Even though it may seem like everyone using credit cards and debit cards via mobile wallets is on the horizon, the world’s largest economy still relies on cash more than any other payment method. In fact, contrary to many predictions, cash is still on an up-rise in the U.S. It’s estimated that over 138 million adults in the U.S. are financially underserved, and they rely on cash for all of their daily transactions, according to a study conducted by the Center for Financial Services Innovation.
Let’s dive into the latest payment method statistics survey, so we can better understand why cash is still on the rise. Cash constitutes 31% of the value of all transactions based on a study done by the Federal Reserve Bank of San Francisco. Cash usage by the underserved went from $1.6 trillion up to $1.94 trillion over the last three years, according to the Center for Financial Services Innovation. Also, 28% of Americans are un-banked or under-banked, relying on cash and alternative payments. What’s interesting is 90% of them have access to a mobile phone, and 73% use smart phones, according to a 2015 Federal Reserve Mobile Financial Services report. Looking at the demographics, 80% of this group are U.S.-born citizens, 45% have some college education, 27% are earning over $50,000 per year, and 43% are homeowners.
The world is moving to cash payment platforms that are mobile friendly, accredited, complaint, trusted, and secure, with anti-money laundering controls. This ensures convenience and peace of mind for consumers making payments and merchants accepting cash.
Have you imagined the potential if lenders had the means to accept cash remotely? What if lenders could provide underserved consumers with a mobile or printed cash payment option at thousands of locations nationwide?
This would empower consumers to pay their bills with cash on their own schedule, at a nearby, trusted retailer like 7-Eleven, CVS, or Family Dollar. With the PayNearMe network, businesses can easily adopt a new mobile-friendly, cash payment solution for their consumers. This solution offers simplicity and convenience, and it’s as easy as buying milk at your retail store. Payments are guaranteed, with expedited, same-day posting. This eliminates the need for filling forms or standing in special lines or walk-up windows. Money can be handled properly by a neighborhood trusted retailer, where a receipt confirms guaranteed payment; and is less expensive than most alternative payment options. Customers can now pay bills anytime, including evenings, holidays, and weekends! Payment times are no longer limited to times when branches are open.
This is an exciting possibility … give your customers greater flexibility to turn their phones into a cash-payment tool, and make their overall experience in paying off their loans effortless and convenient!
