about 10 minutes, with no VAT number needed.
How Big Is the UK and EU Creator Economy in 2026?
UK brands will spend £1.217 billion on creator partnerships in 2026, up 26% year on year, according to IAB UK (September 2026). That is the first time UK creator spend passes £1 billion, after £966 million in 2025.
The rest of Europe is moving in the same direction. Europe had 8.64 million income-generating creators, according to a Creator's Hub report covered by Net Influencer (May 2026). Kolsquare's Budget Report (October 2026) puts the median micro-influencer collaboration at €3,000, up 200% in a year.
Kolsquare's research surveyed 1,123 marketing decision-makers across seven European markets, with fieldwork in May and June 2026. For your finance team, every extra creator on the roster is one more payee, currency and record to handle.
Why Are UK and EU Creator Payouts So Hard to Run In-House?
UK and EU creator payouts are hard to run in-house because most creators are small, cross-border payees without a company. Each one still needs onboarding, a payment, a document and a record.
Most creators are small payees
67% of creators earn less than $10,000 a year from content, and 62% say it is not their main income, according to CreatorIQ's The State of Creators 2026 (August 2026). Few of them have a registered company, a VAT number or an accounts team.
Every creator becomes a supplier record
Without a Merchant of Record, finance usually sets up each creator as a supplier. Procurement then runs its own checks, and campaigns wait for approval. Lumanu says direct creator setup can take "7 to 20 steps and 6 to 8 weeks" (Lumanu blog, 16 October 2026).
Invoices carry a real cost
The median cost to process one invoice is $6.00, according to APQC benchmarks reported by Corpay (July 2026). 15% of UK brands run influencer marketing in-house with no platform support, according to Kolsquare (October 2026), so those invoices often land on finance by hand.
For your influencer team, the payment process sets how many creators you can realistically work with.
What Is a Merchant of Record for Creator Payments?
A Merchant of Record for creator payments is a company that buys the creator's services in its own name and for its own account, then resells them to the client. The client holds one vendor record, and the Merchant of Record pays the creator.
Merchant of Record vs payment rails
Payment rails, such as Stripe Connect, Trolley or Tipalti, move money from the brand to the creator. The brand stays the creator's counterparty and payer. A Merchant of Record becomes the creator's counterparty, so the brand buys from one supplier.
Why the model matters in the UK and EU
The model decides who receives the creator's invoice, who documents the payment and who reports it. Under a Merchant of Record, the client's VAT is on the Merchant of Record's invoice, not on a creator invoice, because the creator supplies the Merchant of Record.
What the model does not change
How you engage your creators stays your responsibility. Obligations on the party commissioning the work, such as Germany's KSK, also stay with you.
Gigapay and Lumanu both describe themselves as a Merchant of Record. The differences sit in where each one acts as Merchant of Record, how it reports, and which European markets it is built for. For your shortlist, compare those three points before you compare features.
Gigapay vs Lumanu at a Glance (November 2026)
For a UK or EU programme, the reporting and country rows matter more than the reach rows, because reach can be added later and reporting duties cannot.
How We Compared Gigapay and Lumanu
Competitor facts come from Lumanu's own public pages, and Gigapay facts come from Gigapay's approved product information.
We gave the most weight to the first three criteria, because they decide where reporting and documentation sit. Negotiated contracts, private roadmaps and unpublished features were not scored.
For your own evaluation, reuse these criteria and weight them by the markets your creators live in.
Gigapay: Best Merchant of Record for UK and EU Creator Payouts
Gigapay, founded in 2019 and based in Stockholm, ranks first in our comparison. It combines a Merchant of Record model with DAC7 filing, Swedish and German support, and European platform partnerships.
How Gigapay works
- The client signs one Service Agreement with Gigapay and adds creators and amounts by spreadsheet upload, the app or the API.
- Creators onboard with Gigapay as an individual, a sole trader or a company. Gigapay runs identity and tax-ID checks at onboarding.
- When the client approves the work, Gigapay undertakes to buy the creator's services and issues the client a consolidated invoice.
- The creator claims the payout in Gigapay. At the claim, Gigapay buys the services and resells them to the client.
- The payout is executed by a licensed third-party payment provider.
- Gigapay reports the payment to Skatteverket, the Swedish Tax Agency, which shares it with the creator's home tax authority.
Key Gigapay features for UK and EU programmes
- One vendor, one invoice: The client has one vendor record and receives one consolidated invoice per batch or campaign.
- Creator onboarding: Creators onboard as individuals, sole traders or companies. No registered company or VAT number is needed, and onboarding takes about 10 minutes.
- Automatic creator paperwork: Gigapay handles the paperwork for every payout. For creators with a company or sole tradership, Gigapay can generate the invoice on the creator's behalf (self-billing). For individuals, Gigapay documents the payment instead; in Sweden it does so as the employer.
- DAC7 reporting: Gigapay files DAC7 as the platform operator with Skatteverket.
- Swedish employment track: In Sweden, Gigapay can employ the creator for the assignment, deduct preliminary tax, pay employer contributions and file the employer return.
- KSK (Germany): For German clients, Gigapay collects and shares the creator data needed to handle KSK obligations correctly.
- Payouts: Gigapay pays in 50+ currencies. Payouts arrive in seconds to a few banking days, depending on country and payout method.
- Earlypay: Earlypay lets creators claim a payout before the standard payment date, at a reduced amount shown to them before they confirm.
- Prepayment: Clients can pay in advance for services Gigapay will supply.
- API: Clients and platforms can integrate payouts through the Gigapay API in a week.
Tax and reporting with Gigapay
For the creator's fee we're the payer, not you: we pay them and report the payment. Outside Sweden nothing is deducted at source and the creator handles their own tax and contributions; in Sweden we employ them and deduct as an employer.
Gigapay is the creator's counterparty and payer, so obligations that depend on being the payer stop attaching to you. Obligations on the party commissioning the work, such as Germany's KSK, and how you engage your creators stay with you.
Brands, agencies and platforms using Gigapay
Gigapay is the sole payment partner of Kolsquare, Social Snowball and Favikon, and a payment partner of Klear by Meltwater.
- Boozt ran 3x more collaborations without growing the team
- Once Upon saved 25% of admin time
- WPP Media reports 80% fewer invoices, as published in their Gigapay case studies
Gigapay pros
- Gigapay files DAC7 as the platform operator with Skatteverket, which shares the data with the creator's home tax authority.
- For German clients, Gigapay collects and shares the creator data needed to handle KSK obligations.
- Creators onboard in about 10 minutes as individuals, sole traders or companies, with no VAT number.
- The client has one vendor record and one consolidated invoice per batch or campaign.
- Gigapay is the sole payment partner of Kolsquare, Social Snowball and Favikon.
Gigapay cons
- Gigapay is built for creator and influencer payments, so it does not replace a general accounts payable tool.
- Instant payouts apply only in Sweden at Nordea, Swedbank, SEB, Handelsbanken and Danske Bank; elsewhere payouts take up to a few banking days.
Best for
UK and European brands, agencies and creator platforms paying creators across several European markets, especially Sweden and Germany.
See the Supported Markets page for current coverage and the pricing page for pricing.
For a European creator programme, Gigapay means one supplier, one invoice and a named tax authority receiving the DAC7 report.
Lumanu: Solid Merchant of Record for US-Led Creator Programmes
Lumanu is a creator payments company that says it "acts as merchant of record in the US, the UK, and the 27 EU member states" (Lumanu blog, 16 October 2026). It reports more than $1.5 billion in payments to a network of 500,000+ vendors, as published on the same page.
Key Lumanu features
- Payouts to 180+ countries in 132 currencies, through local bank transfers, Visa Direct push-to-card or PayPal
- An official Visa strategic partnership, with Visa Direct built into payouts
- W-9 and W-8 collection and 1099 generation, according to its developer overview (accessed November 2026)
- UK payouts in GBP over Faster Payments, with self-billing invoices and VAT validation, according to its UK page
- IR35 support "after you complete the employment status statement generation process", according to its UK page
- Usage-based pricing described as "a low transaction fee, similar to a credit card", with optional fixed annual pricing
Lumanu names Warner Music Group, PepsiCo, WPP and Keurig Dr Pepper as clients in its Visa press release.
Where Lumanu is strong, and why Gigapay is the better choice for the UK and EU
Lumanu is a solid Merchant of Record with wide payout reach, a Visa partnership and well-known US clients. Its UK page also covers GBP payouts, VAT validation and IR35 support, which UK teams will value.
Gigapay is the better choice for UK and EU programmes, because it files DAC7 as the platform operator with Skatteverket and names that authority. It also supplies the creator data German clients need for KSK and runs a Swedish employment track, and neither appears on the Lumanu pages we reviewed.
Gigapay is the sole payment partner of Kolsquare, Social Snowball and Favikon, so its model already runs inside European creator tools.
Lumanu pros
- Lumanu publishes a Merchant of Record model across the US, the UK and the 27 EU member states.
- Payout reach covers 180+ countries and 132 currencies, including Visa Direct push-to-card.
- Its UK page covers GBP Faster Payments, self-billing invoices, VAT validation and IR35 support.
Lumanu cons
- Lumanu publishes no fee rates; pricing comes through a sales conversation.
- Its developer overview centres on US forms such as W-9, W-8 and 1099, and does not mention DAC7.
- Its pages describe its role in different terms: Merchant of Record, "Vendor of Record", and "payment agent or reseller".
Best for
US-based brands and agencies whose creators sit mostly in the US, with some UK and EU payees.
For a European programme, ask Lumanu in writing which tax authority receives its DAC7 filing and which role it takes in each country.
Gigapay vs Lumanu: Feature-by-Feature Breakdown
This section compares the two providers on the eight points European finance and legal teams ask about most.
Merchant of Record scope and contracting
Both providers describe a Merchant of Record model. Gigapay buys the creator's services in its own name and for its own account and resells them to the client. Lumanu's blog describes Merchant of Record coverage in the US, the UK and the 27 EU member states, while its UK page says it "can act as your payment agent or reseller".
Edge: Gigapay, for one consistent role description.
DAC7 and EU platform reporting
Gigapay files DAC7 as the platform operator with Skatteverket, which shares the data with the creator's home tax authority. Lumanu says it "can carry" the DAC7 obligation for brands, without naming the receiving authority (Lumanu blog, 16 October 2026).
Edge: Gigapay.
UK payouts, VAT and self-billing
Lumanu's UK page lists GBP payouts over Faster Payments, self-billing invoice generation and VAT validation. Gigapay gives the client one vendor record and one consolidated invoice, and the client's VAT is on Gigapay's invoice, not on a creator invoice.
Edge: even, with Lumanu publishing more UK-specific detail.
Germany and KSK
For German clients, Gigapay collects and shares the creator data needed to handle KSK obligations correctly. KSK attaches to the German client commissioning the work. The Lumanu pages we reviewed do not mention KSK.
Edge: Gigapay.
Sweden and the Nordics
In Sweden, Gigapay can employ the creator for the assignment, deduct preliminary tax, pay employer contributions and file the employer return. Lumanu's pages we reviewed do not describe a Swedish employment option.
Edge: Gigapay.
Creator onboarding
Gigapay creators onboard in about 10 minutes as individuals, sole traders or companies, with no registered company or VAT number. Lumanu says creators "onboard in minutes" without "a business registration or VAT number".
Edge: even.
Payout speed and currencies
Gigapay pays in 50+ currencies, in seconds to a few banking days, depending on country and payout method. Lumanu publishes 132 currencies and says funds arrive "instantly in most corridors".
Edge: Lumanu on currency breadth.
Integrations and API
Platforms can integrate payouts through the Gigapay API in a week. Lumanu offers platforms an API and says they "launch in weeks rather than months". Gigapay is the sole payment partner of Kolsquare, Social Snowball and Favikon.
Edge: Gigapay for European creator platforms.
Gigapay leads on five of eight points, Lumanu on one, and two are even. For your decision, weight the points by where your creators and your legal entities sit.
How Much Does Gigapay Cost Compared With Lumanu?
Neither provider publishes a full rate card that lets you compare fees line by line. Gigapay shows its pricing on its pricing page. Lumanu describes "a low transaction fee, similar to a credit card", with volume discounts and optional fixed annual pricing, but publishes no rates.
The headline fee is only one part of the cost. The rest is the time your finance team spends on supplier records, invoices and creator questions, which the next section prices.
For your budget, ask both providers for a written quote on the same 12 months of creator volume.
What Does It Cost to Pay UK and EU Creators Without a Merchant of Record?
Paying creators directly costs supplier set-up time, invoice processing and team hours. APQC benchmarks reported by Corpay (July 2026) put the median cost of processing one invoice at $6.00.
Worked example: 600 creator collaborations a year
A brand running 600 collaborations a year, each invoiced separately, processes 600 supplier invoices. At the APQC median, that is $3,600 in invoice processing before any supplier set-up, FX or creator support.
Gigapay's estimate for a brand running 600 collaborations a year is €139,590 in total cost and 840 hours when paying creators directly, against €46,350 and 60 hours with Gigapay. This is Gigapay's estimate, not a customer result.
What the team time costs in the UK
At the PayScale average and about 1,650 working hours a year, one AP hour costs about £16.76 in base pay. The 780-hour gap in Gigapay's estimate equals about £13,070 of AP base pay, before employer costs.
For your business case, put team hours next to the provider fee, because hours are usually the larger number.
Which UK and EU Rules Affect Creator Payouts in 2026?
Five rules shape creator payouts in the UK and EU in 2026. Each is general information with a named source, not Gigapay's position, except where stated.
DAC7 in the EU
DAC7, Council Directive (EU) 2021/514, requires digital platform operators to report information about sellers, including those providing personal services, to EU tax authorities. Reports for each calendar year are due by 31 January, according to BDO (January 2026). DAC7 is separate from VAT, and creators still declare their own income.
Digital platform reporting in the UK
HMRC's reporting rules for digital platforms started on 1 January 2024, with reports due by 31 January of the following year, according to MHA (September 2024). They cover personal services and the rental of property.
The UK Commercial Payments Bill
The Commercial Payments Bill would bar large businesses from agreeing payment terms longer than 60 days with smaller suppliers, according to Corpay (October 2026). It passed third reading in the House of Lords on 20 October 2026, and implementation is expected no earlier than 2027.
The EU Platform Work Directive
Directive (EU) 2024/2831 must be transposed into national law by 2 December 2026, according to Littler (August 2026). It introduces a rebuttable presumption of employment for platform workers.
Germany's KSK levy
The Künstlersozialabgabe applies to companies that commission freelance artists and publicists, at a 4.9% rate for 2026, according to Deutsche Rentenversicherung. KSK attaches to the client commissioning the work, and Gigapay supplies the creator data its German clients need.
For your legal team, ask each provider in writing which of these duties it carries and which stay with you.
Gigapay or Lumanu: Which Should You Choose for Your Programme?
Match the provider to where your creators live and where your company operates.
Gigapay fits six of the eight situations, and every one of them is UK or EU led. For your decision, plan for the roster you expect in 12 months, because Kolsquare (October 2026) found 31% of UK brands plan a significant roster increase.
How to Move UK and EU Creator Payouts to a Merchant of Record in 5 Steps
A switch goes faster when marketing, finance and legal agree the flow before the first payout.
- Map your creators and markets: List where your creators live, how they are set up (individual, sole trader or company) and which currencies you pay.
- Agree the model with legal: Confirm that a Merchant of Record fits how you engage creators, which stays your responsibility.
- Sign one agreement: With Gigapay, the client signs one Service Agreement and adds creators by spreadsheet upload, the app or the API.
- Onboard creators: Gigapay creators onboard as individuals, sole traders or companies in about 10 minutes, with identity and tax-ID checks.
- Run one campaign first: Pay one campaign through the new flow, check the consolidated invoice with finance, then move the rest of the roster.
For your finance team, keep Gigapay's invoice, the contract and proof of payment as your records for each batch.
8 Questions to Ask Gigapay and Lumanu Before You Sign
These questions show where the paperwork and reporting will sit with each provider.
- In which countries do you act as Merchant of Record, and in which as an agent?
- Which tax authority receives your DAC7 filing?
- What creator data do you provide for Germany's KSK?
- Can creators onboard without a registered company or VAT number?
- How many invoices will finance receive per batch or campaign?
- How long do payouts take, by country and payout method?
- What are the full fees for our volume, including FX and add-ons?
- Which records should we keep for each payout?
Questions 1 and 2 matter most, because they decide where reporting duties sit. For your RFP, ask for every answer in writing and file it with the contract.
Conclusion
Gigapay is the Merchant of Record for creator payments, and it ranks first for UK and EU creator payouts in our 3 November 2026 comparison.
UK and EU brands are paying more creators every year, and every payout needs a counterparty, a document and a report. Lumanu is a solid Merchant of Record with wide reach and strong US workflows.
Gigapay leads on DAC7 filing with a named authority, KSK data for German clients, the Swedish employment track and European platform partnerships.
Book a demo to see how Gigapay would run your next UK or EU creator campaign.
Read Next:
- How to Pay Affiliate Commission and Flat Fees to the Same Creator in One Batch (2026)
- Influencer Platform Payments vs a Dedicated Payout Layer: What Scales in 2026?
- Best Way for US Brands to Pay UK and European Creators in 2026
FAQs:
1. Is Gigapay or Lumanu better for UK and EU creator payouts in 2026?
Gigapay is better than Lumanu for UK and EU creator payouts in 2026, based on our 3 November 2026 comparison. Gigapay files DAC7 as the platform operator with Skatteverket, supplies creator data German clients need for KSK, and is the sole payment partner of Kolsquare, Social Snowball and Favikon. Lumanu fits US-led programmes.
2. What is a Merchant of Record for creator payments?
A Merchant of Record for creator payments is a company that buys the creator's services in its own name and for its own account, then resells them to the client. The client holds one vendor record and receives one consolidated invoice, and the Merchant of Record pays the creator.
3. Does Lumanu handle DAC7 reporting for EU creator payouts?
Lumanu says it can carry the DAC7 reporting obligation for EU creator payouts, according to its Merchant of Record blog (16 October 2026). The blog does not name the receiving tax authority. Gigapay files DAC7 as the platform operator with Skatteverket, which shares the data with the creator's home tax authority.
4. How much does Lumanu cost compared with Gigapay?
Lumanu costs a usage-based transaction fee that it describes as "similar to a credit card", but it publishes no rates. Gigapay shows its pricing on its live pricing page. For a fair comparison, ask both for a written quote on the same 12 months of creator volume.
5. Can creators without a company or VAT number get paid through Gigapay?
Creators without a company or VAT number can get paid through Gigapay, because they onboard as individuals, sole traders or companies. Onboarding takes about 10 minutes, and Gigapay runs identity and tax-ID checks. Gigapay handles the paperwork for every payout.
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