Good news for Bacs Bureaus: Pay Employees Instantly

18th Oct 2021
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The rise of digital banking and easy access to Faster Payments Service means quicker payments, a reduction in errors, and more time for other tasks. This is good news for Bacs bureaus who make payments through Direct Debits or Direct Credit on behalf of their clients. 

How is digital banking changing payroll?

Bacs has been the primary payment method used throughout the UK since its introduction in 1968. It has been a reliable method of clearing and settling automated payments for accountants and employers ever since.

Offering Bacs payments as a service, requires a bureau to directly submit payment instructions to the Bacs system on behalf of their clients. Creating and submitting Bacs files for each client, each pay period can be time-consuming, especially so if clients are paying weekly or fortnightly wages. The bureau typically does this at least three days before the payment is due, as a Bacs transfer usually takes up to three days. Although it’s an electronic system, it doesn’t work on the weekend. Payments can only be sent on, and even more frustratingly, can only be received on business days.

The more efficient alternative for Bacs Bureaus is to use the Faster Payments method which can settle payments in under 90 seconds. The system runs 24/7, 365 days a year, including public holidays. BrightPay considers Faster Payments to have numerous benefits and has partnered with Modulr to ensure it is available to our customers. The integration with Modulr significantly simplifies the task of paying your clients’ employees, while also adding value to your payroll services.

We recently spoke to BrightPay customer, James Toulson, Managing Director of One Less Worry payroll services, who signed up to Modulr. He began using Modulr for making Faster Payments and has already seen the benefits. 

I used to have a minimum 3-day turnaround before my clients’ employees were paid, now with Faster Payments it’s taking approx 90 seconds. Not only am I saving time by using Modulr, but I’m also saving money.

Why is Modulr good news for Bac’s bureaus?

Many businesses outsource the responsibility of managing employee payments to Bacs bureaus, as it can take a significant amount of time. With the BrightPay Modulr partnership, you have access to the Faster Payments Service (FPS) scheme and a payroll-payment integration, providing you with an automated workflow. This means you can save time when managing payments. By initiating payments within the payroll software, you no longer need to upload any bank files, eliminating numerous steps associated with Bacs payments. Double entry of payroll figures is well-known for producing errors. A benefit of an integrated system such as this, is the reduction in data entry mistakes.

Modulr will be of interest to any bureaus who manage payments and are interested in offering this as a new service or want to save a huge amount of time. The video above demonstrates how easy it is to get set up and to settle the payments. 

How does it work? Clients have access to their own Modulr payment account. When payroll is finalised, you initiate the payment from within BrightPay. The client approves the amount and transfers the funds to their Modulr account. Employees are paid in minutes with the payment almost immediately visible in the recipient's account moments after sending.

Interested in learning more?

To learn more about the BrightPay Modulr integration and the pricing available to our bureau customers, speak to the BrightPay team today. Already a BrightPay customer? Book a demo directly with the Modulr team to learn more.

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