XU: Can you tell us the story behind the inception of Buddy Payroll? What inspired the creation of a payroll company focused on people?

DS: Buddy Payroll was born out of a need for an integration between Xero and Deputy—two products we were offering through Sixteen Limited, my SAAS company in Malta. We noticed a significant gap in the market when it came to integrating these systems for seamless payroll processing. Despite reaching out to existing payroll providers in Malta, none were willing or able to offer the necessary APIs to connect Deputy with Xero.

This challenge led me to connect with Jonathan, our CTO, and together we saw an opportunity to create a product that could bridge this gap. As we brainstormed, we decided to start from a blank slate and reimagine the entire payroll process. It quickly became clear that at the heart of payroll is people—after all, payroll exists because of people, and even the payroll professionals themselves are people who rely on it for their own paychecks.

This realization inspired us to build a payroll system that puts people at the center of everything. By focusing on the human element, we aimed to create a solution that not only meets technical needs but also supports the real people behind every paycheck.

XU: What were some of the initial challenges you faced when starting Buddy Payroll, and how did you overcome them?

DS: Starting in Malta, one of our biggest challenges was navigating compliance. Maltese payroll laws are often vague, relying heavily on interpretation or the notion of 'that's how it's been done for the last 20 years.' This pushed us to build a robust compliance mechanism within Buddy, allowing us to accurately interpret legislation and translate it into our software. This approach led us to establish processes that go beyond the status quo, ensuring we dig deep into the legislation and our software ticks all the boxes for full compliance.

Another challenge was the lack of formal payroll qualifications in Malta, meaning that technically anyone could offer payroll services. This motivated us to create a user-friendly, yet powerful software that ensures compliant payslips, even for users with little to no payroll expertise. These challenges ultimately shaped Buddy into a highly reliable and accessible platform.

XU: In what ways does Buddy Payroll differ from traditional payroll software providers services?

DS: At Buddy, we started with a blank slate, free from the constraints of legacy systems. This allowed us to build Buddy Payroll from the ground up, specifically for the 21st century. Payroll has evolved significantly in recent years, and we recognized the need for a solution that addresses today’s unique challenges. Unlike traditional providers, whose systems often have cores built decades ago and have been retrofitted over time, Buddy was designed to meet the complex demands of modern payroll from day one. This approach ensures that our software is not just a patchwork of updates, but a cohesive, forward-thinking solution tailored to today’s needs.

One of the key ways Buddy stands out is by saving time through automation. We’ve built features that automate repetitive and low-value tasks like entering leave hours, managing allowances, and calculating holiday pay. These tasks, while essential, can be incredibly tedious—especially when you’re running on a tight deadline. In such situations, all you wish for is that everything goes smoothly and remains compliant, yet the burden on the payroller to manually handle these tasks can be overwhelming. By automating these processes, Buddy not only ensures compliance but also significantly reduces the stress and workload on payroll professionals, allowing them to focus on more strategic and valuable tasks.

XU: Can you elaborate on some of the innovative features that Buddy Payroll offers to enhance the payroll experience for businesses and their employees?

DS: At Buddy Payroll, we've developed a concept we call the Payroll Trinity, which we believe is essential for achieving accurate and efficient payroll processing. This trinity involves the payroll expert (bureau), the employer, and the employee—all three parties play a critical role in ensuring a successful payroll process.

To support this trinity, we’ve designed Buddy Payroll with features that facilitate seamless communication and collaboration between these three key players. For example, our platform includes real-time data sharing and collaborative tools that allow payroll experts, employers, and employees to easily exchange information, address queries, and ensure that everyone is on the same page throughout the payroll process.

XU: Who are the key members of the Buddy Payroll team, and what unique skills do they bring to the company?

DS: Buddy Payroll was co-founded by Jonathan and me, each bringing distinct perspectives to the table. Jonathan is our tech wizard, with extensive experience in building state-of-the-art cloud software. His expertise in mathematics and complex problem-solving makes him the ideal CTO for developing payroll software that is both innovative and reliable. I complement his technical prowess with my corporate experience, ensuring that our business strategy aligns with market needs and long-term growth.

Beyond the founding team, we have Jeremy, who leads our Customer Success Team. Jeremy ensures that our customers are not only well-served but also heard, providing critical feedback to the development team to continually refine our product based on real-world scenarios.

Mark heads our growth efforts in the UK market, leveraging his deep knowledge of payroll transformations. His expertise is instrumental in helping us expand our presence and reach new prospects in the UK.

XU: How do you ensure that your team remains motivated and aligned with the company's vision of making payroll about people?

DS: Our core values—Growth Mindset, Share the Knowledge, Carry Your Own Bag, Team First, and The Right Way—are the foundation of everything we do at Buddy. These values ensure that every team member is aligned with our mission and works towards our shared goals.

To maintain this alignment and foster a collaborative culture, we hold quarterly townhall meetings. These gatherings are an opportunity for the entire team to get up-to-date on the latest developments and direction of the company. More importantly, we create an open space where everyone is encouraged to share their ideas and opinions, ensuring that every voice is heard and that we collectively shape the future of Buddy.

XU: Can you share some insights into the company culture at Buddy Payroll? What makes your workplace special?

DS: At Buddy Payroll, our company culture is defined by a deep sense of collaboration, innovation, and mutual respect. What truly sets our workplace apart is the ownership each team member feels—not just over their tasks, but over the success of the company as a whole. We trust our team to take initiative, bring their unique ideas to the table, and challenge the status quo.

We’re also committed to fostering a learning environment. Whether through informal knowledge-sharing sessions or more structured professional development opportunities, we encourage continuous growth and support each other's learning journeys. This commitment to growth is what drives our ability to innovate and stay ahead in the industry.

Another aspect that makes our workplace special is our open communication and transparency. Everyone at Buddy Payroll has a voice, and we make it a point to listen. Whether it’s in our regular team meetings or just in day-to-day interactions, we value feedback and use it to improve, both as individuals and as a company.

Finally, what binds us together is our people-centric approach. We genuinely care about each other, our customers, and the impact our work has on the broader community. This shared purpose creates a supportive and motivating environment where everyone feels they’re contributing to something meaningful.

XU: We know you recently launched in the UK, what motivated this decision, and how has the response been so far?

DS: The decision to launch in the UK was driven by several factors, including the close ties between Malta and the UK, and the fact that English is our second language, making the UK a natural first choice for our expansion. However, we wanted to ensure that this move was strategic, so we took the time to thoroughly understand the UK market and its payroll landscape.

Our journey began in 2021, when we started diving into UK payroll legislation and speaking with payroll professionals to identify the challenges they face. We were encouraged to find that the UK's payroll legislation and structure are well-organized. However, we quickly noticed a gap in the market—most existing software providers were relying on legacy systems, and despite the buzz around cloud solutions, very few were actually leveraging true cloud infrastructure at the core of their software.

This realization confirmed that there was a significant opportunity for Buddy Payroll to bring a modern, cloud-native solution to the UK market. In our first few months, we've already begun conversations with a wide range of businesses, from small and medium enterprises to large Top 100 Accounting firms in the UK. The feedback we've received when their teams see and use our software has been empowering, to say the least. Helen Rodgers, Managing Director at Knutsford Admin Ltd, even remarked, "Me thinks Buddy - Making Payroll About People is about to be everyone’s favorite buddy :)." It’s clear that there’s a strong appetite for a more flexible, innovative approach to payroll, and we’re excited about the opportunities ahead.

XU: Were there any specific challenges or opportunities you encountered when entering the UK market?

DS: Entering the UK market definitely came with its set of challenges, but these also opened up exciting opportunities for us. One of the main hurdles was ensuring that Buddy Payroll could meet the unique expectations of the UK market, which is both mature and highly competitive. UK businesses have access to a wide range of payroll solutions, so we knew we had to bring something truly innovative and valuable to the table. Adapting our product to fully comply with UK-specific payroll regulations required careful attention to detail, as we wanted to ensure that our software was perfectly aligned with local requirements from day one.

The biggest challenge in payroll, however, is the critical importance of the function itself. Payroll is a cornerstone of any business, and a single wrong decision can have a significant impact on the entire company. People need to be absolutely sure of every move they make in payroll. This meant that providing strong assurances and developing a very robust product was key to our success. We focused heavily on creating a solution that businesses could trust implicitly, knowing that it would handle their payroll needs accurately and reliably.

However, this challenge also highlighted a significant opportunity. We quickly realized that many of the existing payroll solutions in the UK still rely on legacy technology, creating a clear demand for a modern, cloud-native alternative that offers greater flexibility and efficiency. This gap in the market allowed us to position Buddy Payroll as a forward-thinking solution designed for today’s businesses. One of our clients, after seeing our demo, remarked that they wished they had done it sooner, recognizing the immediate benefits of transitioning to a more streamlined and innovative payroll system.

Moreover, we’re constantly being approached by other tech providers in HR and accounting who are eager to integrate their services with our software. They see the value in offering payroll through Buddy to their clients, further validating our approach and expanding our reach in the market.

XU: Are there any new markets or regions you're planning to expand into next?

DS: The UK is going to be our primary focus market for the next couple of years as we have identified that there is quite a lot to do here. As for future markets, no specific plan yet but Ireland might end up being the next region.

XU: Can you give us a sneak peek into any upcoming features or services that Buddy Payroll is working on?

DS: At Buddy, we’re focused on adding real value to the payroll function, which has evolved beyond just processing end-of-month salaries. Payroll now impacts every individual in a company, and we recognize the need for more advanced tools to support this. We’re excited to be working on features that will incorporate genuine AI—not just marketing buzzwords, but AI that truly helps service providers and businesses gain deeper insights into their payroll data. These upcoming features will analyze underlying data and provide actionable insights, empowering decision-makers to make more informed choices and optimize their payroll processes.

XU: How do you see the payroll industry evolving over the next decade, and what role do you envision Buddy Payroll playing in that future?

DS: Payroll has been evolving steadily, and over the next decade, we see it becoming less of a monthly task and more of a constant, integral part of company operations. Employees are increasingly seeking more than just a paycheck; they want a system that offers flexibility and supports their overall well-being.

Buddy is well-positioned to embrace and lead these changes. From the start, we've placed people—not just employees—at the heart of everything we do. We envision a future where individuals have greater control over how they are rewarded for their contributions, allowing them to choose the forms of compensation that best support their lifestyles and goals.

Technology will be crucial in managing them in real-time. Buddy is prepared for this, as our focus has always been on leveraging advanced technology to simplify and enhance the payroll experience. As the industry shifts towards a more personalized and inclusive approach, Buddy will continue to innovate, ensuring that our solutions not only adapt to but also anticipate the complexities of the future.