Cachet Mobilizes Prepaid Payroll Systems
Cachet Financial Solutions has built its business on providing mobile financial and prepaid card services for an array of businesses, including banks and credit unions. On Thursday (Sept. 10), the company rolled out its latest service, and it’s one that doesn’t normally get much attention in the enterprise mobility space.
Reports said the company can now issue its payroll system for corporate clients with the Select Mobile Money program, a platform that comes with a mobile app for business users. The tool provides payroll managers with a prepaid MasterCard, a debit card linked to an account number that lets employers pay their workers through direct deposit.
Cachet said MasterCard and its issuing bank have both cleared the way for the new offering.
With a mobile solution attached to the service, Cachet added that corporate users can access an array of cloud-based banking services through their mobile devices, including account management, card-to-card transfer, and other tools to help businesses pay their employees on the go.
In a statement, Cachet CEO and President Jeffrey Mack said the new service is in response to companies’ increasing adoption of mobile business management tools.
“Select Mobile Money-Payroll is in sync with today’s mobile-centric employees’ lifestyles, increasing employee loyalty and reducing turnover for employers,” he stated, adding that a digital, mobile payroll solution cuts the friction out of issuing paper paychecks. “With check processing costs at roughly $2 a check, companies can also significantly reduce issuing and processing costs by switching to Cachet’s more economical payroll card solution.”
The company cited statistics from MasterCard that found the prepaid card market is expected to expand by 16 percent every year in the U.S., and is likely to hit a valuation of $421 billion in just a couple years.