Travel Platform HRS Buys German Expense Management Firm Paypense

Corporate travel platform HRS has acquired German expense management firm Paypense, a move the company said will enhance its suite of corporate payment products.

“Only two years since launch, Paypense’s open platform has already made inroads with a broad range of corporations, enabling employees to use digital payment technology to pay for all work-related purchases,” HRS said in a news release Thursday (Aug. 4).

The release adds that the Paypense solution ensures budget compliance while capturing data for auditing, steering and sustainability metrics.

See also: Travel Platform HRS Launches Citi Partnership

HRS CEO Tobias Ragge said that this acquisition follows the company’s purchase last year of Itelya. He said that by buying Paysense, HRS could focus on improving employee satisfaction.

“Paypense provides intelligent spend management services for managers and employees alike, whether they are on the road for weeks at a time or supporting a one-day, off-site event that doesn’t require travel,” Ragge said.

Following the acquisition – set to formally close this month – Paypense’s staff will become HRS employees. Christopher Hecht, founder and CEO of Paypense, will take on the role of chief product officer for HRS.

“It’s clear from our industry engagement that there is an appreciation for our approach,” Hecht said. “We’re working in concert with expense providers and financial institutions, not competing with them as we transition from expense management to spend management.”

Read more: Decentralized Workforces Require Specialized Spend Management Solutions

As PYMNTS noted recently, spend management solutions have become increasingly important for businesses hoping to control cash flow thanks to the rise of decentralized workforces.

This was a trend initially sparked by the pandemic, with companies hiring workers from disparate locations and existing staff moving to new locations.

“Now organizations are trying to figure out, ‘How do I manage all that?’” Emburse CEO Eric Friedrichsen said in an interview with PYMNTS.

Among the obstacles facing companies are figuring out how to ensure they’re in compliance, managing spending in the right way and negotiating with suppliers. These companies also need to offer a user-friendly experience for employees spending money on behalf of their employer from their home offices.