How did you get into the payments industry?
It all began when I started supporting ADP’s Employment Tax product, focusing specifically on tax liability remittance to the various federal, state and local agencies. This was my first role in a money movement/payments processing capacity. I was later asked to become more involved in ADP’s review of payroll remittance beyond the traditional check and direct deposit methods, which resulted in the development of our payroll card program (ALINE).
How do you see the payroll card industry evolving over the next five years?
We will see additional clarity from regulators and the Consumer Financial Protection Bureau (CFPB). We have seen some consolidation in those offering payroll cards in the market; this trend will continue but it may slow a bit. The integration of payroll cards with upcoming mobile wallet applications will likely become more prevalent as adoption/usage grows. I also think the pressures surrounding interchange in the broader market today (merchants) could create additional change in the future.
Additionally, there are more Millennials in the workforce than Baby Boomers and Gen Xers today, and they have already impacted every other dimension of the workplace. The payments space is next. Millennials prefer to do everything digitally since it’s how they grew up. Because of this changing market, we will see payment go completely paperless in the next five years. Cash and paper checks are already going away, and digital forms of payment, including payroll cards, will be there to replace them.
There has been news recently around new laws and the payroll card industry. How do you see these new laws changing the industry?
Some of the pending legislation creates a rigor and margin pressure that may be difficult for some payroll providers, especially if the pending regulations remain in their current state. The industry has always sought adequate protections that are balanced and not overly burdensome. I think this added clarity is good for the industry, employers and their employees.
Was there something that you found the in Visa payroll user card study that was surprising?
I was pleased with, but not surprised by the high percentage of cardholders who are satisfied with their payroll cards. I am always interested in the demographics of our payroll card users and the value that they place on certain features and functionality. It has been rewarding to see that a high propensity of comments point to ease of use and time savings specifically surrounding bill payment. In addition, many of the card users surveyed noted their desire to continue using a payroll card even if they were to move on to a new job.
Considering the payments industry overall is rapidly changing, what is ADP doing to stay ahead of the curve and relevant to your clients?
Product relevance is an ever-changing journey, as you know. We work very closely with our clients and their employees to better understand how we can improve our products. As employee expectations have been changing over the years, ADP has focused on updating its user experience by redesigning its human capital management platforms, including payroll solutions, with interactive tools and dashboards to provide a more engaging end-user experience. The enhancements to our payroll solutions are part of our broader effort to provide consumer-centric solutions.
I believe the future will call for greater simplicity in receiving one’s pay and the ability to move those dollars seamlessly when employees choose to invest, spend and transact is how employers will keep their employees happy and engaged. We work very closely with our clients and their employees to better understand their HR and payroll pain points and to “become a more human resource” that meets their evolving workforce needs.