KeyBank has selected FIS to provide prepaid card technology to power a suite of payroll card services.
In a multi-year agreement, FIS will provide transaction processing, integrated voice response for customer service and card fulfillment. KeyBank was already a client of FIS, which sells a wide range of financial services technology.
"This new partnership allows us to expand our focus on relationship banking, reaching customers in ways that fit their needs, and better positions us to meet the needs of public sector clients who are looking for ways to cut costs while assisting beneficiaries," says Brandon Nowac, product manager for commercial prepaid cards for enterprise commercial payments at KeyBank, in a press release.
The cards will be open-loop and reloadable, and KeyBank will also act as a strategic advisor to address the needs of consumers and clientsparticularly those migrating from paper-based processes, KeyBank said.
Payroll cards can be controversial. The New York attorney general is investigating employers such as Walmart over payroll card fees.
Dan Henry, CEO of NetSpend, said in a recent earnings call for parent company TSYS that the recent scrutiny over payroll cards is "just part of the continued process" of bringing the product to a mainstream audience. His company went through the same process with prepaid cards. "It's almost: here we go again," he says.
KeyBank and FIS did not provide comment by deadline.