The Next Generation
of Payroll:
Why Electronic Payments Must
Focus on End-User Needs
Tim Henderson
Sr. Director, Product Strategy, ADP, Inc.
Linda Papillion
Sr. Director, Payroll, HR Operations,
Compensation & Benefits,
Pacific Sunwear of California, Inc.
April 21, 2015
Employer Benefits
of Paycard Solution
Cost savings
on Mailing checks
Time savings
in creating administrative efficiencies. No need to track
outstanding checks or to manage escheatment rules.
Provides greater ability
to meet immediate pay requirements
for terminations.
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Mobilization
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Manage Balances and Transactions
Any Time and Any Where
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Multi-Generational
Workforce
Why ALINE Cardholders Signed Up
No bank account
Referral
43%
13%
Wanted a Visa card
Switched from other prepaid
27%
10%
Other
27%
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What’s Most Important to
ALINE Cardholders
Visa acceptance
Immediate availability of pay
93%
92%
24x7 online balance check
ATM access
90%
89%
Can pay bills using the card
Customer service
86%
86%
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What Do Employees Have to Say?
Payroll cardholders
prefer card payments
vs. check
Used payroll cards
to pay for some
purchases
Would continue to
use payroll card if
they changed jobs
88%
92%
84%
Their payroll card
saves them time vs.
having to cash a check
Their payroll card
helps track their money
better than cash
89%
86%
Source: Results based on an inline survey by Ipsos as a commissioned agent of Visa, among First Data Money Network active cardholders. The purpose of this Visa-commissioned study was to
understand cardholder satisfaction with their Payroll Card. Fieldwork was completed in December 2013 and was based on an online survey among a representative sample of Money Network active
payroll cardholders. A total of 800 surveys were completed. The cardholders were required to have had any activity (i.e., loaded money, made a purchase, withdrawal) in the past 60 days on their payroll
card. Please refer to Appendix for additional detail.
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What More Do ALINE Cardholders Want
65%
64%
Loyalty
program
Enhanced
bill pay
Mobile
check deposit
Personal financial
management
57%
50%
49%
35%
Family card
(separate purse)
Multiple cards
(single purse)
72%
Mobile
wallet
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64%
International
Money transfer
Regulatory Security
and Privacy
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Consumerization
ADP Is Leveraging New Technologies to
Deliver the Next Generation of Payroll Solutions
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Cloud Technology at Work
ERP Platform Instant Funding
Process Flow With APIs
WAGE PAYMENTS
FUNDING PROCESS
VISA
REAL-TIME
WEBSERVICES
INTEGRATION
TIPS DATA
PAY EMPLOYEE VIA
ALINE CARD
REALTIME API’s
STORE 1 POS
STORE 2 POS
ADP MARKETPLACE
INSTANT
FUNDING API
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SMARTCOMPLIANCE
PORTAL
PAY EMPLOYEE VIA
ALINE CARD
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Pay
• Interactive Pay Lens delivers the
intuitive, elegant experience that
users demand
• Easy navigation with plain
language
• Actionable and contextual
Cost-Effective for Employers
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Questions
Thank You
Linda’s Slides
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SCP
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Linda/Tim Slides
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Employee/Cardholder Research
2013 Employee Claims Research
Objectives
Results
• Reinforce the value of payroll cards with a specific focus on the benefits
to employees to overcome the numerous product misperceptions that continue
to exist.
• To understand cardholder satisfaction with their Payroll card and to generate
substantiated content and proof points which can be used to showcase the
positive benefits of the card.
• Substantiated claims that showcase positive payroll card benefits for employees.
Source: Results based on an inline survey by Ipsos as a commissioned agent of Visa, among First Data Money Network active cardholders. The purpose of this Visa-commissioned study was to
understand cardholder satisfaction with their Payroll Card. Fieldwork was completed in December 2013 and was based on an online survey among a representative sample of Money Network active
payroll cardholders. A total of 800 surveys were completed. The cardholders were required to have had any activity (i.e., loaded money, made a purchase, withdrawal) in the past 60 days on their payroll
card. Please refer to Appendix for additional detail.
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Employee/Cardholder Research
2013 Product Enhancement Research
In an effort to address what triggers the use of payroll cards as a plastic
check, we wanted to understand:
Objectives
• Perceptions of payroll cards— capabilities and limitations
• POS use of the payroll card—what is driving usage and what are the barriers/hurdles
that must be overcome
• Preferred method of payment at POS
• The ideal combination of features and benefits that will drive POS usage of a payroll card
Offering a payroll card with the desired features and benefits would drive
greater POS use
Results
• Active users are likely to make more POS purchases, on average, at least 10 more
• A rewards program (points, miles or cash back) is the most desired additional benefit to the
payroll card that would drive more POS usage
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Linda’s Slides
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Paper Checks Vs. Payroll Cards
Annual average cost incurred by employees who use payroll cards
$83
vs.
$256
Average cost of using
check cashing and
money order services
Amount many employees who
use payroll cards pay in fees
$0
Payroll cards can be
used like a paycheck
and cashed for free2
vs.
$273
Average cost of a basic
checking account1
The Federal Reserve noted that payroll
cards are the most cost-effective
transaction accounts available
80%
Less expensive
than check
cashing services3
1. “2010 Report on Check Casher and Basic Banking Fees.” Massachusetts Division of Banks. 2010. http://www.mass.gov/ocabr/docs/checkcashreport2010.pdf
2. M. Flores, “Analysis of Network Branded Pay Cards: Comparative Analysis of Pay Cards to Other Payment Options.” Bretton Woods, Inc. 2011. http://bretton-woods.com/media/51f57d9869e66aa1ffff8159ffffd502.pdf
3. Wilshusen, R. Hunt, J. van Opstal, and R. Schneider, “Consumers’ Use of Prepaid Cards: A Transaction-Based Analysis.” FRB of Philadelphia Payment Cards Center. 2012. http://www.philadelphiafred.org/consumer-creditand-payments/payment-cards-center/publications/discussion-papers/2012/D-2012-August-Prepaid.pdf
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Paper Checks
Americans without
bank accounts pay
Employees pay
up to
$8B
3%
each
year
At check cashing outlets, payday
lenders and bill pay centers1
To cash their payroll checks
with a check cashier2
Someone earning
$26K
a year would spend approximately…
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$750
in check-cashing and money order fees
to pay their bills2
1. M. Fellowes, M. Mabanta. “Banking on Wealth: America’s New Retail Banking Infrastructure and Its Wealth-Building Potential.” Brooking Institution. 2008.
http://www.brookings.edu/~/media/research/files/reports/2008//1/banking%20fellowes/01_banking_fellowes.pdf
2. “2010 Report on Check Casher and Basic Banking Fees.” Massachusetts Division of Banks. 2010. http://www.mass.gov/ocabr/docs/checkcashreport2010.pdf
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