Payroll Fintechs and the corporate benefits market: advantages and new opportunities
10 minutes reading
Innovation has reached the corporate benefits market, unveiling a multimillion-dollar niche bursting with opportunities. Far beyond just paying salaries, these so-called payroll fintechs have come onto the scene with tools that promise to generate significant gains for companies and their employees.
This new segment of fintech was created from an overarching need: to facilitate payroll processing. But the range of services offered didn’t stop there.
In this article we discuss what payroll fintechs are, the services they provide, and how they can contribute strategically to your business’ growth.
What are Payroll Fintechs?
The purpose of a payroll fintech is to simplify a company’s payroll processing and to manage employee benefits.
The services payroll fintechs provide can extend far beyond depositing salaries, however. For example, they can facilitate your business’ adaptation to local labor legislation, guarantee correct tax calculation, facilitate credit, and issue benefits cards.
This means that payroll fintechs can provide products other than financial services, and bring strategic advantages to businesses.
What are the advantages of creating financial solutions that focus on corporate benefits?
Advantages for companies
Payroll fintechs have tools that help a business manage some of its back-office functions, helping guarantee compliance with labor laws, as well as correct calculation and payment of taxes.
In micro and small companies in particular, this is an important differential. By simplifying crucial stages of management and reducing the burden of staying in compliance with standards, a company can focus its efforts on other areas.
For example, financial and human resources can be allocated to attract new clients. In addition, the advantages to employees contribute to reducing absenteeism and turnover, increasing their motivation and productivity.
Advantages to employees
The main advantage for employees is convenience and better management of their personal finances. This might be through products with discounts via the digital marketplace, benefits cards, or access to credit with better conditions.
There is even an important advantage from the bureaucratic point of view. When someone receives remuneration through a payroll fintech, it is easy to obtain income and employment vouchers with other institutions using technology made possible by the API Economy.
Finally, the impact the availability of financial planning tools on the app and sites of payroll fintechs can have on employees’ financial health is undisputed.
What services can Payroll Fintechs offer?
We looked for examples of payroll fintechs all over the world to illustrate the potential of the main services they offer.
Complete digital account
Your business can create its own digital bankthrough which employees will receive their salaries and have access to important products and financial products, such as loans, instant payments, transfers, bill issuance, reloads, etc.
It is an additional source of revenues for the company, and one more convenience for the employee, who can access personalized tools to match their profile in their digital accounts .
Earned wage access
The so-called EWA, or Earned Wage Access, is one of the most attractive features for employees who receive their salary through payroll fintechs.
Since managing hours worked is centralized in these fintechs, elas they can calculate the parcel of the salary already earned in the current month, almost in real time..
Thus, upon payment of a fee, the employee has the option to receive early payment of that portion of remuneration to which they are entitled, which in many institutions is calculated by the beneficiary.
This is an alternative to credit that is simpler and less expensive than the already-popular consigned credit.
Receiving salary in cryptocurrency or foreign currency
This is a very useful option for companies with employees working remotely, or located in other countries. Using a payroll fintech, salaries can be paid in the local currency of wherever the employee lives, or even in cryptocurrencies.
In addition to being very convenient for the employee, it is particularly interesting for people who live in areas where banking services are more subject to instability and slow payment processing.
Benefit cards and marketplaces
The partnership with payroll fintechs allows access to products and services under special conditions, such as payment via benefit card and purchases in a digital marketplace, for example.
Employees access everything they need from the fintech where they receive their salary.
Social security services and promoting financial health
By centralizing data from payroll processing and benefits in the same institution, companies can ensure that payroll fintechs offer every employee products that are tailored to their particular time of life.
Broad access to individual information allows fintechs, when making their salary payments, to help their clients’ with personal financial planning, for example, by encouraging savings and investment habits.
Little by little, as their financial health improves and their level of financial education contentexpands, the company’s employees are better able to use advisory services and define future goals. Consequently, their well-being and motivation tend to increase.
Dock can help your company have its own digital bank
Through the Dock Oneplatform, Dock's Banking solution allows your company to build its own bank to offer a complete digital accounts that facilitates financial transactions and even loans, quickly and securely for your employees.
Through our open APIs, the digital bank will bear your brand, acting as yet another strategy to attract employees and build their loyalty, strengthening your operation, and diversifying growth possibilities.
Dock’s platform is quick to implement, with the most up-to-date innovative functionalities such as Pix guaranteeing the security of the anti-fraud system in every transaction. We also provide all regulatory and accounting support, as well as the tools necessary for your account reconciliation.
Learn all about the Dock One:
Crie seu próprio programa de benefícios com a Dock
Por meio da solução de Cartão Multibenefício as a Service, a Dock ajuda sua empresa a oferecer cartões de benefícios flexíveis, como vale-refeição e vale-alimentação com a sua marca.
O Programa de Alimentação do Trabalhador (PAT) é uma iniciativa do Governo Federal brasileiro em parceria com as empresas, de adesão voluntária, que visa à garantia de alimentação para trabalhadores. Qualquer pessoa jurídica com funcionários pode aderir ao PAT.
O PAT funciona conforme uma alíquota aplicada sobre o valor total utilizado para contribuir para a alimentação dos funcionários. Uma das vantagens é que a empresa pode receber uma dedução de até 4% em seu Imposto de Renda e ainda ter isenções de alguns encargos sociais, como FGTS e INSS.
Além do PAT (Refeição e Alimentação), a solução da Dock também inclui benefícios flexíveis personalizáveis:
- Mobilidade: postos de gasolina, estacionamento, transporte público e privado;
- Saúde: serviços médicos e hospitalares, farmácias, apps de saúde física e mental;
- Home-office: provedores de internet, papelaria, energia e telefone;
- Cultura: cinema, museu, livrarias, bancas de jornal, shows e eventos;
- Educação: cursos online, técnicos e superiores.
- Saldo Livre: saldo para gastar em qualquer tipo de produto/serviço.
Quer saber mais sobre a nossa solução? Confira o painel do Roberto Amud, Credit Director da Dock, durante o FEBRABAN TECH 2023, na Fluid Arena:
Com a Dock One, o seu negócio pode se tornar um emissor de cartão white label que possibilita a divisão do saldo de benefícios em várias categorias, além de Alimentação e Refeição.
Conte com a Dock para ajudar seu negócio a crescer e usufruir das oportunidades no mercado de benefícios corporativos!
Payroll Fintechs: what you saw in this article
- Payroll fintechs are created with the purpose of simplifying a company’s payroll processing and managing employee benefits.
- Advantages for companies: payroll processing, compliance with labor legislation, tax calculation, managing corporate benefits, and increasing employee motivation.
- Advantages for employees: personalized financial products and services, benefits cards, marketplaces, access to financial planning tools, simplifying income and employment verification with other institutions.
- Examples of the main services offered by payroll fintechs: Earned Wage Access (EWA), social security services and financial health support, payment of salary in foreign currency or cryptocurrency, complete digital accounts, benefits cards, and digital marketplace.
- A solução PAT as a Service + Multibenefícios da Dock, uma solução adaptável baseada em APIs dentro da plataforma Dock One, tem tudo o que seu negócio necessita para oferecer cartões Vale-Refeição ou Vale-Alimentação + benefícios flexíveis com marca própria, seja para outras empresas ou até para seu quadro de funcionários.
- Tokenization: what is it, and how does it impact financial services?
- What is Innovation as a Service and how to apply it to the financial universe?
- Neobanks: A growing industry playing an important role for accessing financial services
- Fraud management: How CCS Dock | FICO® solution blocks fraudulent transactions without compromising your customer experience