According to the ‘2015 FDIC National Survey of Unbanked and Underbanked Households’, it is estimated that around 27% of population in the US is unbanked and underbanked, which translates to over 34 million people. With the penetration of smartphones, the use of those for conducting money transfers and pay bills. Mobile banking has enhanced financial inclusion of the unbanked population. Lower income group and millennials are not likely to utilize traditional banking services. Instead they prefer to use electronic payments, mobile banking, and payroll cards.
Prepaid cards are popular among the unbanked. Moreover, prepaid cards are more profitable to banks and financial institutions as these cards are not regulated by the government or central bank. Various startups are bringing mobile banking to the unbanked population. On March 17, 2017 Sionic Mobile has partnered with Customer Engagement Technologies (CET) to offer mobile loyalty and instant rewards to the underbanked.
CET’s mobile app named PaySwag will be integrated with Sionic Mobile’s ION Commerce Engine (ICE) to allow users to top up cash into their mobile wallet and pay for products and services with their mobile devices. They can also earn rewards instantly via the Mobile Rewards Marketplace. The integration will leverage the debit card and credit card processing via JP Morgan Chase. PaySwag eases the collection process for underbanked customers, government, and businesses by enabling cash or card payments via rewards. The users can make on-time bill payments and earn rewards in the process.
To know more and gain deeper understanding of prepaid card industry in the United States, click here