It’s not that these people are too poor for a regular bank account, it’s that a bank account requires ID and makes their money visible.
Illegal aliens and people subject to garnishment orders don’t want banks, and CERTAINLY do not want to step into a federal facility to get their money.
I’m sure regular banks could offer employers a way to issue cards which the employer could refill.
I beg to differ. The main reason poor people don't have bank accounts is because they've had accounts at that bank previously and were overdrawn. They can't open a new account without paying the overdraft, which means they go from bank to bank until there are no more banks available.
That's why they prefer NetSpend, Green Dot, PayPal cards etc - they can't overdraw because they can't write a check.