Payroll cards, onto which companies load workers' wages,are growing by leaps and bounds. Their popularity is being drivenby the savings the cards afford employers and the growing number ofemployees without bank accounts. But the cards have also become atarget for state legislators and regulators over the last year.
“We're moving into a climate of tighter regulation of payrollcards,” said Patricia Smith, a partner at the law firm BallardSpahr.
That could spark concerns for many companies nationwide.According to Aite Group, $34 billion was loaded onto 4.6 millionpayroll cards in 2012, up from $20.9 billion loaded onto 3.1million cards in 2010. Aite's analysts predict the use of payrollcards will grow at a compound annual rate of 19.9% through 2017,when they project that there will be 10.1 million paycards in use,with $68.9 billion loaded onto those cards annually.
Continue Reading for Free
Register and gain access to:
- Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
- Informative weekly newsletter featuring news, analysis, real-world cas studies, and other critical content
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
*May exclude premium content
Already have an account?
Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Susan Kelly
Susan Kelly is a business journalist who has written for Treasury & Risk, FierceCFO, Global Finance, Financial Week, Bridge News and The Bond Buyer.
