ADP and Kronos unveil blockchain payroll product strategies

Global payroll and HR services vendor ADP is developing a blockchain-based payroll system, while Kronos is “actively evaluating” the technology for payroll and other HR applications.

They believe blockchain's prospects in areas like cybersecurity, identity verification and automated, secure transactions make it suitable for moving money around the world to pay employees.

Tashina Charagi, ADP’s vice president of corporate strategy, said: "As far as blockchain applications and payroll, one of the first things that comes out is...not only faster cross-border payments but less expensive and less error-prone cross-border payments."

She added that the company also sees the technology’s potential to make same-day payments for the growing ranks of contingent and gig economy workers who would like to be paid in real-time and avoid payday lenders.

"Workers and their employers are now trying to have more flexible payments," she said. "To do that on blockchain technology is something that should gain traction in the payroll world."

As for human capital (HCM) and workforce management software provider Kronos, its vice president and general manager of the firm’s Workforce Ready group, Bob DelPonte, said in a statement that it also views blockchain as potentially useful for paying gig economy workers.

"Blockchain presents an exciting opportunity to help organisations simplify and accelerate vital HR activities," he explained. "This could range from the identity verification process during hiring, where new hires upload personal documents like their bank account or tax information to the blockchain, to the blockchain-based distribution of wages to employees without bank accounts."

But Brent Skinner, principal analyst for HCM at Nucleus Research, told TechTarget that he was sceptical of big vendors’ ability to bring a blockchain payroll system to market quickly. To back up his point, he noted that both ADP and Kronos have been late in moving their systems to the cloud.

"Payroll is the epicentre of HCM. And blockchain technology in HCM is in its infancy," he said.

But a few start-ups are already selling blockchain-based payments software. Bitwage, for example, moves money around using bitcoin before converting it into the local currency to pay workers, at what the company claims is a lower cost than moving it about conventionally. Bitwage also uses blockchain to verify gig economy workers' credentials and work histories.

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

Global payroll and HR services vendor ADP is developing a blockchain-based payroll system, while Kronos is “actively evaluating” the technology for payroll and other HR applications.

They believe blockchain's prospects in areas like cybersecurity, identity verification and automated, secure transactions make it suitable for moving money around the world to pay employees.

Tashina Charagi, ADP’s vice president of corporate strategy, said: "As far as blockchain applications and payroll, one of the first things that comes out is...not only faster cross-border payments but less expensive and less error-prone cross-border payments."

She added that the company also sees the technology’s potential to make same-day payments for the growing ranks of contingent and gig economy workers who would like to be paid in real-time and avoid payday lenders.

"Workers and their employers are now trying to have more flexible payments," she said. "To do that on blockchain technology is something that should gain traction in the payroll world."

As for human capital (HCM) and workforce management software provider Kronos, its vice president and general manager of the firm’s Workforce Ready group, Bob DelPonte, said in a statement that it also views blockchain as potentially useful for paying gig economy workers.

"Blockchain presents an exciting opportunity to help organisations simplify and accelerate vital HR activities," he explained. "This could range from the identity verification process during hiring, where new hires upload personal documents like their bank account or tax information to the blockchain, to the blockchain-based distribution of wages to employees without bank accounts."

But Brent Skinner, principal analyst for HCM at Nucleus Research, told TechTarget that he was sceptical of big vendors’ ability to bring a blockchain payroll system to market quickly. To back up his point, he noted that both ADP and Kronos have been late in moving their systems to the cloud.

"Payroll is the epicentre of HCM. And blockchain technology in HCM is in its infancy," he said.

But a few start-ups are already selling blockchain-based payments software. Bitwage, for example, moves money around using bitcoin before converting it into the local currency to pay workers, at what the company claims is a lower cost than moving it about conventionally. Bitwage also uses blockchain to verify gig economy workers' credentials and work histories.

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.