AZ Unemployment, Child Support: Way2Go Mastercard
The state of Arizona will use a new electronic payment card (EPC) provider for unemployment insurance and child support, according to a press release.
The Arizona Department of Economic Security (DES) has announced that it will transition EPC payments from Bank of America services to a Way2Go card, effective September 23, 2021.
The new card would be mailed to existing unemployment insurance claimants as well as child support clients.
After that, the payments will be automatically deposited to the new Way2Go card.
Pandemic Unemployment Assistance (PUA) applicants who do not have an EPC but will need it after September 26, 2021 will receive a card. But the press release says those with funds remaining on their Visa Bank of America card will be able to have full access to those funds until December 31, 2021.
Americans have historically struggled with financial services, with more than six percent of U.S. households not having banking status, and nearly 19 percent are underbanked, with low-income households particularly likely to be unbanked. not have access to a bank account.
One solution has been to offer debit solutions like prepaid cards, which have been used by financial institutions to help attract those who are less banked. This includes low-fee cards that have been used to avoid issues that have generally made it harder to attract low-income customers, including excessive fees and overdraft fees.
Read more: Prepaid Debit Cards Considered Easy and Secure Way to Do Banking for Unbanked Americans
PYMNTS, in July Next Generation Debit Tracker®, found that 69% of users say convenience is the number one issue they see when using speed.
Download the report: July PYMNTS Nex-Gen Debit Tracker®
Some companies, like fund provider Remitly, are using debit as a solution to add more functionality to immigrants through low cost debit options. And users will be able to access virtual debit cards while waiting for physical cards in the mail.
With this offer, users will be able to purchase goods and less depend on payday loans or other such services.