Matthew: Craig you stated earlier that you joined the ADP Marketplace team a little over two years ago, do you remember how many applications were on the marketplace then and how many apps are there now?
Craig: When I started, I believe we had 70 apps on the marketplace, today we have over 400. We have another 85 integration partners and each partner could easily have two or three apps in the market. Our goal is to add another 125 apps totaling over 500 apps before we reach the end of our fiscal year (June 2020). After reaching that milestone, we expect to continue to grow about 150 each year.
Matthew: What does the process look like for an app company that wants to partner with ADP. More specifically what can you tell me about your review process to ensure accountants the quality of the data being transferred as well as the security protecting this sensitive information?
Craig: Yeah, that’s it. It’s a great question. A lot of people don’t ask me surprisingly. We probably average about 7-8 people per day who apply to our partner page. After signing an NDA, one of our business development representatives gets on a call with them to learn more about their value proposition in the B2B world, the number of connections they have with existing clients and most importantly their security protocols.
The process that each application must undergo before being approved is something we take very seriously. Due to the sensitive nature of the information being accessed, we require every company to complete a background check to ensure they are a proper organization that is licensed to do business in the United States. We also conduct a security review of the company’s API and the method in which data is accessed for any vulnerabilities. Finally, after an application has pass all other stages, we manage the connection for them when they go live.
This is where many companies stop their review process, but we believe that it is important to continue testing after they go live every year, and in some cases every quarter depending on the volume of their use.
Matthew: What percentage of the companies that begin the application process go live on your marketplace?
Craig: Application to live is less than 5% when we include the applications that do not make it out of the first stage of approvals. Once they get past that stage, our approval rate is usually in the high teens. We have some pretty big companies in the industry that have been going through the integration process for over two years and they still have not made it live yet.
We know that more partners that are available in our app marketplace translates to increased revenue, but security is something we are not willing to compromise on.
Matthew: Recently ADP announced their new tagline “Always Designing for People” what should we expect to see from the company soon?
Craig: As we briefly discussed earlier, we project that the ADP marketplace will continue to add around 150 new applications each year. This organic growth has allowed us to shift our focus to developing industry bundles around the needs of the business owners. Our goal is to help filter out some of the noise out there that causes confusion and uncertainty by promoting industry specific technology stacks.