Ryan FowlerA new study from CloudPay has highlighted a significant readiness gap in payroll technology, with almost two-thirds of global businesses lacking the resources or expertise to adopt APIs across their end-to-end pay processes.
Despite widespread recognition that APIs are essential for automation, integration and real-time data flow, 64% of enterprise firms and 58% of midsize companies say they are not yet in a position to implement them.
CloudPay’s Future Readiness Report, released to coincide with the opening day of Workday Rising in Barcelona, shows that budget constraints are the most commonly cited barrier, followed by legacy systems and a lack of integration skills.
The company warns that disconnected systems are driving inefficiencies and exposing payroll teams to compliance failures, manual errors and rising operational costs.
Timo Weber, chief strategy officer at CloudPay, said: “We all know that APIs are critical for modern, efficient and error-free payroll operations.
“But this low level of readiness represents more than just a missed opportunity for operational efficiency, it exposes organisations to heightened risks of non-compliance, critical payroll errors, and costly manual interventions.”
The report notes that while budget limitations are often blamed for delays, the long-term financial impact of poor system integration can far outweigh the cost of upfront investment.
Businesses that continue to operate with fragmented systems face recurring inefficiencies and error-correction costs that compound over time.
CloudPay says API adoption should be viewed as a strategic priority for any organisation seeking to modernise payroll and reduce operational risk.
The findings follow CloudPay’s announcement that it has secured full certification across all five of Workday’s Global Payroll Connect features.
The certification covers 110 countries and supports real-time data synchronisation, greater visibility and faster payroll cycles for multinational organisations.
The company says the Future Readiness Report reinforces the need for a unified global payroll experience as teams grapple with rising compliance demands and tighter deadlines.
Timo added: “Payroll professionals are under more pressure than ever, juggling rising compliance demands, tighter deadlines, and shrinking budgets, yet many still don’t have access to the tools they need to succeed.
“Our research shows that while automation and AI are gaining traction, APIs – the technology that connects everything – are being overlooked.
“With so few firms at the point of readiness to adopt APIs, teams are left managing fragmented systems that increase the risk of errors and inefficiencies.
“We understand the financial constraints many organisations face, but the long-term cost of poor integration is far greater.”
CloudPay also revealed plans to launch a new Global Dashboard in 2026, powered by agentic AI, which will combine all data sources across payroll, payments and HCM to give customers greater control and visibility.
