In the modern world of employment services, payments play a critical role in how well employers and contractors are served. In fact, with significant influence on costs, compliance and capabilities, payments are absolutely essential to the success of an employment organisation. With the right payment solutions in place, payment processing can even become a competitive advantage, and in a highly saturated market, this can drive both growth and profitability.
With innovative API enabled payment technology, forward thinking employment agencies and umbrella companies are embracing the benefits to meet regulatory requirements and improve the service they offer to employers and contractors.
Using innovative API enabled payment services, employment organisations are:
Offering flexible and cost-effective access to Faster Payments
With Faster Payments, employment organisations are paying workers quickly – as soon as 30 minutes after the end of their working week. This is helping to improve individual cash flow and reduce the number and extent of admin errors.
In addition, by providing contractors with transparent and accurate account statements, while simultaneously reducing payroll errors, Faster Payments is making major savings for businesses and the lives of contractors that little bit easier.
Reducing the administrative overhead of processing Bacs files
The use of traditional Bacs payment services, manual CSV files and reconciliation is often time consuming and expensive. Beyond the cost, payroll processing in this way is typically error-prone and creates further unnecessary operational overheads.
By moving away from slower Bacs payment processing times and the related inefficiencies, employment services organisations can significantly reduce the admin required and make payroll simple. This lowers costs and helps limit the errors often experienced, avoiding expensive reconciliation.
Lowering the costs and complexity of integration with payroll and other critical business systems
With the arrival of the European Union’s Second Payment Services Directive (PSD2) and the Open Banking Initiative, API enabled payment services are now easier to integrate into existing systems than ever.
As such, it’s become much simpler for companies to integrate external systems into their software and payroll. This has assisted in radically simplifying payments and helped businesses to embrace payments automation, making reconciliation easier and providing richer data for reporting purposes.
As employment service providers continue to evaluate their payment capabilities, many will find significant opportunity to improve.
Using an innovative payment solution like Modulr, employment organisations can achieve compliance with ongoing regulatory changes, while unlocking efficiencies in their payroll processes. This will enhance their service offering, significantly reducing costs and maximizing profit margins.
See how Modulr can help your employment services business get a competitive edge by downloading our guide on the role of payment processing in employment services.