Tip:
Highlight text to annotate it
X
According to a 2011 national survey from the FDIC
a little more than 8 percent of U.S. households are "unbanked," meaning they
don't have a bank account. And the average full time unbanked worker will spend more
than $40,000 during their lifetime to cash their paychecks.
There are also more than 20 percent of U.S. households that fall under the
category of "underbanked," which means they have accounts, but lack sufficient
sufficient access to their accounts to do things such as check funds or transfer money.
These consumers often pay higher fees to do everything from
from cash paychecks to transferring funds.So why are so many Americans unbanked? It's
because of access. The unbanked and underbanked are disproportionally low
income and live in rural areas. But wireless technology via mobile banking
apps are providing them avenues they've never had before. The positive effects of
mobile banking are clear in Africa, where only 10 percent of people with a
primary education or less have a bank account.
Traditional banks aren't available, especially in rural areas, but 68 percent of adults in Kenya
are processing payments, transferring funds and accessing account information.
Mobile banking services are also an important tool for small businesses. Some
businesses are using digital wallets, eliminating the need for consumers to
carry a credit card. Others are are attaching credit card readers to their wireless
devices so they can accept payments anywhere and anytime.
From food trucks to mobile dog grooming services, accepting credit card payments
using a mobile card reader is a new feature that many small businesses are
offering their customers. And it's a
booming industry by 2015, the value of mobile payments is expected to
reach $670 billion, more than two and a half times
what it was in 2011.