I personally think employee payroll card systems are a raw deal for the employees. Even if the employees don't have their own bank accounts (which is increasingly rare), the payroll card doesn't give the holder much flexibility in how to use their money. In many cases, the holder gets one free withdrawal per pay period, with extra transactions incurring fees. Depending on the issuing bank, there may not be any fee-free ATMs in a given area either. If you have your own bank account, it just seems cumbersome to have to receive pay on one card and figure out how to get the money to your "real" bank account to pay bills and such things.
I suppose, however, for people who either don't like having checking accounts or for people who don't use direct deposit for whatever reason, it may be better than the alternative of collecting a paper check every pay day and having to find someplace to cash it. Most of those check cashing places charge fees too, so for people in that situation, it's a bit of a pick-your-poison proposition.