If 2020 propelled one thing for finance, it would be digital payments favoring contactless interactions. What this leaves behind is a gap in the market for underbanked or unbanked consumers who are cash loyal. Luckily for that segment, Paysafe, the integrated payments platform, recently announced the launch of ‘Paysafecash,’ the new payment method for those who prefer to pay with cash.
Launched in the U.S., this eCash service will be powered by the Vanilla Direct payment network of InComm Payments, a global payments technology company. This service will resolve a gap in the market that has so far been excluded from the digital advancements in finance due to COVID-19 and will emphasize the enduring importance of cash in an increasingly digital financial economy. Now, with Paysafecash, Americans who are unwilling or unable to commit to credit or debit card payments online will have access to an option that relies on physical income.
First launched in 2018, this payment platform increased in popularity and demand and will be live in over 30 global markets. In a recent press release, it was shared that 22% of U.S. households are either underbanked or unbanked according to the Federal Reserve. For those who haven’t felt the need for a bank account, or wanted to create digital files containing sensitive financial data, this new service will enable online transactions that bypass these issues. Users of Paysafecash will be able to pay for their bills and utilities and access a large range of digital financial services, as well as interact with eCommerce as though they have a digital bank account.
Thanks to the pandemic, many suppliers have opted for digital payments platforms, leaving behind those consumers who’d prefer not to share their financial data online. Since these events have taken place, it was also found that 14% of people have taken on an eCash product at least monthly. This highlights an opportunity for Paysafecash.
Underscoring the timely relevance of Paysafecash as a solution for the digital finance averse, Udo Mueller, CEO of Paysafe said, “Against the backdrop of the converging trends of cash loyalty and a rising need to transact online, we feel there is strong consumer demand in the U.S. for our Paysafecash solution. We're proud to bring to the market an eCash product that will allow underbanked and unbanked Americans to participate in the digital economy and prevent financial discrimination against the cash consumer.”
To pay, consumers will need only to use participating websites and select the brand as a payment method at online checkout. This produces a barcode that can be saved to mobile devices or printed and presented at physical stores in exchange for cash payments.