The global payroll cards market was valued at almost USD 94 billion in 2016 and is expected to reach almost USD 166 billion by 2021.
Procurement market intelligence analysts have announced its latest market research report on payroll cards for the period 2017-2021. This market analysis discusses the major drivers and key emerging trends that will influence the growth of the payroll cards market during the forecast period. Some of the top vendors listed in this industry analysis include ADP, MasterCard, Visa, American Express, and Global Cash Card.
In terms of geographical analysis, the Americas is the largest shareholder in the global market, with a market share of around 55%. The US was the key revenue generating country in this region by accounting for almost 45% of the market in the Americas.
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According to Angad Singh, a procurement specialist at Technavio for research on category spend intelligence, “The use of payroll cards is currently experiencing an upsurge. This is fueled by the rise in its use for online shopping and payments, especially among the youth. Besides, the adoption of payroll cards has also enabled cardholders to manage money better and spend less as they are not able to spend more than the card balance.”
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The new procurement market intelligence report analyzes some of the key drivers and trends responsible for the growth of this market and its sub-segments.
Use of payroll cards as electronic payment solutions for the unbanked/low wages employees
Unbanked and low wage employees do not have the facility of using debit and credit cards or any electronic payment solution or access to conventional banking services. The adoption of payroll cards enables users to overcome this challenge, thereby propelling its demand in the global market. The increased focus on financial inclusion of underbanked and unbanked employees is also anticipated to reflect positively on the growth of the market during the forecast period.
Advantages associated with prepaid cards
FDIC laws and regulations back payroll cards that make it more safe and secure than cash payments. For instance, funds are PIN protected so in case a card is lost, the funds can be accessed or recovered. Furthermore, payroll cards eliminate the possibility of salary ending up in the wrong hands as the money is directly credited to the employees account instead of mailing it to the residential address or another worksite location.
Extensive benefits offered by payroll cards
The adoption of payroll cards offers various benefits, such as speed and ease of use, to employees when compared with paper checks and direct deposits. Payroll cards also provide excellent connectivity, flexibility, and security features. In terms of flexibility, employees can use payroll cards to receive funds from other jobs as well.
A more detailed analysis is available in the procurement market intelligence report titled, ‘Global Payroll Cards – Procurement Market Intelligence 2016’.
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