payments innovation for the financially underserved

Payments Innovation for the Financially

Underserved

Jonathan LeBlanc (@jcleblanc)

Global Head of Developer Evangelism at PayPal

Underbanked / Unbanked?

The Underbanked

The Unbanked

State of the US

The Unbanked8.8% of America households (1 in 12, or 10.8 million) are unbanked

The Underbanked20.1% of households (1 in 5, or 24 million) are underbanked

Household Account Types• 29.3% have no savings account• 10% have no checking account

Use of Alternate Financial Services• 25% use at least one AFS• Almost 1/10 regularly use 2 or more• About 4/10 unbanked and

underbanked used an AFS in the last 30 days

Manipulating the Underbanked and

Unbanked

Turning to Mobile

The Underbanked• 91% of underbanked have a mobile

phone• 57% have a smartphone• 29% used mobile banking in last 12

months• 17% have used mobile payments

The Unbanked• 64% of unbanked have a mobile phone• 18% have a smartphone• 10% used mobile banking in last 12

months• 12% have used mobile payments

A Technology Use Case

Funding: Prepaid Debit Cards

http://ppd.io/pp-prepaid-card

Commerce: Bluetooth Smart

http://ppd.io/pp-prepaid-card

Point of Sale Integration

http://www.shopkeep.com/

Bluetooth Smart Hacking

The New Savings Market

Family Run Accountshttp://ppd.io/pp-family-savings

Family Savings Hacking

Learning from the Rest of the World

What to Think About

Funding

A single savings / checking account or some pre-paid / cash equivalent card

Payments

Mobile first approach

Targets

Payday loans / high interest rate organizations

Thanks! Questions?Slides: http://slideshare.net/jcleblanc

Jonathan LeBlanc (@jcleblanc)

Global Head of Developer Evangelism at PayPal