Bitcoins; a solution for the unbanked


Bitcoin, Coin, Money, Electronic Money

The banking world has suffered an approach to the internet world. Change is coming, although slow and painful. This is because people are already familiar with the old system, such as banking. But for the unbanked, the old system is not very helpful. Therefore, we moved forward by accepting payments that worked well in the physical world but have failed on the internet. The time to change is usually when the return on investment justifies the outcome.

Mobile Money

T-Mobile launched a program called Mobile Money in January which acts as a prepaid Visa debit card attached to a T-Mobile account. The financial institution in the background is Bancorp.
After a big underserved segment of the American Populace, Mobile money is becoming bigger and bigger within the phone industries. The way this w3orks is that a customer can add money to their phone account at the correlating stores or link their paychecks to direct deposit into their accounts. The goal is that people will be able to manage their accounts and pay bills from their smartphones through app or web.
Carriers such as Sprint’s Boost Mobile were successful at launching similar services of banking known as Mobile Wallet which held higher transaction fees.
Sprint’s competitor, T-mobile, offers lower rates and flexible prepaid services for those customers who are without access to standard banking protocol. The flexibility makes the service stand out from Isis (the mobile payments operator T-mobile founded alongside AT&T and Verizon) because while Isis aims to keep customers using their phones in replacement of a debit or credit card, Mobile Money is designed to give customers access to these cards from the start.

Cash

Moving this idea of mobile based products or a spending card has proven to be a challenge. Cash has surprisingly remained significant to all segments as consumers prefer the perceived convenience of money rather than the alternatives. Mobile Money’s goal is to make mobile payment products faster and more convenient than what exists today and unfortunately, this is not yet the case.
The antidote to the problem is Bitcoin. Bitcoin is a cash equivalent system online or on apps that easily transmit payments via phone or Internet.

Bitcoin

Bitcoin is essentially internet money. Helping the unbanked, an agency accepting Bitcoin or Mobile Payments, eChecks and Debit cards prove to provide one more way to accept a payment that the customer can transact.
There are many cases that this not yet known way of internet money has been received and customers are completely oblivious to it. They may receive Bitcoins as a gift and be ignorant to the fact that they can make payments with them because of the lack of knowledge on how to trade them for dollars. As a solution to this problem, the logic would be to create a “Bitcoin Accepted Here” account. For those who do not have this c\account, currently Coinbase.com as well as Bitpay.com have a system where you can exchange Bitcoins for cash that are deposited into your account.
This world is evolving into a more technologically based world where there are 6.5 billon cell phones and only 1.5 billion bank accounts. In order to help the unbanked, it is time to adapt.


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