What happened: The US payroll provider Gusto embarked on the embedded finance journey in June 2021 when it announced the launch of Gusto Embedded. With Gusto Embedded, companies can embed payroll functionalities within their product and streamline the workflows for their business customers. In this The Paypers article, Gusto Embedded General Manager Yi Liu shares their views on the embedded finance opportunity and how Gusto has approached their decision to launch Gusto Embedded.
My comment: The article covers a few general points on embedded finance. My favorite part was the example of their customer CleanCloud, a software provider for dry cleaners and laundries. The company has to manage unique wage calculations, such as employees being paid by the pounds of laundry they fold. No payroll provider has a solution for this, and it is unlikely any provider will have one as the market size is limited. With Gusto Embedded, however, CleanCloud can build this independently on top of the existing payroll infrastructure. Their customers can replace their previous payroll provider with a unique industry solution.
