Global Cash Card, a pioneer in electronic form of payments, has recently been acquired by ADP. Through this acquisition, ADP will gain access to Global Cash Card’s consumer base. Once the integration process is over, the company would manage more than 4 million accounts through a single portal. Moreover, there are around 700,000 clients under ADP who will have the access to Global Cash Card.
ADP’s revenue from payroll processing services has not witnessed strong growth. With Global Cash Card’s acquisition, the company is expected to attract more potential customers under its payroll processing business.
Global Cash Card’s offering is targeted at people who work as independent contractors and freelancers; mainly offering assistance to gig economy. For people residing in the US, Form 1099 is one of the most important documents. The Form alone accounts for transactions worth $ 700 billion to $1.1 trillion every year. At the moment, over 70% companies in the US use Form 1099 to manage their workforce. Additionally, over 25 million homes in the US are underbanked. Consequently, there is a huge growth potential for payroll cards, which can translate into a sustained long term growth opportunity.
According to Paynxt360, country's payroll prepaid card market in terms of transaction value is expected to record a CAGR of 20.3% during 2017-2021 to reach US$ 93,413.0 million by 2021, increasing from US$ 44,607.6 million in 2017.
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