Why payroll data access is inevitable on your product roadmap
copy gray iconlinkedin graytwitter grey

Why payroll data access is inevitable on your product roadmap

October 20, 2021
“There are only two ways to make money in business: One is to bundle; the other is unbundle.” — Jim Barksdale (former CEO, Netscape)

Those who have been working in or observing fintech are well acclimated with this famous quote. But for those who don’t live and breathe fintech, you might wonder what this all means.  

Most industry pundits have observed that the early days of fintech involved the emergence of tech-native companies that each focused on “unbundling” a very specific aspect of the financial services stack (e.g., investing, lending, payments, etc.) and delivering them in innovative new ways to their customers. Consider these examples of fintechs and their initial wedge products:

  • Investing: Betterment (robo investing)
  • Payments: Square Cash App (wallet / P2P payments)
  • Banking: Chime (digital bank / savings account)
  • Lending: Affirm (buy now pay later)

This approach was different from what end users would normally see from a traditional financial institution which usually offered a full stack of financial products to their customers. Additionally, this wave has been fueled by massive growth in venture investment – with investments in fintech companies growing more than 9x since 2010 and more than doubling since 2015.  

But as the fintech ecosystem has matured, what we’re seeing more of now is these same companies are now shifting to “re-bundling” adjacent financial services into their products.

  • Betterment: Savings account and debit cards
  • Square Cash App: Savings account, debit cards, equities and cryptocurrency trading
  • Chime: Early wage access, P2P payments, and credit cards
  • Affirm: Savings account and cryptocurrency trading

What is abundantly clear is that the lines between fintech verticals are blurring rapidly as these companies mature and seek to expand their addressable market with new products.  

What are the implications around payroll data?

If you’re a fintech founder or product leader, you’re likely thinking through how you’ll embark on your own “re-bundling” journey. At Pinwheel, we believe that many of your choices will benefit from leveraging payroll data, sometimes in ways that are only obvious in hindsight.  

Take a simple example of cryptocurrency exchanges. Amidst the recent crypto booms, these exchanges have been on their own rebundling journey with many of them looking more like next generation neobanks that happen to have crypto on-ramps.  

As a result, we are starting to see these companies connect to payroll data to enable direct deposit switching for their consumers which is a familiar playbook for non-crypto native neobanks.  It would not be a stretch to imagine a scenario where a crypto exchange also starts offering early wage access as a feature for their users to quickly capitalize on crypto asset volatility.  

Another example might be around wealth management. Today, these fintechs provide consumers ways to build wealth and improve their financial health.  Payroll data could provide them with unique insight into their user’s payroll taxes and deductions and help unlock opportunities for them to deliver new tax optimization recommendations.  

While it’s hard to predict all the potential use cases, we believe that the possibilities to innovate around payroll data are limitless.  

So what?

With all this in mind, it’s our point of view that if you’re already thinking of a payroll data use case that is relevant to your product, it is unlikely to be the last one you’ll benefit from.  

Additionally, if you don’t see how payroll data access can benefit your product, we would also argue that it’ll likely come into play as you shift from “unbundling” to “re-bundling.” For example, thinking back a few years ago it might have been hard to imagine why a speculative crypto trading platform might consider neobank-like features.  

This is why at Pinwheel, we’ve been laser focused on providing the richest set of payroll data APIs to power a range of fintech use cases. We understand that in addition to providing easy to implement capabilities, having feature breadth benefits our customers as they explore “re-bundling” other products and services from banking, lending, early wage access, and more.  

For more information or to learn more about how our APIs can help power your use cases, reach out to our team here — we look forward to hearing from you!

Always stay up to date

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
View our Privacy Policy   ➔

Up next

How alternative credit data can benefit lenders

How alternative credit data can benefit lenders

Read more  ➔
Tech Spotlight: Implementing your first feature flag

Tech Spotlight: Implementing your first feature flag

Read more  ➔
Pinwheel Welcomes New Advisor, Ethan Yeh, to Advance Pinwheel’s Data Science Strategy

Pinwheel Welcomes New Advisor, Ethan Yeh, to Advance Pinwheel’s Data Science Strategy

Read more  ➔
Tech spotlight: Securing access control across internal services

Tech spotlight: Securing access control across internal services

Read more  ➔
The anatomy and potential of payroll data: Transforming complex data into insights

The anatomy and potential of payroll data: Transforming complex data into insights

Read more  ➔
Beyond the credit score: Propelling consumer finance into the future with income data

Beyond the credit score: Propelling consumer finance into the future with income data

Read more  ➔
Ayokunle (Ayo) Omojola joins Pinwheel’s Board of Directors

Ayokunle (Ayo) Omojola joins Pinwheel’s Board of Directors

Read more  ➔
Conquering conversion: Engineering practices developed to help customers

Conquering conversion: Engineering practices developed to help customers

Read more  ➔
Driving Customer Delight: From implementation and beyond

Driving Customer Delight: From implementation and beyond

Read more  ➔
Pinwheel Supports Open Finance Data Security Standard

Pinwheel Supports Open Finance Data Security Standard

Read more  ➔
How we design Pinwheel to solve real customer problems

How we design Pinwheel to solve real customer problems

Read more  ➔
What is consumer-permissioned data and what are its benefits?

What is consumer-permissioned data and what are its benefits?

Read more  ➔
How payroll data connectivity can help financial service providers in tumultuous market conditions

How payroll data connectivity can help financial service providers in tumultuous market conditions

Read more  ➔
Pinwheel now supports document uploads to supplement payroll data

Pinwheel now supports document uploads to supplement payroll data

Read more  ➔
Brian Karimi-Pashaki joins Pinwheel as Partnerships Lead

Brian Karimi-Pashaki joins Pinwheel as Partnerships Lead

Read more  ➔
Optimizing for conversion with smarter employer mappings

Optimizing for conversion with smarter employer mappings

Read more  ➔
What are super apps and how will they impact financial services?

What are super apps and how will they impact financial services?

Read more  ➔
Increase conversions and maximize share of wallet with Pinwheel's new UX update

Increase conversions and maximize share of wallet with Pinwheel's new UX update

Read more  ➔
Pinwheel announces support for taxes

Pinwheel announces support for taxes

Read more  ➔
Ryan Nier Joins Pinwheel as the Company’s first General Counsel

Ryan Nier Joins Pinwheel as the Company’s first General Counsel

Read more  ➔
The future of enabling earned wage access

The future of enabling earned wage access

Read more  ➔
Deliver earned wage access faster with Pinwheel Earnings Stream

Deliver earned wage access faster with Pinwheel Earnings Stream

Pinwheel Earnings Stream provides the necessary data and intelligence to reliably offer earned wage access (EWA) at scale.

Read more  ➔
Digital transformation in banking in 2022: What it means, trends & examples

Digital transformation in banking in 2022: What it means, trends & examples

Read more  ➔
June product release: Expanded connectivity to employers, a custom experience with Link API and more

June product release: Expanded connectivity to employers, a custom experience with Link API and more

Read more  ➔
Pinwheelie Spotlight: LaRena Iocco, Software Engineer

Pinwheelie Spotlight: LaRena Iocco, Software Engineer

Read more  ➔
Build fully custom experiences with Pinwheel’s Link API

Build fully custom experiences with Pinwheel’s Link API

Read more  ➔
Pinwheel expands connectivity to 1.5M employers

Pinwheel expands connectivity to 1.5M employers

Read more  ➔
Robert Reynolds joins Pinwheel as Head of Product

Robert Reynolds joins Pinwheel as Head of Product

Read more  ➔
Pinwheel obtains highest security certification in the industry

Pinwheel obtains highest security certification in the industry

Read more  ➔
Lauren Crossett becomes Pinwheel’s first Chief Revenue Officer

Lauren Crossett becomes Pinwheel’s first Chief Revenue Officer

Read more  ➔
Everything you should know about the role of APIs in banking

Everything you should know about the role of APIs in banking

Read more  ➔
Open finance: What is it and how does it impact financial services?

Open finance: What is it and how does it impact financial services?

Read more  ➔
How automated direct deposit switching benefits traditional banks

How automated direct deposit switching benefits traditional banks

Read more  ➔
Pinwheel Secure: Authentication optimized for market-leading conversion

Pinwheel Secure: Authentication optimized for market-leading conversion

Read more  ➔
Pinwheelie Spotlight: Elena Churilova, Software Engineer, Integrations

Pinwheelie Spotlight: Elena Churilova, Software Engineer, Integrations

Read more  ➔
May product release: Localization and downloadable pay stubs

May product release: Localization and downloadable pay stubs

Read more  ➔
How a payroll API can level up lenders and renters

How a payroll API can level up lenders and renters

Read more  ➔
The power of payroll APIs in consumer finance

The power of payroll APIs in consumer finance

Read more  ➔
Data Talks: Pinwheel’s Fortune 1000 coverage and top employer trends

Data Talks: Pinwheel’s Fortune 1000 coverage and top employer trends

Read more  ➔
April product release: Enabling connectivity to time and attendance data for 25M US workers

April product release: Enabling connectivity to time and attendance data for 25M US workers

Read more  ➔
Tech spotlight: Increasing engineering momentum at a systems level

Tech spotlight: Increasing engineering momentum at a systems level

Read more  ➔
How crypto exchanges can turn direct deposits into a fiat onramp

How crypto exchanges can turn direct deposits into a fiat onramp

Read more  ➔
March product release: Time and attendance coverage and Pinwheel's new online home

March product release: Time and attendance coverage and Pinwheel's new online home

Read more  ➔
Pinwheelie spotlight: Arianna Gelwicks, Tech Recruiting

Pinwheelie spotlight: Arianna Gelwicks, Tech Recruiting

Read more  ➔
What is payroll data and how it benefits proptech companies

What is payroll data and how it benefits proptech companies

Read more  ➔
Earned wage access: What is it and why does it matter?

Earned wage access: What is it and why does it matter?

Read more  ➔
How fintech APIs are transforming financial services

How fintech APIs are transforming financial services

Read more  ➔
Webinar: Unleash growth with income and payroll APIs

Webinar: Unleash growth with income and payroll APIs

Read more  ➔
February product release: Updated Link UX and data quality

February product release: Updated Link UX and data quality

Read more  ➔
Why a direct deposit switching API is a must-have for banks and neobanks

Why a direct deposit switching API is a must-have for banks and neobanks

Read more  ➔
Tech spotlight: Floating footer with React functional components

Tech spotlight: Floating footer with React functional components

Read more  ➔
Pinwheelie spotlight: Hale Ahangi, People Operations Lead

Pinwheelie spotlight: Hale Ahangi, People Operations Lead

Read more  ➔
Shift from a vicious to virtuous cycle: The foundation for a fairer financial system

Shift from a vicious to virtuous cycle: The foundation for a fairer financial system

Read more  ➔
January product release: Recurring access to income & employment

January product release: Recurring access to income & employment

Read more  ➔
Pinwheel’s Series B and our path towards a fairer financial future

Pinwheel’s Series B and our path towards a fairer financial future

We're excited to share that we have raised a $50M Series B funding round led by GGV Capital with participation from many others.

Read more  ➔
Pinwheelie spotlight: Devin DeCaro-Brown, Product Manager

Pinwheelie spotlight: Devin DeCaro-Brown, Product Manager

Read more  ➔
Tech spotlight: How to implement async requests in your Python code

Tech spotlight: How to implement async requests in your Python code

Read more  ➔
2021 recap and product update: An amazing year for Pinwheel

2021 recap and product update: An amazing year for Pinwheel

Read more  ➔
Charles Tsang joins Pinwheel as Head of Marketing

Charles Tsang joins Pinwheel as Head of Marketing

Read more  ➔
Pinwheelie spotlight: Octavio Roscioli, Senior Software Engineer

Pinwheelie spotlight: Octavio Roscioli, Senior Software Engineer

Read more  ➔
November product release: Beta launch of income & employment monitoring

November product release: Beta launch of income & employment monitoring

Read more  ➔
How can payroll data help with one’s financial picture?

How can payroll data help with one’s financial picture?

Read more  ➔
Pinwheelie spotlight: Caroline Lo, Software Engineer

Pinwheelie spotlight: Caroline Lo, Software Engineer

Read more  ➔
2021 company onsite: Bringing Pinwheelies together

2021 company onsite: Bringing Pinwheelies together

Read more  ➔
October product release: Beta launch of direct deposit allocation monitoring

October product release: Beta launch of direct deposit allocation monitoring

Read more  ➔
Why payroll data access is inevitable on your product roadmap

Why payroll data access is inevitable on your product roadmap

Read more  ➔
Security spotlight: SOC 2 compliance

Security spotlight: SOC 2 compliance

Read more  ➔
Jeff Hudesman joins Pinwheel as Chief Information Security Officer

Jeff Hudesman joins Pinwheel as Chief Information Security Officer

Read more  ➔
Welcoming John Whitfield, VP of Engineering

Welcoming John Whitfield, VP of Engineering

Read more  ➔
Announcing Pinwheel’s FCRA Compliance

Announcing Pinwheel’s FCRA Compliance

Read more  ➔
Pinwheel's statement on Section 1033

Pinwheel's statement on Section 1033

Read more  ➔
Pinwheel raises $20M Series A

Pinwheel raises $20M Series A

Read more  ➔
If I were a fintech founder

If I were a fintech founder

Read more  ➔
Pinwheelie spotlight: Phil Jen, Director of Product

Pinwheelie spotlight: Phil Jen, Director of Product

Read more  ➔
Celebrating women's history month with Sasha Pilch

Celebrating women's history month with Sasha Pilch

Read more  ➔
Tech spotlight: How we re-launched our API docs

Tech spotlight: How we re-launched our API docs

Read more  ➔
Why I chose Pinwheel: Payroll APIs as the next frontier

Why I chose Pinwheel: Payroll APIs as the next frontier

Read more  ➔
Lunch and learn with Nik Milanović

Lunch and learn with Nik Milanović

Read more  ➔
Pinwheelie spotlight: David Daudelin, Senior Front End Engineer

Pinwheelie spotlight: David Daudelin, Senior Front End Engineer

Read more  ➔
The missing link

The missing link

Read more  ➔
Introducing Pinwheel, the API for payroll

Introducing Pinwheel, the API for payroll

Read more  ➔