How to pay your staff with prepaid cards
Prepaid cards – particularly general purpose reloadable prepaid cards – were introduced in South Africa in 2012. Since then the versatile cards have made transacting both more convenient and more secure across a broad spectrum scenarios. General purpose reloadable prepaid cards have also opened up financial possibilities for thousands of unbanked individuals in the country. You no longer need to visit a bank to own a Visa card, you can simply activate an account using your mobile phone and providing your identity number.. Workers who were previously paid in cash are now able to receive their wages on a reloadable card. In this blog, we’ll look at how prepaid cards can help you pay your workers and streamline your payroll.
Prepaid cards make paying construction or farm labourers easy
Picture this scenario. A large construction company in the Western Cape employs over two hundred workers. Every week they receive their wages in cash. The HR and accounts department liaise to calculate hours worked, what each employee is owed, and then visit the bank to withdraw the amount that’s needed. Wednesdays are pay day and the two hundred odd workers line up to wait for a member of the accounts department to arrive with their hard earned wages. A scene just like this ensues every Thursday on a farm in the Northern Cape. This time there are only fifty workers to pay, but the owner of the farm must drive over a hundred kilometres to withdraw cash from the nearest bank in Kimberley.
Workers need only their ID number and a mobile phone to open an account
If you’re thinking about paying your workers with reloadable cards, getting started is easy. You simply need to buy the prepaid cards (available off the shelf from a wide range of stores, listed on the Reload website, or directly from the Reload team) and then distribute them to each worker. The cards come with instructions clearly explaining how to activate their account using the unique card account number, their name and SA identity number. It takes a matter of minutes, after which they have a mobile money account – and the option to link their Visa card to their account by providing some basic FICA documents. Your workers can then use the card to withdraw cash at ATMs, swipe in-store for free and transfer money between accounts.
You’ll save time and money by paying wages using prepaid cards
As an employer you’ll be able to set up a master Reload account, making all transfers to other Reload accounts completely free and instant. Instead of weekly trips to the bank to withdraw your staff’s wages in cash – incurring you large bank fees, not to mention the risk of transporting large amounts of cash – you’ll be able to manage everything online. Staff can get paid with the click of a button without having to wait for their money to clear. You’ll also save yourself the weekly trip to physically hand out wages.
If you’d like more information about how Reload Mobile Money can help you alleviate the admin of paying workers in cash, visit our website.