Modern pay methods cut costs and support employee needs
This article was provided by Mastercard.
In today's rapidly changing economy, attracting and retaining top talent requires more than just competitive salaries. Successful organizations are searching out innovative solutions that address employees' financial well-being, while also streamlining payroll and other business processes.
By transitioning from outdated payment methods like cheques to modern prepaid solutions, payroll departments can improve efficiency, reduce costs, and enhance employee satisfaction.
"In today's fast-paced economy, speed and access are paramount and prepaid cards can support employers on both fronts,” says Craig Reiff, Senior Vice President of Core Payments with Mastercard in Canada. “Prepaid cards provide a seamless and efficient way to move money, empowering both individuals and businesses to thrive."
Here are three ways prepaid is changing payments.
The hidden cost of paper cheques
While seemingly simple, paper cheques are expensive and outdated. For businesses, processing cheques is an administrative burden, from printing and distribution to reconciliation and fraud prevention. This manual process is time-consuming and prone to errors.
Paper cheques can also be a barrier for workers. Not everyone has easy access to banks for depositing cheques, creating further delays and potential fees for your employees to simply cash the cheque.
Prepaid payroll cards can offer a streamlined solution, eliminating the need for paper cheques and associated administrative headaches.
Instant access to earnings
We’ve seen a dramatic shift in how people work, and that is changing how they expect to be paid. One example is the gig economy where the traditional 9-5 workday simply doesn’t exist, and the idea of waiting for a predetermined payday has also become a thing of the past.
In this case, particularly in the ride share space, prepaid cards have proven to be an extremely popular option. At the end of each shift, drivers can have their earnings loaded directly onto their prepaid card, giving them instant access to their money. This eliminates delays, reduces financial stress, and empowers employees with greater control over their earnings.
"Workplaces have changed and because of this we can’t expect everyone to be content with traditional payment structures,” says Reiff. "Prepaid cards empower workers with instant access to their earnings, putting them in control of their finances and eliminating the anxieties of traditional payday cycles.”
Ending the expense of expenses
Managing employee expenses often involves a mountain of paperwork. Employees submit receipts, fill out expense reports, and wait for reimbursements. Payroll departments spend countless hours reviewing, approving, and processing these requests. This manual system is not only time-consuming but also prone to errors and potential fraud.
By providing employees with prepaid cards for specific expenses, companies can significantly reduce paperwork and processing time. Transactions are tracked electronically, eliminating the need for physical receipts and manual reconciliation. This not only simplifies expense management but also empowers employees with greater control and transparency over their spending.
The power of prepaid
Transitioning from traditional forms of payments like cheques to prepaid cards requires a strategic approach focused on education and highlighting the benefits for both employees and payroll departments.
The future of payroll is digital, and prepaid cards are leading the way.
Learn more about the value that prepaid cards can bring here.
