PayCards As A New ProfitCenter

NEW ORLEANS - (02/16/05) – Credit unions and banks canprovide a new service to members while adding to their profitcenters by adding a new product, stored value payroll cards,according to one industry expert. Payroll cards can help capture anew market niche, the unbanked or under-banked, while providing aneeded service for business customers and select employee groups,said Doug Anderson, president of Genpass Corp’s MoneyPasselectronic funds operations and a founder of the Federal ReserveBank of Atlanta’s automated clearinghouse business.“The reason I know that payroll cards are going to succeed isbecause they address real problems for real people,” Andersontold attendees to the Texas CU League’s TechMecca conference.But just as important, he said, is the potential the payroll cards,known as paycards, pose for cross-selling products and services tonew customers, collecting new fees on transactions, and earninginterest in the float provided by the new pool of funds.“Those are benefits the financial institution can identifywith,” said Anderson.