Source: PrePay Technologies
The days of companies paying employees cash-in-hand or by cheque could soon be over thanks to a new electronic prepaid payroll card launched today by PrePay Technologies, the market leader in stored value card solutions, in conjunction with Avantra, the commercial managed service division of Link.
The Enterprise Payroll card is a simple, cost effective and efficient alternative solution to cash or cheques for transferring funds to banked, un-banked and short term contract employees. The card provides employers with the convenience and flexibility of streamlining their payroll via a safe and secure, electronic card-based solution, without the need for the employee to have a bank account. Employees can also withdraw cash at any ATM exhibiting the Maestro logo and can actively manage their accounts via the Internet and telephone.
The card has been developed by PrePay Technologies in consultation with its existing clients and various payroll agencies and can also be used to make expense payments, issue benefits or rewards.
Chris Reddish, Head of prepaid cards for MasterCard Europe, said: "Today's launch demonstrates the value of prepaid cards to employers as a means of eliminating paper cheques and paying their entire workforce electronically by MasterCard or ATM debit card. Besides helping firms to drive down the costs associated with handling cash and cheques, this will make their payment processing easier, faster and cheaper. They can also use the card in other innovative ways to issue benefits or make other payments."
Philippe Dufour, CEO at PrePay Technologies stated: "I have met too many payroll & HR directors and managers who have struggled with the idea of streamlining their payroll payments. The prepaid Enterprise payroll card will put an end to this payroll chaos. The payroll card offers substantial advantages to both employers and employees."
Employers will be able to offer a much lower cost of payment compared to cash or cheques and have the ability to bundle this with an incentive programme and differentiate the offering for individual employees. Benefits for employees include the potential reduction in cheque encashment costs, make electronic payments on the high street and access ATMs without the need to have a bank account or a creditt history.
Steve Smith, Managing Director of Avantra, added: "The launch of the banking industry's Faster Payments service in late 2007 will give employers the flexibility and convenience to make payroll payments that will reach the recipient's bank account in near real-time, 24 hours a day, seven days a week, rather than the current processing cycle of days. With payroll files processed in this way, the PrePay Technologies payroll card will enable cardholders to access their wages almost instantly without having to wait for a cheque or bank credit to clear - and enable employers to pay unbanked staff as if they had bank accounts. We are now working with PrePay Technologies and employers to bring innovative prepaid payroll card solutions to market."
PrePay Technologies recently issued its 10 millionth prepaid card under its various prepaid programmes. This was described by the firm as being "just the tip of the iceberg."