The HR tech space has grown far beyond timesheets and payroll runs. Today’s HR platforms are expected to help businesses manage global teams, gig workers, contractors, and vendor relationships—offering everything from onboarding and benefits to compliance and analytics. But even the most sophisticated platforms often overlook one of the biggest friction points in the employer experience: how money moves.
Paying contractors. Reimbursing vendors. Managing worker payouts. These aren’t just backend tasks—they’re make-or-break moments for business operations. And in a landscape where instant gratification is the new normal, delayed disbursements and limited financial tools can quietly undermine user satisfaction.
For HR platforms and tech providers, this pain point represents a powerful opportunity. By embedding payment solutions such as real-time disbursements, virtual cards, and SMB credit card programs, platforms can deepen customer value, unlock new revenue streams, and stand out in a competitive market.
The case for embedded finance in HR tech
While HR platforms have digitized many aspects of workforce management, payment flows often remain outdated. Business customers—especially small and midsize employers—still face challenges such as:
- Manual invoice processing for vendor relationships – From recruiting firms to benefits providers, vendor payments often require clunky, manual processes that slow down operations, increase errors, and strain partner relationships.
- Limited access to working capital for recurring expenses – Many small and midsize businesses struggle with cash flow gaps that make it difficult to cover essentials like onboarding tools, software subscriptions, or HR services—especially between funding rounds or during seasonal lulls.
- Delays in paying 1099 contractors or temp workers – These workers often expect payment immediately after completing a task, but traditional payroll systems aren’t designed for on-demand payouts—leading to frustration and churn.
These aren’t just operational issues. They’re sources of frustration that reduce platform loyalty and limit growth. These days, businesses are looking to simplify and consolidate their tech stack.
HR tech platforms have a unique opportunity to solve these problems by embedding financial tools directly into their workflows—transforming from operational software into financial enablers.
1. Real-time payouts via digital banking cards
One of the most immediate ways platforms can drive value is by offering faster payout capabilities—especially for platforms working with flexible or contractor-based workforces.
Using a branded digital banking card issued by the HR platform, businesses can send earnings to contractors, freelancers, or vendors faster, rather than waiting on batch payroll or third-party processors.
Why it works:
- Helps business customers maintain better relationships with their workers
- Reduces the time and cost of manual payouts
- Provides HR platforms with an opportunity to offer a branded, value-added financial product
Marqeta’s role: Through Just-in-Time (JIT) Funding and its open API platform, Marqeta enables HR tech companies to issue their own cards and facilitate fast access to earnings—with greater control over spend rules, branding, and funding workflows.
2. SMB credit cards to expand platform utility
Access to capital is one of the biggest challenges facing small and midsize businesses. HR tech platforms are in a prime position to solve that pain point.
By launching a branded SMB credit card, platforms can offer their business customers access to an unsecured revolving line of credit that can be used for operational expenses—such as recruiting tools, background checks, and onboarding software.
Why it works:
- Adds value to the platform by helping business users manage spend more effectively
- Can support new revenue opportunities through card-based activity (e.g., interchange)
- Deepens customer engagement by embedding financial tools into the platform experience
Marqeta’s role: Marqeta enables HR tech providers to launch SMB credit card programs with customizable underwriting, usage controls, and branding.
3. Virtual cards for vendor and supplier payments
Beyond paying workers, many HR platforms support transactions with third-party vendors: benefits providers, recruiting agencies, compliance consultants, and more. These payments are often handled manually, which may cause delays and administrative headaches.
With virtual card capabilities, HR platforms can automate vendor payments and set customizable controls around how, when, and where funds are used—all while improving security and reconciliation.
Why it works:
- Simplifies vendor disbursements and expense tracking in one platform
- Helps to reduce fraud risk with single-use or restricted cards that limit the exposure of sensitive data
- Define granular spend controls that help ensure adherence to corporate spending policies
Marqeta’s role: Marqeta powers real-time virtual card issuance with custom spend controls, ideal for contractor payouts or vendor management.
How to embed payments the right way
Making the leap into embedded finance doesn’t require becoming a bank—but it does require a thoughtful approach. Here’s how HR tech platforms can start:
1. Identify customer pain points.
Where are business users struggling to move money efficiently? Are contractor payments a bottleneck? Is vendor management still manual?
2. Choose the right infrastructure partner.
Work with a provider like Marqeta that offers real-time funding, card issuing, and credit programs via a modern API stack.
3. Embed payments into the platform experience.
Don’t treat financial tools as add-ons. Build them directly into user workflows—such as dashboards, payroll modules, or contractor portals.
4. Monetize strategically.
Earn revenue through card interchange, transaction fees, or premium financial features, while delivering real value to customers.
The future of HR tech is financially embedded
HR platforms are more than just workforce tools—they're becoming central operating systems for how modern businesses run. By embedding real-time payouts, credit programs, and payment automation, HR tech companies can move beyond utility and into strategic partnership territory.
The result?
- More loyalty from business customers
- New recurring revenue streams
- A competitive edge in a crowded, fast-moving market
Ready to explore embedded finance for your HR tech platform? Learn more about how Marqeta can help.
