Payroll and accounting software company Patriot Software is addressing the friction of onboarding employees to receive wages via direct deposit. In an announcement on Monday (Feb. 18), Patriot Software said it is rolling out Patriot Direct Deposit, a way to streamline employee onboarding to direct deposit via standard four-day ACH or bank wire transfers.
“Patriot Direct Deposit streamlines the onboarding process for our customers,” said Patriot Software Operations Manager Michael Streb in a statement. “The entire onboarding process is completed within our web-based software application, and is entirely paperless. Reducing the time it takes to complete the direct deposit process has resulted in a much smoother onboarding experience, which our customers love.”
The solution is now integrated into Patriot Software’s existing Basic Payroll and Full Service Payroll tools, the company noted. Furthermore, it plans to add direct deposit onboarding functionality in the year’s second quarter for employers that hire on-demand workers and contractors.
While direct deposit is a popular payroll method for employers, paper checks also remain commonplace. In 2016, Patriot Software introduced a feature that allows businesses to use black check stock to print their own payroll checks, a signal that payroll service providers must also adhere to companies’ demands for legacy payroll tools.
In an interview with PYMNTS at the time, Streb explained that customers had continually requested the service, pointing to the “unbankable” employee segment.
“There is a segment of people who can’t get bank accounts, and there is also a segment of people [who] don’t trust banks. They’d rather take a check to a cashing place or Walmart and have cash in-hand,” he said.
However, demand for paper checks is likely declining. PYMNTS data published last year found that 53.7 percent of employees prefer direct deposit as their top preference when it comes to receiving wages, with more than 14 percent noting they are dissatisfied with paper checks.