Feb 11, 2013 Dave King
As the unbanked and underbanked populations continue to grow in the United States, now representing tens of millions of adults, businesses and financial institutions have worked to create strategies that reach these individuals. Prepaid cards and other electronic payments have proven to be effective methods of marketing to these households, and now mobile devices are providing a new platform for financial services providers.
American Banker recently reported that mobile devices are already beginning to be the best to reach unbanked and underbanked individuals, as a majority of phone-users in the United States currently possess a smartphone. According to the news provider, mobile financial services help attract consumers that for one reason or another do not frequent physical establishments.
The source explained that several capabilities of mobile devices, such as text messaging and internet access, allow financial services providers to deliver products, marketing efforts and more to a variety of current or prospective consumers. Finally, American Banker asserted mobile-oriented electronic payments are becoming especially crucial to drive growth in emerging markets.
Businesses should consider either offering or accepting electronic payments through mobile devices to strengthen loyalty among consumers and drive profits.