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survey (2017). A cashless ban would exclude and alienate revenue opportunities limited by an overlooked consumer
these Americans from the economy – and would also be demographic.
ethically problematic.
However, concerns about financial inclusion are already
While the numbers of unbanked Americans is lower than driving the protection of cash in the American market.
at any time since the FDIC began reporting (in 2009), the San Francisco is just the latest city to emulate Philadelphia
levels remain significant. The issue of incorporating these with a ban on cashless retail from August. While U.S. con-
consumers into the banking system is unlikely to be re- sumers gradually embrace the convenience of contactless
solved anytime soon. Furthermore, an even larger tranche cards as they belatedly become available, cash will con-
of Americans may have a bank account but rely heavily tinue to be relevant in both online and offline retail for
on financial services outside the banking system (payday years to come – or at least until a new or existing payment
loans, check cashing and pawn stores). According to the method is truly accessible to all Americans.
FDIC, close to a fifth (18.7 percent) of American house- Well-respected executive O.B. Rawls has a demonstrated record of
holds are underbanked and commonly favor cash over
payment methods affiliated with financial institutions. success in the payments, fintech and banking sectors. As CEO and
president of iPayment, he was responsible for setting the vision and
Aside from underbanked and unbanked Americans, a strategy for the organization to achieve annual growth and exceed
range of other consumers favor cash for diverse reasons. revenue objectives. He was also critical in positioning iPayment for
For some, concerns over privacy or merchant card fraud its sale to Paysafe in June 2018, at which point he transitioned into a
can see them reaching for the greenbacks in their purse strategic advisory role and then to president of the company's North
or wallet, while others may use cash as a budgeting tech- American Payment Processing. Previously, O.B. served as senior vice
nique, as it allows them to only spend what they withdraw president and general manager, partner solutions, First Data. His distin-
from an ATM. guished career also includes executive leadership roles with Hypercom,
Caredata, Unified Merchant Services and Bank of America. Contact him
Overall, if a small, albeit shrinking, minority of Ameri- at communications@paysafe.com.
can consumers can't or don't want to fully embrace
cashless consumption, merchants and payments
companies should accommodate them. By practicing
financial inclusion, they will service all U.S. consum-
ers – and maximize their revenue and profits by not
neglecting any consumer demographics.
We’re More Than an Authorization
Of course, the in-person retail space is today only one We’re The Best Solution For You and Your Merchants
area in the American payment ecosystem. Online pay-
ments will likely one day rival traditional retail. U.S.
ecommerce retail sales are expected to rise for their
10th consecutive year in 2019 to cap $586 billion, ac-
cording to eMarketer. This growth twinned with the
FDIC data on the unbanked and underbanked sug-
gests that a significant number of Americans want to
spend online yet favor cash as a payment method. RETAIL/POS DEVELOPERS
MOBILE
Fortunately, prepaid online vouchers, online cash and
other cash replacement products allow such consum-
ers to purchase products and services online. These
products are used by a small but significant minor-
ity (6 percent) of Americans, according to Paysafe's QUICKBOOKS eCOMMERCE
2018 data. Other alternative payment methods like the
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