The Future of Payroll: Pay employees in 90 seconds
The COVID-19 pandemic has changed how we do business forever. We have adapted and innovated to adjust to what has become our “new normal.” The payments industry is one of many that is going through a period of unprecedented change. To help stop the spread of the virus, many businesses began to encourage customers to use card and contactless payments and curtailed the use of cash when paying for goods or services. It is not just the use of cash that is declining; around 160 banks have closed across the UK so far this year. COVID-19 has accelerated the rate of closures as technology evolves and people prefer to go online as they want instant access to their funds 24 hours a day, 7 days a week. As payment systems evolve at a faster rate than ever, it is important that you consider how this could affect your business.
The oldest payment system in the UK, the Bacs payment system, is still used by thousands of businesses across the UK. It has allowed organisations to make payments directly into another bank or building society account since 1968. However, technology is changing and those who continue to use Bacs are at risk of getting left behind.
Faster Payments Service is an electronic payment system first launched in 2008 and is the system behind the global money app Revolut which allows users to pay for goods or services or send money to peers instantaneously. Faster Payments have not only revolutionized how we pay for things or how we send money to others. Faster Payments can also be used by businesses to pay employees, and it has revolutionized the world of payroll.
What are the advantages of using Faster Payments to pay employees?
One main advantage of Faster Payments is that it can be integrated with your payroll software, which straight away is going to save you time by cutting out manual processes. This integration means you also lower the risk of costly, time consuming payment errors.
You no longer need to export bank files and upload them to your online banking. A few simple clicks within your payroll software and logging into the payment’s account portal to approve the payment is all you need to do to pay employees.
With the Bacs payment system, you may be used to having to submit your files in advance to allow for the 3 business days it takes for Bacs payments to settle. With Faster Payments, money can be sent 24/7, 365 and payments can be settled within 90 seconds. This means you have extra time to make sure all payroll information is correct, calculations are accurate and make any changes or adjustments which may be needed.
Benefits of using Faster Payments over Bacs
BrightPay payroll software has partnered with Payments as a Service API platform, Modulr to offer a faster, easier, and more reliable way for accountants and employers to pay employees. Once set up with a Modulr account, bureaus and employers can begin managing employee's payment workflows in the Modulr portal.
Join us for our free online webinar where we discuss this new integration and the benefits it can have for your business.
- Pay Employees Directly through BrightPay
- Payroll in the Connected Era: How integration has transformed the world of payroll
- BrightPay payments – a new revenue stream for accountants