PreCash introduces mobile wallet for underbanked
14 September 2012 | 2273 views | 0
Today at FinovateFall 2012, PreCash announced and demonstrated FlipMoney, the first viable mobile wallet app for underbanked consumers.
With Flip, for the first time, people without a bank account or credit card can do instant remote check deposits and perform free expedited bill payments with their smartphone. Flip makes mobile payments faster, affordable and accessible to more people.
"Historically, people with the least amount of money and free time pay more and have fewer convenient options to do simple things like pay bills or cash checks," said Steve Taylor, PreCash CEO. "Until now, the current cadre of mobile payments and financial services apps largely ignore the needs of people without bank accounts and credit cards. Flip changes all of that by combining instant remote check deposit and free expedited bill payments in a single mobile wallet that works with a prepaid card."
Flip is currently being field tested. Large scale deployment will begin this fall. During Finovate, PreCash announced the mobile solution can be customized and branded for mobile carriers, prepaid program managers, money service businesses and other merchants.
Instant Means Remote Checks Are Now Sensible for the Underbanked
Flip allows a person without a checking account to remotely deposit their checks into a mobile wallet that works with a prepaid debit card. Flip is unique because a user can elect an instant check deposit option that typically makes funds available within minutes. Current remote check deposit solutions take three to six days to process.
"Underbanked people often live paycheck-to-paycheck and simply cannot wait six days for a check to clear, so traditional remote check deposit wasn't a practical solution," adds Taylor. "With Flip, we're making it possible for users to take a picture of a check and get their money in a mobile wallet immediately. It costs about the same or less than a check casher, but the consumer doesn't have to leave work or stand in line to access their money right away."
Free Mobile Expedited Bill Payments
Flip also offers free expedited bill payment transactions to more than 10,000 billers, including utility, wireless, cable, Internet, auto loan and other service providers. Many of the payments post in real time. Additionally, the app will soon offer prepaid mobile top-up and international top-up for phones in more than 300 countries.
"Money orders cost up to $5.00 for each bill and can take five days to reach a biller," says Taylor. "So to ensure timely payment or to avoid service interruption and late fees, many people pay an extra $15 to do expedited bill payments. We offer mobile expedited payments without a fee. A person making $30,000 or less a year should be able to pay bills or get paychecks just as easily as someone who makes millions, and Flip makes it possible."
The app will first be available for Android phones with an iPhone version soon to follow. Flip also allows the user to send money to others who have the app. With the associated prepaid card, users can spend money anywhere that accepts card payments and get cash at ATMs. Additionally, cash can be loaded to the wallet at more than 100,000 locations nationwide.