Optimizing Global Payroll: Overcoming Challenges with Payment Innovation

Optimizing global payroll

Overcoming challenges with payment innovation

The employment landscape has changed dramatically in the last 5 years. Gig economy volume more than doubled1, which called for payroll companies of all sizes to adapt a more agile approach to their customers payroll needs.

Businesses still face challenges when it comes to processing payments effectively, with 61% of companies suffering varying payroll cash outflows due to shifts in employment2.

From providing timely and accurate net salary and off-cycle payments to ensuring Earned Wage Access (EWA) payments are available to all employee types (full time, part time, gig economy, freelance, EoR) payroll companies are looking to payment providers to future proof their business.

In this guide, we explore 3 key pain points in the global payroll industry, along with actionable strategies to address them. Discover how to enhance efficiency, reduce costs, and elevate the payment experience for both employers and employees.

Speed up payouts

CHALLENGE:

Business’ payroll needs are increasingly diverse. Net salary payments are traditionally processed via account-to-account (A2A) transfers.

In the gig economy, however, payouts via A2A rails can be seen as too slow, hindering payout efficiency. At least 25% of all employees have experienced a paycheck error, but if the error is experienced twice, 49% will look for a new job. Slow payouts in fast-paced markets can also disrupt employee satisfaction and create financial hardships. That is why flexible and timely payments are essential for maintaining a productive workforce.

49%

of all employees who have experienced a paycheck error twice will look for a new job

SOLUTION:

By leveraging a payment service provider with multiple payout solutions, payroll companies can expedite net salary payments as well as EWA. Such payout options include popular global card rails

Visa Direct and Mastercard Send, SEPA transfers in the EEA, RealTime Payments (RTP) for crossborder transactions and payments to wallets like PayPal and M-Pesa.

Freelancers, who rely on flexible income, benefit greatly from accessing their earnings quickly. 77% of EWA users request to receive funds instantly3. Platforms like Uber already utilize Visa Direct and Mastercard Send to enable workers to access their income instantly.

Additionally, by offering prompt access to earned wages, payroll service providers empower gig economy workers with financial stability and in turn reduce the reliance on payday loans.

77% Businesses can also benefit financially by implementing instant payout options via card rails.

Push to card can reduce the payroll cycle from an average of fiveseven days to 2-3 days, providing significant improvements in working capital.

By making these changes, businesses can optimise capital allocation into priority areas.

of EWA users request to receive funds instantly

instant payouts

reduce the entire payment cycle from 5-7 days to 2-3 days

Increase payment flexibility

CHALLENGE:

Employees have various financial needs and preferences when it comes to receiving their earnings. 89% of employees around the world feel more motivated having access to their pay on a flexible schedule4.

At the same time, more than 80% employers believe financial wellness tools help create a more productive, satisfied and engaged workforce.

Having limited access to locally preferred payment options can lead to dissatisfaction, financial stress, and reduced employee loyalty. This is especially important for employees enjoying both net salary and off-cycle income such as commissions, bonuses, and other incentives.

Businesses must adapt to evolving employee expectations to maintain a competitive edge and cultivate a positive work environment.

89%

of employees around the world feel more motivated having flexible access to their pay

This flexibility enables employees to manage their personal finances more efficiently, with the option to withdraw earnings to multiple accounts or use EWA funds for everyday expenses.

In the meantime, employees can ensure net salaries are allocated toward significant financial commitments like mortgage payments.

When employees have control over how and where their earnings are allocated, they feel empowered and appreciated, leading to increased job satisfaction and improved overall performance.

Optimize payment infrastructure

CHALLENGE:

Payment orchestration, however popular in global eCommerce, is a relatively new concept in the payroll industry. Its unfamiliarity can pose growth and optimization challenges for payroll service providers.

Without assessing the benefits of payment orchestration, companies may struggle to streamline their payment processes, integrate and manage multiple payment methods, and optimize their payment ecosystem.

The absence of these crucial optimization processes inhibits operational efficiency and limits the ability to provide a seamless payment experience to clients.

SOLUTION:

With an integrated Payment Orchestration platform, payroll service providers can streamline their payment processes, centralize payment management, and gain real-time visibility into transactions.

This technology ensures frictionless integration with various payment methods, reduces manual reconciliation efforts, enhancing operational efficiency and improving the customer experience.

Find out how to choose the right platform for your business here .

CloudPay is already optimizing their payments with Nuvei

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Where next?

The trusted payment platform for the future of Healthcare industry:

20+ years’ experience

Globally connected

Future-proof payout options

Deliver cutting-edge payment experiences

Move forward with the payment platform that’s ahead of its time.

600+ alternative payment methods

150 worldwide currencies

99.99% platform uptime 24/7/365 human support

200 global markets

The most agile payments platform in the industry

Single Integration

Supported by a dedicated team of experts to customise your payments

Industry Experts

Industry-related experts to inform you with the latest trends, payment-specific regulations and networking events.

APM Experts

A team of Alternative Payment Method experts to offer insights within industry-related payment method trends, per country.

Technical Experts

Technical resources to implement new features and functionalities in existing and new growth markets.

Legal and Scheme Support

Ensuring your business is constantly up to date with all relevant scheme rules and regulation mandates.

Fraud and Risk Specialists

A dedicated fraud and risk team who provide advice and experienced-based suggestions on fraud prevention tactics and best practices at merchant, global and specific industry levels.

Dedicated Relationship Manager

Single point of contact, managing resources to exceed your business needs.

ABOUT NUVEI

Nuvei (Nasdaq: NVEI) (TSX: NVEI) is the Canadian fintech company accelerating the business of clients around the world. Nuvei’s modular, flexible and scalable technology allows leading companies to accept nextgen payments, offer all payout options and benefit from card issuing, banking, risk and fraud management services. Connecting businesses to their customers in more than 200 markets, with local acquiring in 45+ markets, 150 currencies and more than 600 alternative payment methods, Nuvei provides the technology and insights for customers and partners to succeed locally and globally with one integration.

For more information, visit nuvei.com

CONTACT:

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North America: Ella Koren