Payroll Card Use Growing Rapidly
by Barbara Hurst, BOL Guru
Results of a study by Mercator Advisory Group show just how fast payroll cards are grabbing the nation's attention and how much potential there is for more growth. The group released a study recently that showed that in 2003, $11 billion in payroll payments and $4 billion in benefit payments were loaded onto cards.
The cards replace paper paychecks and checks for commissions and incentives. Payment is loaded onto stored value cards that can usually be refueled by the company providing the pay or commissions. They can then be used to withdraw cash at automated teller machines or make purchases at point-of-sale terminals.
Mercator also said that the cards are growing at more than 11 percent per year and that if such cards replaced checks issued to 130 million employees who lack bank accounts, are temporary employees or work at remote locations, the market would be $109.8 billion.
Copyright © 2004 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 14, No. 5, 7/04
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