Novo Integrates Gusto to Offer Embedded Payroll for Small Businesses

On June 6, 2023, Novo announced an integration with payroll provider Gusto, creating an embedded payroll solution within its small business banking platform. The partnership enables Novo's customers to manage both banking and payroll services through a combined experience, reducing the need to switch between multiple financial tools. Gusto contributes its established payroll processing capabilities, while Novo provides the underlying banking infrastructure and SMB-focused user experience.

The integration is designed to streamline financial operations for small businesses by connecting cash management directly with payroll functions. No financial terms of the partnership were disclosed. The move positions Novo as a more comprehensive financial platform for small businesses, competing with other SMB-focused neobanks that are expanding into adjacent services.

The integration exemplifies how embedded finance partnerships allow banking platforms to offer payroll, lending, and other services without building them in-house.