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New study finds millennials forgoing traditional banks

Even though the majority of employees in the U.S. are paid via direct deposit, research shows that one-fifth of the workforce remains "unbanked," according to an article from the National Retail Federation. These employees without banks require physical paychecks, which has led to the increase in use of reloadable paycards.

"Supporters say paycards can offer retailers an easy and less costly way to pay unbanked employees, and can also help those employees save money on expensive check-cashing...But critics say the cards have hidden fees for workers and drive up other costs for retailers because swipe fees are charged each time the cards are used to make a purchase."

A study from The Center for Generational Kinetics, found that roughly 5 million millennials do not have a checking account. Nearly half of those millennials said they chose to forgo traditional banking due to a "distrust for banks," and 64 percent agreed paycards should be offered by employers as a payment option.

As more millennials are becoming involved in the powersports industry, both working and buying, perhaps now is the time to consider paycards as an alternative payment method.

To read the full article, click here.

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