A new twist on traditional cash transactions, Cash as a Service integrates cash into your digital payments workflow to deliver sustainable revenue growth.
February 21, 2023
Mark Twain once said, “reports of my death have been greatly exaggerated.” The same could certainly be said of cash, as reports of its demise blanketed the internet throughout the pandemic.
Whether by choice or by circumstance, the number of consumers who want to pay or get paid in cash is immense. The Federal Reserve reports that 22% of adults in the US are underbanked or unbanked, and cash is an imperative for businesses that cater to these customers.
Fortunately, with Cash as a Service, businesses can integrate cash into their digital payments workflow and reporting – with none of the typical headaches of cash management.
Cash as a Service provides a valuable new twist on the timeless practice of transacting in cash, maximizing convenience for your customers in numerous ways. In our next article we’ll explore the benefits of Cash as a Service for your business. In this article, we explore how Cash as a Service can serve as the cornerstone of your repeat business strategy.
First, let’s look at how Cash as a Service works.
Your Cash Drawer in the Cloud
Cash as a Service (CaaS) delegates your cash transactions with your customers to thousands of convenient retail locations across the United States. With CaaS, your business can send instant cash payments and receive cash payments from customers without the hassle and expense of cash management or having one single dollar in your physical stores. CaaS bundles numerous service providers on behalf of your business, providing you a broader – and denser – network of transaction endpoints from a single contract.
Founded in 2019, KyckGlobal is early pioneer of Cash as a Service. CloudCash by KyckGlobal is a CaaS product that allows businesses to enjoy all the benefits of cash while sidestepping the usual friction points of legal tender. With CloudCash, your customers pick up your cash disbursement at any Walmart location, or at one of 20,000+ participating ATMs across the country – no debit card required. Your customers can also make cash payments to your business at those same convenient endpoints. KyckGlobal is constantly expanding its CloudCash network, building the value of the service to its clients with each new addition of endpoints.
Let’s look at some examples of CaaS disbursement.
Numerous specialty consumer finance firms currently leverage CloudCash to disburse unsecured personal loans to borrowers in cash. Upon loan approval, the lender uses KyckGlobal’s payment portal to send a unique code to the payee via email or text message (can also print the code on paper if needed). The payee shows the code at any Walmart to pick up their cash, which is limited to an $8,000 ceiling.
Other clients in the gaming industry find particular value in the cash payout at any one of 20,000 ATMs, in which they input the code to receive a cash payout of up to $700 in cash.
Cash acceptance is equally convenient.
Utility companies look to CloudCash to issue a payment request with a code to the customer via email or text message (can also be printed). The customer shows the code at thousands of participating retail locations like Walmart, or inputs the code at any one of 2,000 ATMs to drop off cash (no debit card required). The payment instantly posts to the customer’s account, and settles to your business’ account at the end of the business day.
Let’s examine how Cash as a Service optimizes your customer’s payment experience and drives repeat business.
Cash Remains King for a Quarter of Adult Consumers in the U.S.
While the recent pandemic accelerated the adoption of digital payments around the world, an estimated 63 million unbanked and underbanked adults in the US are still largely reliant on cash transactions. What’s more, payment methods offered by businesses that require a bank account or a minimum account balance are largely unavailable to consumers that do not enjoy quick access to traditional banking instruments. For these consumers, immediate liquidity is of tremendous value – especially when time is of the essence. It’s no stretch to assume that businesses that conduct transactions in cash will enjoy greater loyalty from customers who prefer or rely on cash.
Get a Little Closer: CaaS Closes the Physical Distance To Your Customers
It’s well-known that proximity is the most prominent factor as to whether a consumer will patronize a retail merchant. The same can easily be said for other consumer-driven businesses, and businesses that accept cash but are not using Cash as a Service must have at least one physical location where customers can go to conduct cash transactions. And unless your business is profoundly well-capitalized, it’s probably not feasible to try to close the distance between you and your customers by opening physical branches in every major city.
CaaS leverages the footprint of existing retailers and ATM operators for you to get close to your customer. By engaging Walmarts and Allpoint ATMs at retail locations like Target and CVS, KyckGlobal’s CloudCash delivers numerous CaaS endpoints within a few miles of each customer.
Take a look at the example below. A business has four physical stores at the compass points on the perimeter of metro Denver. A vast number of customers are more than 10 miles away from any store.
With CloudCash by KyckGlobal, your customers can now pick up cash at any one of 44 Walmarts and more than 200 ATMs all across metropolitan Denver. Every city resident is now just a few blocks of a cash transaction endpoint anywhere in the city.
One Good Turn: Proximity Equals Repeat Visitation
Every CaaS endpoint is located in or near high-traffic retail locations that were most likely already part of your customer’s chain of daily errands. Closing the distance between you and your customer with nearby CaaS endpoints increases convenience, thereby increasing the likelihood of repeat usage. And whether your customers are picking up a prescription at Walgreens, or doing the weekly grocery run at WalMart, they are near a CaaS endpoint. Having numerous CaaS endpoints near your customer – wherever they may go – is strong inoculation against loan repayment defaults and past-due utility bills.
All I Do Is Win: The Gaming Payout
For businesses in the gaming sector, cash transactions for consumers deliver an optimized experience that customers love. Immediate cash payout of winnings go far beyond convenience and emulate the ’casino payout’ experience for consumers, providing an instant cash reward that can be picked up at a broad network high-traffic retail locations. On the cash acceptance side, gaming apps that allow players to load their digital wallets with cash are opening their doors to a far larger customer pool – and an easily repeatable frictionless experience for customers.
Giving your customers choice in how they get paid is a powerful driver of loyalty. Including cash as one payment method among many can drive customer loyalty in an entirely new customer pool.
In our next article, we’ll look at how CaaS streamlines overhead and brings exciting new revenue strategies within reach for your business.