Business software provider Sage Software has begun offering paycards as a way for companies to distribute paychecks to their employees.
Launched during Sage Software's annual customer conference, Sage Payroll Paycards are aimed at reducing payroll costs and liabilities associated with paper paychecks, while giving employees a different way to receive their pay.
Sage Software has partnered with Motivano, a New York-based employee benefits technology company, to bring the paycards to the market.
"Paper checks are a thing of the past," said Seif Saghri, chief executive of Motivano. "You are reaching the unbanked market. These are the people who don't have bank accounts. It brings them into the economy and lets them live their lives differently."
The paycheck is deposited into a reloadable card and the employee can then use it like a debit card to access services that require credit cards, such as reserving cars or hotels. Paycards also save those who use check-cashing establishments the fee associated with that service.
Paycards can be paid on days off and can also be used to pay monthly or recurring bills, track expenses, and view account balances and transactions online. No credit checks or prior bank relationship are required for the card.
"We can add thousands of accounts in a month," said Saghri. For more information, visit www.sagesoftware.com.
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