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What is last mile payment?

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Last mile payment refers to the final step of the payment process, where the funds are actually delivered to the recipient. In payroll, that often means the salary or wage after the taxes have been deducted.

Examples of last mile payment forms in payroll include:

  • Payroll cards
  • Debit
  • Check
  • Cash

Challenges with last mile payments in global payroll

Challenges with last mile payments are especially apparent while managing global payroll. Some common difficulties include:

  • Currency exchange rates and fees: the sum paid to the employee needs to be made in the currency relevant to where she’s living. That process of conversion can be both complex and costly.
  • Time zone differences: last mile payments have to reach the employee’s hands in time to meet payroll requirements. Time zone differences can complicate these delivery calculations.
  • Local regulations and data and security rules: regulations and data security laws regarding payroll differ from country to country. The last mile payment stage has to be in compliance with each country’s demands.

Creating a smoother last mile payment process

There are lots of things companies can do to smooth out the last mile payment process. That includes standardizing and monitoring the payroll payments process, training and regularly communicating with employees, and relying on technology to ease the chances of human error or security breaches.

A payroll distribution platform, for example, can automate the processes and ensure compliance with laws and regulations across the board, while keeping security in check and human error at bay. It can also ease the currency conversion process and meet different payment method requirements.

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