Paysend and Transformify Team on On-Demand Payroll Services

British FinTech Paysend and payroll platform Transformify have teamed to help contractors and vendors get paid.

“Paysend will power Transformify’s new payout-to-cards capability for vendors and contractor payroll on-demand,” the companies said in a news release Monday (Feb. 27).

“This will enable Transformify’s business clients to pay their remote employees directly to their Visa or Mastercard, and at a low cost through the Transformify platform.”

To use the Paysend platform, contractors supply their full name and bank card number, and businesses can make payments instantly and directly to their bank cards, using Mastercard or Visa rails. This process avoids SWIFT and intermediary bank fees, and 90% of transfers arrive in 15 seconds at the most.

Taras Paseshnik, global product manager for Transformify, called the partnership “a breath of fresh air for those payees who are not familiar with international bank payments and industry-specific terms like SWIFT, IBAN and routing number.”

In addition, faster access to payroll can help consumers avoid more costly financial solutions, such as payday loans, PYMNTS reported recently.

Payroll delay is an epidemic for American workers, gig employees in particular. Studies have found that nearly 3 in 4 freelance workers have not received their pay on time, with 20% receiving pay one day late and 16% reporting they are regularly not getting paid for up to two months after they expected.

While freelancers feel the most acute payment delays, salaried employees are no strangers to payroll delays, either — even those who receive their paychecks via a regular biweekly schedule often report financial difficulties when waiting for their next pay period.

Meanwhile, with close to two-thirds of Americans living paycheck to paycheck, many consumers face financial ruin if an unexpected expense happens outside the traditional pay period, creating a deep need for faster payroll solutions.

Paysend also recently teamed with Purpl to enable money transfers to Lebanon, combining its global payments ecosystem and Purpl’s remittance and cash out platform

In an interview with PYMNTS earlier this year,  Paysend Co-founder and CEO Ronnie Millar said that a shift in mentality is happening as consumers who once considered sending money a lengthy, complex process now embrace the digital opportunities that FinTech firms offer.

“We’re trying to change that mentality to one that basically says, ‘Sending money is just like sending a WhatsApp message, you’re not doing anything more than that,’” Millar said.

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