Fintechs Close the Financial Services Gap for the Underbanked

It’s safe to say there have been many, many changes that have taken place over the past year during the COVID-19 pandemic. While many of them have been viewed as negative and tiresome, not all have been bad. One of these improvements is the changes financial-technology providers have made for the unbanked and underbanked consumer.

Carat and Paysafecash

Various financial-technology providers have closed the gap on consumers’ access to financial services. According to the Electronic Transactions Association’s recent report, one of these developments is the PIN-on-glass solution from Fiserv’s Inc.’s Carat unit. This technology accelerates the acceptance of electronic benefits transfer cards to pay for online grocery purchases. 

Essentially, this solution allows grocers to create a digital PINpad within their digital-commerce environment. EBT cardholders are then able to easily verify each transaction. This technology was launched just last year in an effort to provide merchants the digital payments solution they need to serve Covid-wary consumers.  

Paysafecash is yet another solution helping to rapidly close the access gap to financial services. Paysafe Group introduced this technology to allow consumers to make purchases online and complete the transaction at a physical payment point via cash. The process starts with a purchase being made online. The consumer then receives a barcode via text, email or printable PDF. 

Once in-store, the barcode can be scanned and cash accepted. The e-commerce seller is then notified that the transaction has been completed. The more than 70,000 Paysafecash merchants include 7-Eleven, CVS, Walgreen and Family Dollar. 

“These types of products are designed to allow underbanked and cash-based consumers, which tend to be low-income, to receive the full benefit of the modern payments ecosystem,” explains Scott Talbott, senior vice president, government affairs for the ETA. 

Mobile wallets and P2P payments

As the changes in consumer payment preferences continue to shift, mobile wallets and P2P payments have also gained popularity. According to data from the Pew Research Center, 98% of the U.S. adult population has a mobile phone and 81% of those mobile phones are smartphones. In addition, 34% of consumers use their mobile phone as their primary way of accessing their bank account. 

“More people have cell phones than [have] bank accounts,” says Talbott. “Making free apps available that can be downloaded to cell phones can help consumers access these services.”

Talbott went on to say that “Providing the underserved consumers access to financial-services technologies helps reduce banking deserts by providing a convenient way for them to receive, hold, and spend their funds in a secure manner. And that’s exciting.”

Where to Find Payment Solutions

Without a doubt, consumer and payment trends are changing. One of the best ways to make sure your business has the solutions it needs and information on the latest trends is to keep up with the updates provided by bestpaymentproviders.co.uk. Quickly find the right payment provider that meets your needs, has the reputation your business deserves and offers the payments solutions that satisfies your customers’ growing needs.

Payment industry guru Taylor Cole is a passionate payments expert who understands the complex world of bestpaymentproviders.co.uk He also writes non-fiction, on subjects ranging from personal finance to stocks to cryptopay. He enjoys eating pie with ice-cream on his backyard porch, as should all right-thinking people.