Visa USA today announced a five-year agreement with ADP Employer Services, a division of Automatic Data Processing, Inc. (NYSE: ADP), to offer Visa-branded payroll cards to its clients.
The agreement reflects the two industry leaders' commitment to grow prepaid card solutions that offer convenience and cost savings for businesses and their employees. The Visa branded ADP Total Pay card is issued by a number of Visa member financial institutions.
The agreement extends an existing relationship between Visa and ADP. Under the agreement, ADP will continue to market Visa-branded payroll card to its clients. ADP Employer Services pays 1-in-6 U.S. workers and serves more than 550,000 clients worldwide.
The Visa-branded ADP TotalPay card gives employers added flexibility in providing payroll options to their employees. By offering payroll cards, employers can create a paperless payroll solution and deliver the option of electronic payroll to those who may not have a traditional banking relationship.
Thousands of employers - from midsized businesses to national corporations - currently offer Visa-branded payroll cards as a way to help meet the diverse needs of their work force. According to Visa estimates, approximately 80 million people in the U.S. - roughly a quarter of the nation's population - lack a bank account or access to a payment card. This audience receives approximately $1 trillion in annual income and relies heavily on cash for everyday transactions. The Visa-branded payroll card offers employees a safer and more convenient alternative to paper paychecks.
"The workplace represents an important distribution channel for Visa prepaid products, especially products such as the Visa Payroll card, which help to address the needs of those consumers living a cash-and-carry lifestyle," said Nizam Antoo, vice president, prepaid products, Visa USA. "Visa's alliance with ADP enables us to continue to expand the prepaid category while giving our merchant and member partners more opportunity to benefit from Visa prepaid products."
According to the American Payroll Association, four million paychecks are lost or stolen annually. For employers, the Visa-branded ADP TotalPay card helps increase processing efficiency and savings while providing added flexibility and, in many cases, savings to their employees.
"Today's employers require a variety of payroll processing solutions to support a diverse work force," said Laurie Eldridge, Senior Division Vice President and General Manager of ADP Tax and Financial Services. "Our agreement with Visa extends our services and creates a solution that has broad acceptance and robust functionality."