Managing a global workforce is no longer reserved for multinational corporations.
With remote work, international hiring, and expanding global markets, businesses of all sizes now face the challenge of delivering payroll payments to employees in multiple countries.
But it’s not just businesses that encounter challenges. Payroll professionals continue to grapple with the complexity of international payroll operations. That’s why we recently teamed up with the GPA to deliver our annual Global Payroll Payments Report for 2025, identifying the challenges of delivering international payroll.
Let’s explore the report's top three insights and how businesses can streamline payments for a more seamless and compliant experience.
1) Delivering Payroll Globally is Now the Norm

Global payroll payments are the norm rather than the exception.
Our report found that 75% of respondents pay employees in up to 25 different countries, with some even managing payroll in over 150 territories. With that scale, the process is challenging to manage.
The difficulties our respondents encountered varied by region.
Each country's legislation dictates the “rules” of paying employees in respective markets. Tax compliance and labour laws, for example, were flagged as the key issues affecting European payments, while in other jurisdictions, managing currencies poses a more critical issue.
France, Italy, Germany, and Switzerland often top the polls with payroll complexity. So, it’s no surprise that most respondents highlighted Europe as having much more stringent laws for paying into the country and complying with tax regulations.
In LATAM countries, such as Argentina, Brazil, and Mexico, managing the respective currencies causes issues in Global Payroll processes.

Businesses may not be able to hold these currencies for payroll payments for many reasons. They might not have a local bank account – it is notoriously difficult to set up multiple accounts at scale – or the correct currency account with their existing bank. And making payments internationally consistently can be an expensive endeavour, with hidden fees and lost payments. All of which is inexcusable in a payroll setting.
So how can we manage the growing complexity of paying across borders?
Payroll professionals need reliable solutions to navigate this intricate landscape. Luckily, there are providers on the market that offer services on an international level. However, that’s where we find the next key insight of the report.
2) Companies are Using Too Many Providers to Make Payroll Payments
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While banks remain the most used payroll payment providers, they are often an expensive and inflexible option for international transactions.
Many payroll professionals are turning to specialised international payment providers that offer automation to prevent payment errors and cost savings by reducing currency conversion fees and little to no transfer fees.
Two-thirds of respondents to our report work with between two and ten different providers to fulfil their payroll payments. And a staggering 15% rely on more than eleven.
Obviously, with that breadth of support from providers, the flow of data and communications become ever more complex.
This fragmented approach not only creates operational inefficiencies but also increases the risk of errors, delays, and compliance issues. Problems like these can snowball quickly and directly impact the performance of employees and overall business.
Businesses need streamlined solutions that reduce the number of intermediaries, enhance security, and ensure timely and accurate employee payments worldwide.
By consolidating providers, businesses can gain greater control, efficiency, and accuracy over their global payroll operations. Particularly in an area we discovered was the next major area of interest.
3) Payroll Professionals Don’t Have the Data to Compare FX Rates

One of the most revealing insights from the report was that 66% of payroll professionals either don’t know or lack the data to compare FX rates and fees across providers.
Without visibility into hidden currency conversion costs and transfer fees, businesses may be overpaying for international payroll payments.
Without data to compare, how can you know what is the most cost-effective way to deliver international payroll? This may take some time, and manual work, to figure out, but it’s a necessary step to take.
Additionally, one in four payroll professionals said they encounter frequent or occasional foreign exchange (FX) miscalculations.
These inaccuracies will impact payroll efficiency, and a late or incorrect salary can damage employee trust. Not to mention potential legal issues due to compliance.
To get around these discrepancies (and potential compliance issues), payroll teams should be automating FX calculations through their providers. With automation, the risks of mistakes are minimised.
In an environment where accuracy and timeliness are paramount, a strategic, technology-driven FX approach can be the key to successful global payroll management.
So, What’s the Solution?
Optimising global payroll payments starts with streamlining operations and reducing inefficiencies. Consolidating payroll payments with fewer providers is the first step.
By working with a single provider, companies can reduce costs, simplify reconciliation, and make payments compliantly, all while eliminating the complexities that come with managing multiple intermediaries.
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.