The Future of Retail Check Cashing
February 25th, 2020
The term “Retail Check Cashing” refers to the operation of a check cashing service within another business. Grocery stores, convenience stores, and other brick and mortar businesses that offer this valued community service are considered retail check cashers. Convenient financial services are a natural complement to the existing products & services found in a community business. For this reason; grocery stores, convenience stores, liquor stores, and other brick & mortar businesses are prime candidates for retail check cashing.
The most impactful benefit that retail check cashing offers business owners is the creation of loyal cash-in-hand customers. By providing this vital community service where consumers are already shopping, retail check cashers are providing unparalleled convenience to time starved Americans.
Why Retail Check Cashing is on the Rise
As the effects of redlining continue to torment low income neighborhoods, financial inclusion is no exception. Many neighborhoods have next to no banks which limits the number of financial services available to the residents. In these areas, retail check cashers create financial inclusion by starting their customers week in their store (armed with cash). Which creates loyal repeat customers that no longer feel like second rate citizens and will routinely shop at your store. Our c-store partners have found that check cashers spend on average $20-50 in-store after cashing a check. With no where else to turn, these customers will not just be cashing their checks with you, but spending money on your products that otherwise may not have been sold.
According to the FDIC, the unbanked population in the United States was greater than 74 million individuals as of the 2017 census. That’s an audience equivalent to that of the Super Bowl and Black Friday, respectively. This audience is growing each and every year as more families depend on alternative banking methods. For multiple reasons, banks did not work so these people are continuously searching for a place to cash their checks. Retail check cashers have become the logical and convenient solution. Businesses offering this valued service expand their community reach far past the individuals who might typically shop at their store(s).
The demand for money services isn’t going away anytime soon. Despite the noticeable trend towards paperless transactions, the unbanked & underbanked population continues to grow year after year.
Self Service Retail on the Rise
In a study done by IoT (The Internet of things), about 73% of consumers surveyed said they prefer retail self-service technologies, such as self-checkout, over engaging with store employees. This number is up 10.6% from the previous year and based on obvious trends, will continue to rise. As consumers value their time more and more, convenience is the clear result.
Informed business owners have been answering the call. Offering increased efficiency for consumers at all levels of the shopping experience frees up employees for high-value tasks such as helping customers. By allowing store personnel to focus on customer satisfaction and support, businesses reduce overhead while increasing revenue. Just as ATM’s rebuilt the banking industry, Redbox transformed the way movies are rented, and retailers reshaped the checkout process with self service kiosks; SAM is revolutionizing the check cashing industry to the advantage of the retailer.
Your Retail Check Cashing Solution is Samco
In a time starved and financially exclusive world, consumers value the convenience of retail check cashing. Samco offers an all encompassing solution to retailers that diversifies their business and is proven to expand community reach through increased foot traffic, customer loyalty, and satisfaction.
How do we simplify the industry and eliminate the headaches? Our fully automated check cashing machine, complete compliance strategy, and growing team of check cashing experts allow you to focus on what’s important; increasing customer satisfaction & loyalty. We handle everything from 24/7 customer support to assisting with banking issues and much more.
Schedule a demo today to discover your retail check cashing potential with Samco. Our experts will help you obtain a check cashing bank account and everything else you need to attract those loyal repeat customers passing you by.