In the on-demand PayrollOrg webinar, “Why Payroll Execs Are Moving to Virtual Payroll Accounts,” sponsored by Papaya Global, experts take a deep dive into the current challenges global payroll management faces and what solutions are available to streamline the process.
The webinar also explores critical topics, including the following:
- Pros and cons of a payroll wallet vs. payroll bank accounts globally
- How companies can accurately forecast payroll costs to increase work capital
- How streamlining global payments can turn from a burden into a strategic asset
“Payroll can be difficult enough in one country, but when you’re doing it globally it’s next level and beyond,” said speaker Ian Giles, Global Payroll Strategist for Papaya Global. “It becomes complex for a variety of reasons, most importantly regulations, compliance, data security, and banking laws.”
Giles provided hard data that demonstrated the phenomenal expansion of the global payroll workforce, which currently impacts at least 3.5 billion people, and is still growing.
“By 2030, it’s estimated that Africa alone will contribute a further 1.1 billion people [to the global workforce]. That number is currently 500 million for scale,” he said.
Although this is, according to Giles, the “Era of Tech” where payroll management solutions are vastly available, there is still no consistency among businesses over how global payroll and payments should be managed. Businesses use a variety of processes with varying utility of integration.
Manual processes, which can use no more than a pen and paper, are still utilized in as many as 25% of businesses to process global payroll today. These inconsistent processes result in inefficiencies, payroll errors, and potentially billions of dollars in loss due to global data breaches.
“Payroll and payments don’t run smoothly if they rely on unnecessary multiple processes, systems, and parties. It is just not possible,” Giles said.
Payroll Wallet vs. Payroll Bank Accounts
Payroll tech is evolving, and businesses are jumping to the next big innovation: payroll wallets.
“A virtual wallet is ultimately a virtual account that adds another layer of global compliance and flexibility to businesses’ bank accounts,” said John Nash, Payments Director at Papaya Global.
Virtual wallets allow the use of multiple currencies through mobile apps and online platforms and secures data. They also provide capabilities such as purchasing, transferring funds, and other financial activities for users.
“We have seen a huge change in the way people consume pay throughout the COVID-19 pandemic,” Nash said. “Ten to 15 years ago, we all had a bank card and we had done 90% of our spending on them. Now we have more alternative ways to pay...”
Virtual wallets can offer a multitude of advantages over traditional bank accounts, such as speed of processing, compliance levels, and a unified platform. While Nash reassures that bank accounts aren’t going away overnight, as they are still a staple for global payroll and access to international workers, the innovation of unified platforms can allow businesses to become more efficient in their future payroll and payment endeavors.
“The key is time and transparency,” Nash said. “Virtual wallets can be opened in a matter of days compared to opening a bank account in a matter of months.”
This on-demand webinar is available for free on the PayrollOrg website until 30 June 2024.