Prepaid Payroll Cards and Direct Deposit a Hit With Employees

American Payroll Association logo for electronic payrollApparently, most employees don’t necessarily want a paper paycheck these days. In a recent survey titled “Getting Paid in America” conducted by the American Payroll Association, Sixty-eight percent of employees are OK with being paid electronically instead of by traditional paper paycheck.

The annual survey posed questions to employees on their preference of payment and found that paper paychecks accounted for only four percent of the respondents. Ninety-six percent of those surveyed were paid by paycards or direct deposit into a bank account. Both payment methods allow electronic payment to virtually all employees, even those without a bank account.

Laura Kelly, Group Executive, Global Prepaid & Debit Product Solutions, MasterCard Worldwide stated:

“Prepaid payroll cards are an efficient payment tool that streamline the payroll process, increase operational efficiency and reduce payroll costs for employers, while also providing employees with greater security, convenience and control over their paychecks.”

In addition, “paperless payroll” or, the electronic delivery of pay stubs by an employer was deemed adequate by most employees in the survey. Many companies already deliver payroll data through a secure online portal to their employees.

When over 31,000 of those surveyed were asked, “How would you feel if your company no longer gave you a paper pay statement but instead provided breakdown of your paycheck through an online portal?” Almost a third of those surveyed said either “would like it” or “my company does it and I like it.” Almost forty percent were open to electronic payment responding that it “wouldn’t matter.” Thirty percent would rather not change methods.

Dan Maddux, Executive Director of the American Payroll Association commented:

“Our survey shows that 96 percent of employees prefer the convenience and safety of electronic payment methods. Plus, electronic pay saves employees time spent cashing their checks and can help them increase savings.”

The “Getting Paid In America” survey was held in conjunction with APA’s annual public awareness campaign, National Payroll Week (NPW), held annually the week of Labor Day. For complete results, visit

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