PayCard and Payroll Best Practices

1. PayCard and Payroll Best Practices Smartphones, Tablets and Watches in Payroll Presenter: Chris Ruppel

2. Speaker Chris is currently the General Manager of Corporate Payments with UniRush, LLC. Chris brings to his role more than 18 years of management, leadership and entrepreneurial experience. Prior to joining UniRush, Chris was most recently VP and GM of Prepaid Cards for the Americas at WEX Inc. As part of WEX’s global expansion in the Americas, the WEX prepaid card business expanded into Brazil with the acquisition of FastCred and a controlling interest in UNIK. Prior to joining WEX he was the CEO and a founder of rapid! Financial Services (rapid! PayCard) from 2004 until it was acquired by Wright Express (WEX) in April of 2011. From 1996 until 2008 Mr. Ruppel served as Vice President of Sembler Investments and held leadership positions in numerous portfolio companies. Chris holds a BA of Finance and a BA of English, both from the Florida State University. Chris RuppelSVP, General Manager of Corporate Payments, UniRush LLC

3. Payroll in 2025: Three Undeniable Trends and How They Will Affect Payroll Departments Like Yours • Jet cars. Hover boards. Food replicators. • The most accurate predictions are rooted in trends happening right now. • Rather than extrapolate on what the future holds for Payroll Departments in 3016 (for example) • Following are three undeniable trends that will hold considerable sway not only on employees but also on payroll practices in 2025.

5. Today’s Labor Force

6. The Youngest Baby Boomer was born in what year? • The Baby Boom Generation • Born; 1946 – 1964 • Age; 51 -69

7. The Boomers Fade Away • In the first quarter of 2015, about 45 million Baby Boomers were in the labor force. • The Baby Boom workforce peaked in size at nearly 66 million in 1997. • The youngest Boomer is now 51 years old, while the oldest Boomers are approaching age 70. • With more Boomers retiring every year and not much immigration to affect their size, the size of the Boomer workforce will continue to shrink

8. Our nation’s changing demographics reap the economic benefits of a diverse and inclusive workforce.

10. Demographic changes drive Mobile • It’s no surprise that consumer habits around mobile will continue to shape the evolution of shopping, retail and payments. • Among that reality is one called “Mobile Search and Discovery.”

13. Mobile phones are prevalent among unbanked and underbanked consumers • Nine percent of consumers were unbanked at the time of the survey. Forty percent of the unbanked had access to a smartphone, 28 percent had access to a feature phone, and 32 percent lacked access to any type of mobile phone. • Twenty-two percent of consumers were underbanked, meaning they had a bank account and had used one or more alternative financial services (typically from a nonbank) within the past year. Seventy percent of the underbanked were smartphone owners, and 17 percent owned a feature phone. • Among the underbanked with mobile phones, 55 percent used mobile banking.

14. How does pervasive connectivity translate for Payroll Departments? • For Payroll Departments, this connectivity will spur an even stronger ability to do payroll without walls. • Payroll Departments will transition from consolidated hubs to divergent models spread across more locations and with fewer employees in each location. • Employees will be hired for their skills, regardless of where they reside. • Video will be even more integral with this remote workforce as a means to meet and collaborate.

15. 162 minutes — that’s how much time the average American spends on his or her mobile device per day. • The data tells a clear story that apps, which were considered a mere fad a few years ago, are completely dominating mobile, and the browser has become a single application swimming in a sea of apps

16. Small businesses you interact with in your everyday life have their own dedicated mobile app — be it the corner coffee shop or the beauty spa downtown • Here's Why Your Business Needs Its Own Mobile App • Be Visible to Customers at All Times • Create a Direct Marketing Channel • Provide Value to Your Customers • Build Brand and Recognition • Improve Customer Engagement • Stand Out From the Competition • Cultivate Customer Loyalty

17. Most consumers with bank accounts reported using a mix of online and offline channels to interact with their financial institution • Among mobile banking users with smartphones, • 54 percent cited the mobile channel as one of the three most important ways they interact with their bank, • below the shares that cited online (65 percent) and • ATM (62 percent), • but above the share that cited a teller at a branch (51 percent).

20. Paramount Focus on Security • The payroll business is risky for one simple reason—it’s where the money is. • So, fraudsters and cybercriminals are going to attack it over and over and over again. • The total cost of data breaches worldwide is projected to quadruple by 2020, • to $1.2 trillion, according to a Juniper Research study, • with the average cost per breach exceeding $150 million.

21. Paramount Focus on Security • Target. Home Depot. JPMorgan Chase. Major data breaches in these organizations have elevated consumer awareness and concern for the security of private or personal information. • Daily processes and habits that are the norm today will soon open practices to sizable risks. For example, delivering PII Personally Identifiable Information via email is still common practice in payroll. • This practice clearly exposes your department and company to unnecessary risk and the potential for costly fines.

22. Paramount Focus on Security • In the 2015 Fed Study the concern about the security of the technology was a common reason given for not using mobile banking or mobile payments • 73 percent and 67 percent, respectively, of non-users

23. This survey was conducted May 30, 2o14 through June 30, 2014 among 3,217 adults, including 3,042 cellphone users. 

24. As Your Company Expands, So Does Your Fraud Risk Fraud is a persistent threat within all organizations and affects businesses of all sizes and across all industries • Have you thought about segregation of duties? • Are you building internal controls around managing check stock?

25. For some businesses, the more they grow, the more checks they end up handling. What are the risks involved with handling large amounts of checks on a regular basis?

26. We often hear companies, including payroll agencies, boast about how they provide exceptional client service. • But how do they define exceptional? • Just Doing Your Job Vs. Delivering Exceptional Service • Creating Real Relationships • Asking Real Questions  • Participate In More Than Just Projects • Help Them With Services That You Do Not Provide • Pick Up The Phone • Face The Bad Times Head On • Be Thankful And Show Appreciation

27. Conclusion • The growing influences of connectivity, mobility and security present a unique challenge for today’s payroll practitioners. • If you ignore them, your department could suffer. However, if you meet them head-on, you will have a healthy department tomorrow – and beyond. • Take the time to review your current processes and technology to ensure you are set to meet and address these undeniable trends.

28. Questions? Thank you!