PaySpace, a prominent leader in payroll technology across Africa and the Middle East, has officially rebranded as Deel Local Payroll, powered by PaySpace, following its acquisition by the global payroll giant Deel in 2024. The acquisition deal was reportedly valued at around $100 million, marking a significant milestone for both companies.
This rebranding represents more than just a change in name; it signifies Deel’s strategic initiative to consolidate its payroll operations and expand into new markets by leveraging PaySpace’s robust technological infrastructure and regional expertise. Under the new branding, PaySpace’s platform, now integrated into Deel’s global ecosystem, continues to deliver the powerful payroll solutions it is known for, while also offering enhanced flexibility and a broader global reach.
Deel, a unicorn valued at over $12 billion, has been at the forefront of simplifying global payroll and HR management for businesses operating across various jurisdictions. With operations in over 150 countries, Deel enables companies to manage their employees seamlessly while ensuring compliance with local financial and legal regulations. Since its inception in 2018, Deel has emerged as the fastest-growing unicorn, providing businesses with the capability to hire talent from anywhere in the world.
The acquisition of PaySpace, which serves over 15,000 clients including renowned global brands such as Heineken, Coca-Cola, and Puma, aligns with Deel’s broader ambition to strengthen its presence in the payroll technology sector, particularly in Africa and the Middle East. PaySpace’s comprehensive payroll platform, which has been operational for over 20 years, is now a central component of Deel’s payroll offerings, forming the backbone of Deel Local Payroll’s capabilities.
The completion of the acquisition in 2024 has resulted in an integrated product offering that combines PaySpace’s local expertise with Deel’s extensive global infrastructure. For Deel, PaySpace’s advanced payroll engine and established customer base across 44 countries provide a significant advantage, especially as it seeks to expand its reach in emerging markets where payroll complexities can pose major challenges for businesses.
Transition to Deel Local Payroll
Now operating as Deel Local Payroll, powered by PaySpace, the platform continues to provide flexible payroll solutions that cater to a diverse range of clients, from small businesses to large enterprises and payroll service providers. The PaySpace calculation engine now supports Deel’s Employer of Record (EOR) and Global Payroll (GP) products, enabling real-time payroll processing, expedited Gross-to-Net (G2N) calculations, and reduced payroll processing times across various regions.
Bruce van Wyk, CEO of Deel Local Payroll, expressed the company’s vision, stating;
We set out to create world-class payroll management that serves all markets, drawing inspiration from our African customers and leveraging the latest cloud technologies. The rebranding to Deel Local Payroll allows us to integrate more deeply with Deel’s global platform, positioning us for continued success and growth. This move builds on the strong foundation we’ve already established.
For existing customers of both Deel and PaySpace, the rebranding will not result in immediate changes to service or support. Deel Local Payroll will continue to offer the same cloud-native payroll platform and a dedicated team of experts, ensuring that existing contracts, systems, and processes remain unaffected.
The PaySpace platform, now fully integrated with Deel’s payroll services, offers a suite of features designed to streamline payroll processes for businesses. These features include automatic legislative updates, seamless integration with a wide array of business applications, and extensive automation tools aimed at minimizing manual intervention in payroll calculations. The platform is also recognized for its scalability, allowing it to adapt to the diverse and evolving needs of businesses at various stages of growth.
One of PaySpace’s standout features, Pacey, a WhatsApp-based employee self-service bot, continues to empower employees by providing easy access to payroll slips and other payroll-related information. The platform’s security, flexibility, and user-friendliness have garnered significant attention from businesses in the African and Middle Eastern markets.
Deel’s Strategic Expansion Plans
With the acquisition of PaySpace, Deel aims to continue expanding its product offerings, focusing on localized payroll solutions while maintaining the global flexibility that its customers require. Deel Local Payroll is positioned as an independent subsidiary, offering a self-service payroll product alongside Deel’s more comprehensive global payroll solution. This dual approach ensures that businesses can select the level of service that best fits their needs while benefiting from the innovative tools developed by PaySpace.
As Deel Local Payroll continues to localize payroll services in key markets, including the UK, South Africa, Canada, and the UAE, the company plans to integrate its advanced payroll engine into Deel’s broader global payroll ecosystem. This strategic move positions Deel as a major player in the payroll industry, with a unique competitive offering that combines local expertise with global scalability.
Deel’s acquisition of PaySpace also serves as a testament to the resilience and innovation present in the African tech ecosystem. By acquiring a well-established African company, Deel demonstrates its confidence in the region’s ability to deliver world-class solutions that meet the needs of businesses on a global scale.
The integration of PaySpace into Deel’s global platform is expected to drive further innovation in payroll and HR technology, benefiting both businesses and employees. As Deel continues to expand its global footprint, the collaboration between Deel and PaySpace is poised to play a pivotal role in shaping the future of payroll management worldwide.
