Appetite for cash remains strong: Behind Green Dot and Paymentus’ cash bill pay partnership

Payments systems continue to evolve by providing increasing convenience to consumers through digital solutions. Yet, despite the increased use of electronic payments around the world, there is little evidence of an outright shift away from cash.

As the interest in digital payments continues to grow, including in relatively newer areas like BNPL and cryptocurrency, it is presumed that the use of cash is unlikely to ever return to its pre-pandemic levels. However, cash will most likely continue to have its place in payments.

Despite the omnichannel use of digital payments that continues to grow over time, cash still accounts for 20% of overall transactions. Moreover, that percentage jumps to 60% for unbanked consumers, signifying the importance of cash services and access, especially among the unbanked and underbanked.

Underserved and unbanked individuals rely on alternative service providers like check cashing centers for financial transactions. Additionally, a significant portion of the population is compensated with cash and isn’t entirely comfortable with getting rid of it – desiring the flexibility of paying with cash as an option.

In a move to broaden its cash bill pay capabilities and offer customers the freedom to choose their preferred payment method, Paymentus, an electronic billing and payments company, has forged a partnership with Green Dot Network.

By connecting Paymentus to Green Dot’s network, companies can accept cash bill payments from their customers at some 90,000 retail locations. As the Green Dot Network reaches 96% of the US population, it provides broad access to cash services for people who need them.

“Expanding the Instant Payment Network through our Green Dot partnership and their retail network advances this mission by enabling billers to better serve the millions of consumers who pay in cash out of necessity or preference,” said Nicole Haskins, Vice President, Electronic Billing and Payment Solutions at Paymentus. “We are extending the reach of billers directly into the communities they serve while transforming cash bill pay from an analog process to a digital transaction that moves at speed without sacrificing integration, reporting or posting, or requiring additional technology support by the billers.”

Green Dot is a fintech and FDIC-insured branchless bank. The FDIC protects consumers against loss if their bank or thrift institution fails. The Green Dot Network, powered by Green Dot, provides a broad spectrum of solutions that extend from cash to digital. 

In 2001, Green Dot pivoted to serving unbanked and underbanked communities by offering products and services that are focused on the segment of the population that tends to use cash for more purchases than the average American.

Particularly in times of financial uncertainty, cash flow remains top of mind for underserved consumers that seek simple and easy ways to make bill payments for loans, utilities, insurance, and other recurring services.

“Traditional bank branches are increasingly closing, creating ‘banking deserts’ in communities that still desperately need access to cash and financial services. We believe it is critical that convenient and accessible payments and cash services are available for all consumers, particularly those who need it most,” said Jamison Jaworski, GM/SVP of Retail and Green Dot Network.

Today, tools like digital savings vaults and other budgeting features in banking apps continue to be a popular money management option for people who want to be more in control of their finances.  However, one app or online banking service doesn't suit all consumers – particularly those who still tend to operate in cash.

As fraud remains a key challenge facing the payments industry, Green Dot has invested heavily to mitigate cybersecurity risks by identifying, blocking, and addressing fraudulent activity on its network.

Going forward, the omnichannel approach and blending of services to better serve the customer will likely continue to be a trend this year and beyond. The way consumers send, spend, and manage their money will continue to evolve, and Green Dot plans to ensure these services are accessible to all its consumers regardless of their financial circumstances, according to Jaworski.

By embracing fully integrated omnichannel billing and payments solutions, billers can ensure a consistent experience and realize the operational benefits of data-derived insights. This in turn can accelerate billing and payment performance, drive down costs, and improve customer satisfaction. 

“2023 will be the year that billers and financial institutions can fully realize the benefits of omnichannel solutions. Many billers have been chasing digital transformation by adding disparate systems, tools, and analytics platforms,” said Paymentus' Haskins. "This piecemeal approach actually creates a multichannel system that can compound problems, rather than a true single-source holistic solution that supports digital transformation goals and enhances the customer experience."