the United States, millions of people struggle to achieve financial security every
day. Initiatives that show how financial uncertainty impairs low- and
moderate-income people, such as The Wall Street Journal’s Financial Inclusion Challenge, are crucial for raising awareness and
encouraging for-profit and nonprofit enterprises to work to improve the
financial health of such individuals.
inclusion is a challenge impacting millions of Americans and many more around
the world. According to the Federal Deposit Insurance Corporation (FDIC), 7 percent of U.S. households –
roughly 9 million – were “unbanked” in 2015, meaning no one in the household
had a checking or savings account, and another 19.9 percent, or 24.5 million
households, were “underbanked,” meaning that they held an account at a secured
financial institution but also obtained financial services and products outside
the traditional banking system.
As the PYMNTS
Global Cash Index
shows, overall cash use is rising in many global markets as economic growth
improves and consumer spending increases. In line with these findings, Retail Banking Research highlights that financial inclusion is
a key factor in the trend of rising ATM withdrawals.
plays an important role in the day-to-day lives of many – especially the
unbanked and underbanked. For instance, many underbanked households use cash to
pay bills, as reported by the FDIC. The ATM Industry Association has been brainstorming ways that ATMs
can be enhanced to help these households – including sending money to someone,
paying bills and loading a portion of a check onto a prepaid card. Already,
ATMs can accept mixed-media deposits, handle money transfers and furnish
on-screen video connections to remote tellers. The critical connection point of
the ATM allows cash to move freely between the digital and physical worlds,
enabling payment choice and inclusion.
by PYMNTS about cash use in Mexico’s economy spotlighted the
outsized role cash plays in the country, where roughly 90 percent of the
population prefers to make payments with cash. Retailers there understand how
essential it is to accept cash for payment. As a result, big retailers such as
Walmart and Amazon are introducing hybrid payment systems that accommodate
cash-based transactions for online purchases. Consumers can also pick up their
online orders at convenience stores, pharmacies and banks and pay with cash.
Other companies offer cash on demand or prepaid methods that allow shoppers to
receive home delivery on their orders. Enabling a digital commerce to cash
connection enhances consumer choice and financial inclusion.
simply, cash is the most universal and easily-understood method of payment, and
continues to be the payment method that anyone can use at practically any time.
A cashless society isolates the unbanked and underbanked, removes choice for
everyone and concentrates power over payments in the hands of a select few.
matters to people throughout the economy, for everything from sending a
birthday gift to tipping a bellman to purchasing a latte at a street cart. But much more than a convenience, cash is
absolutely critical to the unbanked and underbanked whose financial lives are
centered on it. Cardtronics believes in financial inclusion, in providing the
cash consumers need where and when they need it most. At Cardtronics we are
Champions of Cash… because it matters.
Vice President – Marketing