Why MSPs Need Automated Payments 

What are Managed Service Providers?

With the high cost of skilled professionals worldwide, businesses of all sizes are choosing to outsource some of their essential operations. Many are partnering with Managed Service Providers (MSPs) to handle everything from contingent workforce management to IT functions such as cybersecurity and infrastructure management.

MSPs are third-party companies that assume responsibility for a variety of business functions on an ongoing basis. They help organizations focus on core operations while providing cost-effective, expert support services.

With MSPs, companies can drive innovation, reduce costs, and access specialized expertise that would otherwise be out of reach.

They cover the full range of business functions such as onboarding and offboarding employees, logistical planning, communications, and much more. Teams can be tailored to each client, providing exactly the services the company needs.

Global expansion requires more sophisticated payments operations

As MSPs expand across borders, they increasingly encounter the challenges of managing and paying global contingent workforces.

Compliance is a constant challenge. Contingent workers must be classified correctly to avoid substantial fines. There are mandatory forms to submit, which differ from country to country, and a variety of local laws and regulations to track.

An inefficient and opaque payment process can also drive up costs. Some MSPs take on the role of vendors such as Employers of Record (EOR), Agents of Record (AOR), or staffing companies. That means they assume responsibility for paying their workforce – and the challenge of on-time and accurate payments.

Other MSPs work with these vendors, which often provide price quotes without including bank fees, resulting in higher costs. Payments are made by the vendors since they are engaged with the workers.

Effective payment technology can help companies avoid these kinds of “surprise” fees. With visibility into the entire payment process, MSPs know exactly what their workforce management costs are at every stage.

Unfortunately, even advanced MSPs typically rely on outdated, manual payment systems, which put them at risk of non-compliance, errors, and excessive fees.

Manual payment challenges for MSPs

When it comes to managing a global workforce, MSPs need to deliver accurate and on time payments across borders at high volume.

Most MSPs work with multiple vendors in numerous countries. Balancing a host of different spreadsheets manually can lead to processing errors, which can result in late or inaccurate payments.

With a manual system, the data streams for each vendor are siloed. There is no visibility and control on a global scale, making the payment process longer and errors harder to locate.

As a result, they often face:

High labor costs – When MSPs assume responsibility for paying their workforce, they have to process many salary payments across multiple countries. It requires a team of payroll and payments experts, driving up the cost of operations.

Excessive cross-border transaction fees – Making payments through different bank networks and in different currencies might require using correspondent banks, which add fees and slow down delivery time.

Uncertainty in payment delivery – Payment delivery typically focuses on the date the money was sent, with variations on how it will take the funds to arrive. Companies have little control over precisely when payments will reach the beneficiary.

Compliance complexity – in addition to misclassification risk and numerous regulations for every country, MSPs have to meet a range of requirements for KYC, FATCA, and sanctions guidance.

Replace manual payments with Papaya’s automated payments

Instead of manually processing multiple bank files to pay large teams of contingent workers or multiple vendors around the globe, MSPs can use Papaya Global’s payments platform – the first automated solution designed especially for global workforce payments.

With Papaya’s payments technology, companies can take control of their workforce payments on one platform.

MSPs can track their payments easily through audit trails and approval chains. They can assign a land date for the payments so they and their contingent workers will know when the money is scheduled to arrive.

They also channel the power of AI to enhance accuracy and compliance. The built-in AI-powered validation engine eliminates data discrepancies throughout the process and Papaya’s Cloud Connectors make data transfers a snap.

The solution also provides:

• Payments embedded in your VMS – Pay your entire contingent workforce with a touch of a button through your VMS. Integration is a snap with our Payments APIs.
• Automated KYC and compliance prescreening – Complete the necessary checks through the platform’s self–service features. The platform indicates which documents are required and alerts you if an aspect of the process requires your attention.
• Bank account verification –Test the system before launching payments to confirm that funds flow smoothly from your Papaya virtual IBAN account to your beneficiaries.
• Direct payroll file integration – Eliminate the need for manual data entry, which is time-consuming and prone to errors. Papaya’s AI cloud connectors integrate with other workforce management tools across HRIS, ERP, and more to consolidate all your workforce payroll and payments data.
• Competitive global transaction fees – Save money through Papaya’s competitive fees, and by eliminating unnecessary transfers though correspondent banks.
• Real-time transaction monitoring – See the status of all your payments at every stage of the process – all in one place, through Papaya’s payments platform or directly in your VMS.

The world gets paid with Papaya Global

Papaya’s payments solutions provide unmatched speed, accuracy, control, and visibility to the process of workforce payments. We strive to provide a timely land-date delivery, with a same day transfer rate of 95%.

Papaya Global’s payment services are offered through Azimo, Papaya’s licensed payments arm. Azimo is a payment services provider regulated in five tier-1 jurisdictions. These licenses allow Papaya, together with its partners, to provide workforce payments worldwide. For further information on Azimo’s licenses worldwide, check our licensing page.

To learn how Papaya’s payments can streamline your global payroll payments operations, book time with one of our payments’ experts today.