Detailed Guide to Best Payment Initiation API for Payroll Tech Integration

If you’re building or scaling a payroll platform, you already know that paying people on time isn’t optional — it’s fundamental. Yet many HR and payroll systems still rely on outdated methods: uploading BACS files manually, triggering batch payments through bank portals, or waiting 2–3 days for settlements to land.

This is where a Payment Initiation API for Payroll can make a real difference.

By enabling direct account-to-account payments via Open Banking, Payment Initiation APIs allow payroll software to move money faster, more securely, and with far less manual effort. Instead of relying on traditional payment processors or complex batch setups, payroll tech teams can use APIs to trigger instant payouts — from employee salaries and freelance invoices to pension contributions and bonuses.

In this blog, we’ve reviewed five top providers offering a robust Payment Initiation API for Payroll use cases. Each platform offers tools designed to help you:

• Initiate payments in real time or on a schedule
• Support bulk disbursements across thousands of recipients
• Improve compliance and reduce reconciliation errors
• Maintain full control through developer-first integrations

Whether you’re supporting weekly wage runs or automating variable payouts for contractors, these APIs are built to keep payroll smooth, fast, and accurate.

Finexer

Running payroll shouldn’t involve spreadsheets, manual uploads, or delayed transfers. Whether you’re managing salaries for your team or powering payouts inside a payroll platform, Finexer offers a cleaner way to get it done.

With its Payment Initiation API for Payroll, Finexer lets you send account-to-account payments directly from verified employer accounts. That means no BACS files, no waiting days for settlement, and no need to log into multiple banking portals.

What makes it stand out is how quickly you can go live. Most teams are able to integrate in a few days, not weeks. You get access to 99% of UK banks, and the API is built to support recurring salary runs, one-off bonuses, or bulk contractor payouts — all through a single connection.

Finexer is FCA-authorised, offers full sandbox access, and uses a usage-based pricing model that works whether you’re paying 10 people or 10,000. There’s no setup fee, no monthly minimums, and no hidden costs to navigate.

Best for:
UK businesses, HR teams, and payroll platforms looking for a fast and reliable Payment Initiation API for Payroll

Key features:

• Real-time account-to-account salary payments
• Bulk disbursement support via API
• White-label options for branded payout flows
• Employer-side authentication
• Works with 99% of UK banks

Pricing:
Transparent and usage-based. You only pay for what you use.

Success Story: How Sysynkt Uses Finexer to Power Automated Payroll and Finance Operations

Sysynkt, a UK-based cloud accounting and finance automation platform, was looking for a payment partner that truly understood B2B needs. Most Open Banking providers they explored were built for consumers, not for platforms handling high-volume payroll, supplier invoices, and accounting integrations.

With Finexer, that changed.

Using Finexer’s Payment Initiation API for Payroll and business expenses, Sysynkt now enables direct account-to-account payments from employer accounts. The platform supports everything from scheduled salary runs to real-time contractor payouts, all embedded within a single finance interface.

Finexer also supports automated reconciliation using AIS, allowing Sysynkt’s clients to match payments with bank transactions directly inside their accounting software.

“We realised we had a lot in common with Finexer in how we approach services for our customers. This made it a highly collaborative partnership from the start.”
— Penny Phillips, Chief Commercial Officer, Sysynkt

The Finexer team worked closely with Sysynkt to build a flexible integration — one that scaled with their customers and fit complex B2B workflows. With usage-based pricing and a fast go-live process, Sysynkt was able to launch without overhead or lengthy development cycles.

Key outcomes:

• Bulk salary and expense disbursements via API
• Smooth bank reconciliation through AIS + PIS
• Fully embedded white-label flows
• Ongoing partnership focused on scalability and support

“Finexer is more than a provider — they’re a partner who aligns with our mission to deliver world-class services.”
— Penny Phillips, Sysynkt

Token.io

For payroll platforms operating across both the UK and EU, Token.io provides a stable infrastructure with broad regulatory support. It’s well-suited for larger fintechs and providers managing cross-border payouts or needing strong compliance controls in multiple markets.

While it supports Payment Initiation API for Payroll use cases, Token.io’s strengths lie more in regulatory readiness and bank connectivity across regions, rather than speed of deployment or startup accessibility. It’s better suited to enterprise or high-volume environments where internal compliance and international coverage are key considerations.

Token’s platform supports direct account-to-account payments and bulk disbursements, but businesses focused solely on the UK may find simpler, more cost-effective options elsewhere.

Best for:
Regulated fintechs and payroll platforms needing multi-country access and enterprise-level compliance

Key features:

• UK and EU bank connectivity
• Scalable API infrastructure for regulated firms
• Support for GBP and EUR disbursements
• PISP licensed in the UK and Europe
• Built for cross-border use cases

Pricing:
Custom quotes based on payment volume and regional setup

Modulr

Modulr has built a strong reputation among payroll and accounting software providers, particularly for those working with established systems like Sage and IRIS. While it isn’t a plug-and-play option for everyone, it does offer solid infrastructure for companies with more complex disbursement workflows.

Its Payment Initiation API for Payroll supports automated bulk payments, scheduled salary runs, and integration into broader finance systems. Modulr also provides access to its e-money account infrastructure, which can be useful for platforms building end-to-end financial services around payroll.

That said, Modulr typically works best for mid- to large-sized providers with dedicated development teams and longer onboarding timelines. It’s more infrastructure-focused than flexibility-focused, and businesses looking for fast deployment or simpler pricing may want to explore other options.

Best for:
Mature payroll platforms and larger businesses using Sage, IRIS, or other legacy finance systems

Key features:

• Bulk payment API support
• Integration with e-money accounts and partner platforms
• Embedded workflows for salary and expense disbursements
• FCA-authorised for UK payments
• Developer access and partner integrations

Pricing:
Requires commercial onboarding. Pricing is based on account setup, transaction volume, and platform usage.

Plaid

Plaid is a well-known open banking platform that offers payment initiation services across the UK and Europe. While it’s widely recognized for its data aggregation capabilities, Plaid also provides a Payment Initiation API for Payroll, suitable for businesses operating in multiple regions.​

Plaid’s API supports both domestic payments in GBP and international payments in EUR, making it a viable option for companies with cross-border payroll needs. However, for UK-centric businesses seeking rapid deployment and straightforward integration, there may be more tailored solutions available.​

Best for:
Businesses requiring multi-currency payroll solutions with operations in both the UK and Europe.​

Key features:

• Payment initiation across multiple currencies (GBP, EUR)
• Integration with various financial institutions across Europe
• Support for both single and recurring payments
• Comprehensive API documentation and developer support

Pricing:
Custom pricing based on usage and integration requirements.​

TrueLayer

TrueLayer is a prominent open banking platform offering Payment Initiation Services (PIS) across the UK and Europe. It’s particularly suitable for businesses seeking to integrate account-to-account payments into their payroll systems.​

TrueLayer’s API facilitates direct bank payments, enabling businesses to streamline payroll processes by initiating payments directly from their applications. This can enhance efficiency and reduce reliance on traditional banking methods.​

Best for:
Businesses operating in the UK and Europe looking to integrate direct bank payments into their payroll systems.​

Key features:

• Payment initiation across UK and European banks
• Developer-friendly API with comprehensive documentation
• Support for various payment types, including single and recurring payments
• Compliance with PSD2 regulations​

Pricing:
Custom pricing based on usage and integration requirements.​

Choosing the Right Payment Initiation API for Payroll

Payroll isn’t just about pushing payments — it’s about getting people paid accurately, on time, and with complete visibility. Whether you’re handling salaries for a small in-house team or managing thousands of payouts through a payroll platform, the infrastructure behind those transactions makes all the difference.

A modern Payment Initiation API for Payroll lets you automate salary runs, pay contractors in real time, and manage bulk disbursements without relying on outdated processes or third-party portals.

Here’s a quick recap of the providers featured:

• Finexer is the go-to choice for UK businesses and payroll platforms needing fast integration, usage-based pricing, and full control over domestic salary flows.
• Token.io fits regulated fintechs operating across the UK and EU, especially those needing high compliance and scalable infrastructure.
• Modulr works well for enterprise setups tied to Sage, IRIS, or complex finance ecosystems.
• Plaid supports multi-currency disbursements for international teams, with strong bank connectivity across GBP and EUR.
• TrueLayer is a solid option for platforms needing secure UK and European bank payments with clean developer tools and PSD2 compliance.

The right provider depends on your region, development resources, and integration goals — but for UK-based teams looking to get started quickly and scale confidently, Finexer continues to stand out.