That $0.75 looks like a lot to you because you are used to "free"* checking where it costs you nothing* to keep your money in the bank. For the unbanked population (unbanked because they don't have enough savings to qualify for free* checking, or are illegal immigrants), $0.75 is way cheaper than the check cashing services that you find throughout the inner city. And much safer than taking home a wad of cash on a predictable pattern.
Having said that, There needs to be some precautions that forbid an employer from forcing an employee into a particular card service (i.e., the one that gives the employer the biggest kickbacks). Maybe like a 401k, where the employee can pick from a menu of cards. Although even the 401k analogy is poor because while the underlying funds may come from different companies, in general, the 401k provider themselves are a monopoly chosen by the employer and if you don't like it, tough.
*There is (almost) no such thing as "free" checking. Almost every checking account has some way that, in theory, your bank can charge you minimum balance fees or overdraft fees, etc. It is not easy to always follow every rule in the agreement, and although most of us will blow off a $10 minimum balance fee or an overdraft line with a 20% interest rate, to the poor the $0.75 will cost them less over time than all of the nickel and diming that comes with a "free" checking account. At least the latest generation of prepaid cards is (mostly) honest and upfront about the fact that they are providing you a service (safe, convenient access to your money) and you pay for it directly instead of indirectly.