Bye Bye Paper! Getting to 100% Electronic Payroll. Presenter: John Laudani

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1 Bye Bye Paper! Getting to 100% Electronic Payroll Presenter: John Laudani

2 Agenda Market Update Electronic Payroll and Paycards Employer and Employee Benefits Questions and Comments

3 PlanSource & rapid! PayCard working together to help you! No more double entry to register cards

4 Cost & Details No cost or charge No charge for cards and materials ordered and/or as needed. No cost for set-up, training, marketing or any monthly fees Where does rapid! PayCard make money? Ø From retailer interchange/swipe fees when a cardholder uses the card

5 New Financial Reality More than 5 million Millennials in the U.S. do not have a checking account

6 Employment Source: Bureau of Labor Statistics

7 Market Update Millennials Who are the Millennials? There are 80 million Millennials, making them the largest generation since the Boomer generation at its peak They are year olds split fairly evenly into three age brackets years years years Key demographics 52% are homeowners 49% are living together as couples 47% are parents 36% have income of US$75,000 or more

8 Market Update Millennials Prioritize all channels to reach Millennials and emphasize instant service Millennials move effortlessly between digital and offline touch points, and they expect brands to travel seamlessly with them Millennials strongly prefer text messages for many account management functions: Account balance update Bill payment reminder Late payment reminder Credit warning limit Notification of suspicious charges Regardless of channel, Millennials expect customer service to be instantly available, wherever they are, 24/7

9 Market Update Millennials It is important to understand how these differences and similarities impact Millennial financial views and needs Millennials differ from previous generations in the way technology permeates their lives and impacts their decision making However, a great deal of cross-generational influence means financial views and needs are more closely aligned than different

10 Market Update Millennials Millennials are not seeking a Next-Gen product feature Millennials remain optimistic about their financial future and seek credit Millennials are not seeking alternative rewards or new platforms, rather they are looking for competitive value propositions with strong financial management tools Ability to build credit Strong rewards Competitive rates/fees Security In addition to competitive value propositions, the messaging and channels used to attract and serve Millennials are vital

11 Market Update Millennials Opportunities for prepaid Mainstreaming of prepaid is creating a broad spectrum of needs Specific/limited Use case Full banking Banking Solution Complimentary Financial solution Modern banking solution Companion usage Cash based Consumer profile Banked

12 Market Update Design principles for digital products Fast Smart Authentic Iconic Make it feel fast Always stay two steps ahead More human, less machine-like Don t let them forget you

13 Payroll Card Addressable Market Forecast At the end of 2015, more employees received their wages on payroll cards compared to those who will receive their wages via paper check. Source: Aite Group LLC

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15 Compliance DEMO Enroll now at rapid! PayCard is compliant in all 50 states. We work directly with each client to set up the program within those regulations. Simplify state-by-state electronic payroll compliance Issue electronic payroll cards nationwide without regulatory concern Track, monitor and categorize each state s evolving payroll laws

16 Payroll Cards and Smartphones Age Distribution of Payroll Card Users Base= Respondents whose employer puts their earnings on a prepaid card and gives it to them. 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 18 to to to 65 94% Payroll Card Users OWN a Smartphone

17 Free Mobile Cardholder App DEMO rapid!access 4.1 Secure and immediate in-hand access to view and manage your account. First Time Login/New Card Activation all with your mobile phone View current balance now with running balance displayed Update your password, PIN and personal information Direct Dial Connect with customer service from the Contact Us tab Load a check to your card using your phone View recent transactions & transaction details Transfer funds Enroll & manage text alerts Locate an ATM and get driving directions to selected ATM s

18 Employer Benefits Reduces overall payroll costs by eliminating paper check processing, reconciliation, and postage It can provide a competitive employee hiring and retention advantage in the market Let s the owners and the managers focus on operations & not pay distribution Provides a no cost benefit to your employees: no check cashing fees, lost checks, or overdraft fees

19 Employer Benefits Eliminate exposure to check fraud Employee s funds are FDIC insured and protected by the MasterCard Zero Liability Policy PayCards should be easily replaced if lost or stolen

20 Questions? Thank you!

21 JOHN LAUDANI Channel Development Manager, rapid! PayCard