ADP® Embedded Payroll Gives Partners a Competitive Edge with Integrated HCM Solution
Rhea-AI Summary
ADP (NYSE:ADP) has launched ADP® Embedded Payroll, a new solution enabling SMB software providers to integrate comprehensive payroll functionality into their platforms. The solution features a flagship partnership with Fiserv's Clover, a leading point-of-sale system, to streamline business operations for small businesses.
The platform offers complete payroll processing, payments, and tax compliance capabilities, supported by ADP's 75+ years of experience. Key features include enterprise-grade APIs, pre-built user journeys, dedicated service teams, and comprehensive technical support. The solution aims to help software providers enhance their value proposition while allowing small businesses to manage payroll directly within their daily operational platforms.
Positive
- Strategic partnership with Fiserv's Clover platform expands market reach
- New revenue stream opportunity for software providers through integrated payroll solutions
- Potential for increased client retention through enhanced platform functionality
- 24/7 omni-channel service support backed by ADP's 75+ years of experience
Negative
- None.
Insights
ADP's new Embedded Payroll offering creates significant cross-sell opportunities and recurring revenue potential through software integration partnerships.
ADP has strategically expanded its SMB market reach with the launch of ADP® Embedded Payroll, allowing software providers to integrate ADP's payroll capabilities directly into their platforms. The flagship partnership with Fiserv's Clover point-of-sale system represents a smart distribution channel expansion, giving ADP access to thousands of small businesses without traditional sales costs.
This embedded approach addresses a critical pain point for small businesses – the inefficiency of switching between disparate software systems – while simultaneously creating a defensive competitive moat. Once integrated into partner platforms, ADP's payroll services become significantly stickier, potentially reducing churn and extending customer lifetime value.
The embedded finance model transforms ADP's growth dynamics in two key ways: (1) it creates new revenue streams from software partners who can monetize payroll as a value-added service, and (2) it enables land-and-expand opportunities where basic payroll integration can lead to upselling additional HCM solutions.
For ADP, this represents a shift toward more scalable, technology-driven growth versus traditional sales-driven acquisition. By leveraging partners' existing customer relationships and delivering a seamless integration experience, ADP can potentially accelerate SMB market penetration while maintaining lower customer acquisition costs.
The flexible implementation options – from APIs to white-labeled UI components – indicate a well-considered product strategy that can accommodate various partner technical capabilities, speeding time-to-market and adoption.
- Flagship Partnership with Fiserv: Collaboration with Clover to ease operational friction and empower small businesses to move faster, operate smarter and grow with confidence
- Complete Integration: Enables SMB software providers to launch integrated payroll solutions tailored to their clients' needs with support for payroll processing, payments and tax compliance
- Seamless Experience: Streamlines operations by bringing payroll directly into platforms business owners already use daily, helping to save time and catch common payroll mistakes
- Flexible Implementation: Provides flexible integration pathways – from developer-friendly APIs to ready-to-deploy UIs – that accelerate time-to-market
Download ADP's Embedded Payroll Product Information, Including Partner Benefits
Matt Farwell, president of Small Business, Retirement and Insurance Services for ADP, says: "Small businesses spend countless hours toggling between standalone payroll tools and their core business software. ADP Embedded Payroll eliminates this friction by bringing payroll directly into the platforms business owners already use daily, saving time and helping to reduce errors."
ADP's technology, scale and more than 75 years of experience serving small businesses stands behind ADP Embedded Payroll, enabling SaaS providers to unlock new revenue streams and seamlessly integrate payroll functions, creating a one-stop shop for their customers. ADP's omni-channel, consistent and reliable service is available to clients 24/7. With ADP's go-to-market support, partners gain access to digital or sales-assisted purchase and implementation expertise.
"ADP Embedded Payroll is good for our partners and their customers," adds Anand Pandya, vice president and general manager of ADP Embedded Payroll. "By integrating payroll and other HCM functions into their software, providers can support a broader set of SMB's needs, improve the overall value proposition of their solution and increase client retention, all with a tailored user experience that boosts their brand."
"In today's rapidly evolving economy, small businesses are increasingly reliant on technology to streamline their operations and exceed customer expectations," said Will Karczewski, Head of Clover at Fiserv. "By partnering with industry leaders like ADP, we are able to enhance the Clover platform and deliver a powerful, comprehensive payroll solution to help small businesses be more efficient in paying their employees."
Solution Components
ADP Embedded Payroll delivers:
- Enterprise-grade APIs for secure, real-time data exchange between partner systems and ADP
- Easy-to-use interface that guides clients to easily perform payroll tasks
- Pre-built user journeys that enable partners to launch a payroll solution quickly, using white-labeled components of ADP's industry-leading product, RUN Powered by ADP®
- Dedicated service teams providing expert support to end-customers
- Comprehensive technical support throughout integration and beyond
- Go-to-market support with sales tools and training from ADP's award-winning sales team
To learn more, visit ADP.com/EmbeddedPayroll.
About ADP (NASDAQ: ADP)
ADP has been shaping the world of work with innovation and expertise for more than 75 years. As a global leader in HR and payroll solutions, ADP continuously works to solve business challenges for our clients and their workers, from simple, easy-to-use tools for small businesses to fully integrated platforms for global enterprises — and everything in between. Always Designing for People means we're focused on just that – people. We use our unmatched AI-driven insights and proven expertise to design innovative solutions that help people achieve greater success at work. More than 1.1 million clients across 140+ countries rely on ADP's exceptional service to support their people and drive their business forward. HR, Talent, Time Management, Benefits, Compliance, and Payroll. Learn more at ADP.com.
ADP, the ADP logo, RUN Powered by ADP® and Always Designing for People, are trademarks of ADP, Inc. All other marks are the property of their respective owners.
Copyright © 2025 ADP, Inc. All rights reserved.
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SOURCE ADP, Inc.
FAQ
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