Modulr & HiBob integrate payments to streamline payroll

Payments automation provider Modulr has partnered with HR, payroll and finance software group HiBob to connect Modulr's payments tools directly to HiBob's payroll workflow.

The tie-up focuses on payroll execution and aims to remove steps that often sit outside payroll systems, such as exporting payment files, using bank portals, and reconciling outcomes across multiple platforms.

Payroll remains a high-pressure process for many finance and payroll teams because payment runs follow fixed schedules with little tolerance for error. Manual processes can also create inconsistencies in approvals and tracking, particularly when teams use separate systems for payroll calculation and payment execution.

Modulr and HiBob cited research suggesting up to 25% of UK employees experience payroll errors, including incorrect amounts, late payments, or issues with tax-related transfers. They said these mistakes can undermine employee confidence in an employer's processes.

Embedded payments

Under the partnership, HiBob embeds Modulr's payments automation into its payroll workflow. Once a payroll run is approved in HiBob, salary and HMRC payments are executed through Modulr's platform.

The integration is positioned as a single end-to-end process from approval to pay day, with more control for finance teams through automated execution and clearer visibility into payment status.

In payroll operations, these controls typically relate to governance and audit requirements, including separation of duties, documented approvals, and confirmation that payments were released as intended. Removing manual hand-offs may also reduce errors introduced during file creation or data transfer.

Operational impact

The partnership aims to reduce the time payroll teams spend on pay day administration and reconciliation. Manual steps can require repeated checks across systems, particularly when a payment fails or a bank requires additional input. An integrated process can centralise those checks and reduce the number of tools involved.

Modulr and HiBob also described the integration as a route to improved payroll accuracy. Automation reduces reliance on manual file handling and lowers the risk of incorrect uploads or version-control problems, which often increase as payroll volumes grow.

Scalability was another theme in the announcement. The firms described an integrated workflow as better suited to companies expanding their workforce, adding locations, or increasing payroll frequency. In practice, this often requires repeatable processes and consistent controls across business units.

Modulr is a regulated payments provider and says it processes more than 200 million transactions and more than £180 billion in payment value on an annualised basis, with more than 6,000 businesses using its services.

HiBob sells its Bob platform to mid-sized and multinational organisations and says it has more than 4,400 customers, including Uala, DWF, Fiverr, The&Partnership, and VaynerMedia.

Company comments

Modulr said the partnership reflects its focus on embedding payments into business workflows close to core finance processes.

"Partnering with HiBob allows us to bring payments automation into a critical workflow for finance and payroll teams, reducing friction and increasing accuracy and reliability. This partnership reflects our focus on solving high-impact payment challenges for scaling businesses," said Melek Pirgon, chief product officer at Modulr.

HiBob described pay day execution as a key element of trust between employers and employees, particularly when payroll operations are distributed across teams and systems.

"Pay day is one of those make-or-break moments for employer-employee trust, so having the right payments infrastructure in place that ensures seamless payroll experiences should be non-negotiable. Our partnership with Modulr brings a true end-to-end HR, payroll and finance experience to our customers that is easy to use and build on as they scale. Customers shared that they are spending significantly less time on pay day tasks, while more employees are paid accurately and on time," said Bobby Chadha.

The integrated payroll and payments workflow is available to HiBob customers as part of the partnership, with an emphasis on reducing manual work associated with salary and HMRC payments.