Every working person in the world gets paid, but in most countries, they’re either using antiquated payroll software or paid in cash. Both of these point to the lack of innovation in payroll infrastructure to help software companies deliver effective, high-quality products.
In this Q&A, we sit down with Simon Bourgeois, Co-founder and CEO of Nmbr, to explore the evolving landscape of payroll infrastructure in Canada after experiencing an innovation lag for many years, and why he believes embedded finance is the catalyst for change to ignite progress.
What inspired you to start Nmbr and focus on embedded payroll solutions for the Canadian market?
SB: With my background in finance, I’ve seen the different tides of innovation in the industry come and go, all while the payroll vertical remained relatively stagnant. I became more interested in addressing this gap during my time at my previous startup, which primarily focused on HR solutions. Looking at the success of U.S.-based Check, which we recognize as a pioneer in embedded payroll, our team wanted to push the boundaries on how we could enable businesses, beyond the employer perspective, to offer great experiences for their team and products for their customers.
How does Nmbr’s embedded payroll infrastructure address the innovation lag in traditional payroll systems?
SB: Nmbr’s API allows new entrants and existing payroll software alike to automate tasks like tax calculations, regulatory compliance, and funding flows into their offerings. By simplifying the most complex aspects of building a payroll product, we enable software developers to focus on innovation. In some cases that is embedding payroll within a platform where payroll has never lived before, but probably should, or in other cases that means allowing companies to rethink the customer experience entirely.
This is in contrast to where traditionally payroll had been offered through standalone software. With its fragmented nature and disconnect from the organization’s people management system, that often leads to inefficiencies and errors, which Nmbr’s approach solves for.
Can you explain the potential impact of embedded finance on the payroll sector and why you believe it’s the future?
SB: The future of payroll lies in embedded solutions because they meet the growing demand for user-friendly, comprehensive tools while creating new opportunities for software providers. These systems empower software developers to bring payroll into systems that already store the necessary data that employers otherwise need to export to run payroll. Exporting that data is not only cumbersome but error prone. As companies increasingly prioritize digital transformation, embedded payroll will become an essential component of modern workforce management, benefiting both businesses and their employees.
What unique challenges does the Canadian market present for payroll innovation, and how is Nmbr tackling them?
SB: The Canadian market presents several unique challenges for payroll innovation, and we’re energized to be leading the cause to address these gaps. Below are some of our main observations at Nmbr and how we’re actively presenting solutions.
- Regulatory complexity: Canada has complex payroll regulations that vary by province and territory. Nmbr tackles this by providing a precision tax engine that ensures compliance across all jurisdictions, allowing businesses to navigate the regulatory landscape with confidence.
- Fragmented payroll market: Many Canadian businesses still use outdated or manual payroll processes. Nmbr addresses this by offering a modern, API-driven solution that can be easily integrated into existing software platforms, enabling more businesses to access advanced payroll functionality.
- Demand for customization: Canadian businesses often require payroll solutions tailored to their specific industries or needs. Nmbr’s approach of providing both pre-built components and options for custom UI/UX allows software providers to create unique, industry-specific payroll experiences for their customers.
With your recent $7.6 million CAD seed funding, what are Nmbr’s plans for growth and expansion in the near future?
SB: In the near future, our primary focus will be strengthening our commitment to the Canadian market, with the goal of powering roughly half of all payroll products in Canada by the end of next year. We plan to achieve this by continuing to invest in building robust infrastructure and developing top-tier products that are tailored to our customers’ needs.
We’re working on some exciting developments behind the scenes that we can’t wait to share. Our focus remains on creating the best possible payroll product, and these upcoming enhancements will bring valuable new benefits to businesses across Canada.
While we stay committed to revolutionizing payroll in Canada, this capital will propel us to explore broader market opportunities beyond Canada, setting the stage for future international expansion.
Learn more and stay updated with what we’re up to at www.nmbr.co.
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