Payroll cards gain popularity with millennial workforce; expected to post strong growth over the forecast period

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Young workers of the tech driven and connected world are increasingly looking for innovation in how they receive their wages. The latest disruption in the payroll world is pay card or payroll card which is kind of prepaid debit card loaded by employer with worker’s pay. They offer employer reduced administrative cost associated with handling and distribution of wages, and employees benefit from freedom with which they can manage their wages. The prepaid pay cards not only helps workers avoid check cashing fees charged at banks, but also offer greater benefits to the unbanked workforce who can use the card to make ATM withdrawals, make in-store payments or online purchases.

Especially in developed economies, pay cards have emerged as popular payment method for millennial workforce.  Due to growing distrust in banks and the ease this card offers, workers of all ages and income levels are embracing pay roll cards. In the past lower-wage workers with limited access to transportation constituted the unbanked population, however now many young workers are intentionally shunning bank accounts to choose unconventional banking options.

Payroll cards have been embraced by variety of industries, but this innovation presents a particular unique advantage in terms of reduced time and distribution cost for companies that operate through hundreds of locations with thousands of employees like restaurants and large retail companies.

PayNXT360 views with the changing demographics in the workforce who seek flexibility and convenience and a need for employers to reduce costs on delivering paper checks, the demand for payroll card is poised to increase in the evolving payment world.

To know more and gain deeper understanding of prepaid card industry in the world, click here.