Palenca is a payroll API provider focused on Latin America, enabling businesses to access and verify employment records for workers across the region. Palenca acts as an infrastructure layer for employment data—similar to what Plaid does for banking, Palenca does for payroll—making it possible for workers to securely share their employment and payroll records, and for companies to leverage this data for a variety of use cases.
Unicorns like Kavak and Lalamove use Palenca to run background checks and deliver financial services tailored to Latin American markets. By providing a standardized API, Palenca simplifies the process for businesses to access verified employment data, which is traditionally fragmented and difficult to obtain across Brazil, Mexico, and other LatAm countries.
The Technology That Enabled Palenca
Palenca's core technology is its payroll API, which connects to various payroll and HR systems throughout Latin America. This integration allows:
- Workers to consent to share their employment and payroll data securely
- Businesses to streamline processes like onboarding, credit checks, and financial product eligibility
- Financial institutions and platforms to build new services on top of verified employment information
This approach addresses a significant pain point in the region, where employment verification is often manual and time-consuming, hampering access to financial services for millions of workers.
Who Uses Palenca?
Palenca primarily serves B2B clients operating in Latin America, including fintechs, lenders, gig economy platforms, and HR tech companies. Notable clients include:
- Kavak (automotive marketplace)
- Lalamove (on-demand logistics)
These organizations use Palenca to automate background checks, verify worker income, and offer new financial products such as loans or insurance to their users.
Who Are Palenca's Competitors?
Palenca operates within the payroll API and employment data infrastructure niche for Latin America. Key companies in the broader competitive landscape include:
- SmartFastPay: Offers a comprehensive payment API for Latin America, focusing on payment solutions rather than employment data.
- PayU Latam: Provides payment processing APIs for the region, with a focus on transactions rather than payroll verification.
- Ontop: Specializes in payroll compliance and payment for international teams in LatAm, addressing payroll execution and compliance rather than employment data access.
- Depay: Focuses on payments infrastructure in LatAm with API docs for integrating payment solutions.
- Thomson Reuters LATAM Import API: Offers APIs for trade and import data, not directly focused on payroll or employment records.
While several companies offer payment APIs or payroll compliance tools, Palenca differentiates itself by focusing specifically on employment and payroll data accessibility through a developer-friendly API for the Latin American market.
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