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In an increasingly interconnected world, businesses are expanding across borders at a faster pace than ever before. With this expansion comes a growing challenge—how to efficiently and accurately pay employees worldwide.
As companies scale, so too does the complexity of their payroll payments, and new data suggests that many businesses are struggling to keep up.
According to the Global Payroll Payments Report for 2025, 66% of payroll professionals lack the tools to understand their current costs with banks and payment providers. Meanwhile, 15% of businesses juggle more than 11 payment providers globally, leading to inefficiencies and compliance risks. With 75% of respondents managing payroll in up to 25 countries, the challenge of ensuring accurate, timely, and cost-effective payments is only growing.
Even more concerning, FX discrepancies affect 18% of payroll payments, potentially reducing the accuracy that payroll providers claim to achieve. At the same time, 61% of businesses cite legal and regulatory compliance as their biggest challenge, underscoring the need for better oversight and consolidation in payroll payments.
We met with Nicholas Joy, Head of Global Payroll Sales at TransferMate and an expert in global payroll payments, to discuss these findings and explore how businesses can simplify their payroll operations, reduce costs, and improve compliance in an increasingly complex global landscape.
Q: Hi, Nick. Thanks for meeting with us today. What statistics from the Global Payroll Payments Report stood out to you the most?
Well, I was surprised that 66% of respondents didn’t have the tools to understand their current costs compared to banks and other payment providers. But I understand the confusion. When businesses work with multiple partners, the cost structures are inconsistent across providers and banks. There are platform fees, transaction fees, and margins, which vary by country and currency.
If banks or payment providers provided a single comparable cost structure for customers, this 66% figure would drop significantly.
Data is a huge asset for global organizations; making it more accessible can drive better decision-making.
One more thing that caught my eye was foreign exchange (FX) discrepancies.
While payroll companies boast 99% accuracy, the report showed FX discrepancies in 18% of transactions, which impacts payroll accuracy.
Businesses need to understand how their bank or payment provider handles FX rates. Do they charge up front? Do they lock in rates? Are there hidden fees? Discovering these details is key to reducing errors and ensuring employees receive the correct payments.
Q: Were you surprised businesses still struggle to compare FX rates and costs despite having multiple providers?
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Yeah, and that's a huge issue. But, consolidation can be a turning point. A company with over 11 different providers—banks, payment processors, or local experts—creates a massive workload for the treasury team.
The larger the organization, the bigger the challenge.
In payroll, consolidation is key for efficiency and accuracy, including the payment process. While it’s not always possible to work with a single provider, reducing the number of partners from 11+ to a handful of regional providers can save a lot of time and effort. And that doesn’t just stick with payroll; it’s everything around it – including the payment side.
Could you imagine having to pull reports from 11 different partners, merge them into a single comparative format, and only then start analysing costs?
Some reporting tools help automate this process, but there’s always the risk of human error, adding to the workload. Having everything in one place, in a single standardized format, makes life much easier.
Q: With the rise of remote work and digital nomads, were you surprised by how many countries businesses are now paying into?
Not really—I’ve seen this trend increasing rapidly. Globalization is essential for business growth. New employees want flexibility, and companies offer remote work as a key benefit.
Some companies now allow employees to work abroad for part of the year, handling tax and compliance issues through their payroll systems.
Challenger payroll organizations are pushing this agenda, and it’s working. People want to travel and be where they want to be. The world keeps getting smaller, and companies that embrace global mobility will be more competitive in attracting and keeping top talent.
Q: How big a challenge are labour laws and tax compliance for businesses, and how does consolidating payment providers help?
With payroll comes tax—no matter the country, there’s always something that needs to be paid beyond salaries. Different jurisdictions have different requirements, and failing to pay taxes accurately and on time can result in huge fines from local authorities.
It’s a growing challenge, but third-party solutions can help. Global payroll organizations and Employer of Record (EOR) companies specialize in compliance, ensuring businesses follow local tax laws and labour regulations. Consulting firms can also provide expertise in this area.
At TransferMate, we focus on the payments side of payroll. While we don’t set up payroll systems, we have a vast ecosystem of partners who can help businesses navigate tax and compliance issues, ensuring they can pay employees in different countries quickly and accurately.
Having a single payment provider that can pay salaries and tax authorities directly is a great benefit.
Instead of managing multiple providers for salary payments and tax remittances, businesses can consolidate payments into one streamlined system, reducing complexity and improving compliance.
Q: What actionable insights can businesses take from the Global Payroll Payments Report?
There are insights on almost every page of the report, but I’d highlight three key actions:
1. Short-term: Understand your costs. Some countries will always be more expensive, but businesses can quickly identify inefficiencies and reduce unnecessary costs.
2. Medium-term: Consolidate payment providers. Reducing the number of providers cuts costs, improves efficiency, and simplifies processes.
3. Long-term: Address compliance issues. Partnering with global payroll organizations, EORs, or payment providers can ensure compliance with local regulations, reducing risk and fines.
Q: What benefits do SMEs, and large corporations gain from working with a payment provider?
For smaller enterprises, the largest concerns are cost and effort.
Any cost savings can be reinvested into growth, and working with a trusted payments partner ensures compliance as they expand into new territories. Single reporting formats also simplify treasury operations.
For large corporations, cost savings are nice, but the real value is in efficiency and strategic planning.
A payments provider can consolidate data, identify the best investment locations, streamline transaction routes, and improve compliance. No matter the size of the business, if they work with multiple currencies, a payments partner is essential for global expansion.
Q: What strategies are businesses using to improve payroll payments?
Most of what we’ve discussed—consolidation, cost-cutting, and process efficiency.
But we’re also shifting towards faster payment rails and on-demand pay.
Many companies now offer on-demand pay, allowing employees to access wages as they earn rather than waiting for payday.
This trend is growing fast, and businesses need fast, reliable payments to support it. Payroll payments are among the company's most critical transactions, so choosing a trusted partner is essential.
Q: If you had one piece of advice for businesses to simplify their Global Payroll operations, what would it be?
Understand your costs, consolidate payment providers, and ensure compliance.
These aspects are key to optimizing your global payroll. Companies that take these steps will have a smoother, more efficient payroll process and avoid unnecessary risks.
Nick, thanks for your time.
Want to simplify your global payroll payments? Learn more about how TransferMate can help your business pay employees faster, smarter, and compliantly by contacting our team today.
Want to learn more from the Global Payroll Payments Report 2025? Download the report now.
