ADP has unveiled a new payments card system to enable small-to-medium enterprises to pay gig workers using a range of different methods.
According to TechTarget, the Wisely Pay card is targeted at young workers who do not have traditional bank accounts because, according to the payroll services provider’s research, a third of Millennials would reject a job offer if they could not choose how to be paid.
The card functions like a bank account, which means that employees are paid instantly, can make peer-to-peer payments via their mobile devices or home computers and use cash wallet systems like Apple Pay, Samsung Pay and Android Pay. They can also set aside money for tax in a savings account and choose voluntary, employee-paid benefits.
Brian Sommer, an HR tech analyst and founder of TechVentive, said: "ADP is correct in that multiple payment methods are needed for today's workforce. Some of this is generation-driven, and some of it is triggered by new kinds of work and work requirements, such as greater reliance on contingent workers.
But the most important thing is that employers provide workers with choice and enable them to “move from one payment method - like a payment card - to another, such as direct deposit, easily and on-demand", he added.
ADP Wisely Pay will be available from September and is aimed at small to medium-sized businesses as most large enterprises already have a pay card system in place.
Cliff Stevenson, principal analyst with the Brandon Hall Group, said the most notable feature of the new payment system was that employees were paid instantly and were able to see their money as soon as they clocked out.
"This could be huge for retail and service, but how that will affect payroll costs for those companies is still unclear. Plus, smaller restaurants and small businesses would probably opt out of this, since they may not have the ability to cover these instant payments,” he said.
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
ADP has unveiled a new payments card system to enable small-to-medium enterprises to pay gig workers using a range of different methods.
According to TechTarget, the Wisely Pay card is targeted at young workers who do not have traditional bank accounts because, according to the payroll services provider’s research, a third of Millennials would reject a job offer if they could not choose how to be paid.
The card functions like a bank account, which means that employees are paid instantly, can make peer-to-peer payments via their mobile devices or home computers and use cash wallet systems like Apple Pay, Samsung Pay and Android Pay. They can also set aside money for tax in a savings account and choose voluntary, employee-paid benefits.
Brian Sommer, an HR tech analyst and founder of TechVentive, said: "ADP is correct in that multiple payment methods are needed for today's workforce. Some of this is generation-driven, and some of it is triggered by new kinds of work and work requirements, such as greater reliance on contingent workers.
But the most important thing is that employers provide workers with choice and enable them to “move from one payment method - like a payment card - to another, such as direct deposit, easily and on-demand", he added.
ADP Wisely Pay will be available from September and is aimed at small to medium-sized businesses as most large enterprises already have a pay card system in place.
Cliff Stevenson, principal analyst with the Brandon Hall Group, said the most notable feature of the new payment system was that employees were paid instantly and were able to see their money as soon as they clocked out.
"This could be huge for retail and service, but how that will affect payroll costs for those companies is still unclear. Plus, smaller restaurants and small businesses would probably opt out of this, since they may not have the ability to cover these instant payments,” he said.
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
