Online payments firm PayPal is set to launch a debit card as part of its efforts to provide affordable, convenient and secure banking services for unbanked consumers in the US.
The PayPal Cash Mastercard debit card will allow users to access the money in their PayPal account and can be used for both offline and online transactions.
It does not require any minimum balance, charges zero monthly fees and can be used to withdraw cash from ATMs across the globe, including more than 25,000 free MoneyPass machines in the country.
In addition, the firm is planning to introduce a facility for free and directly deposit of paycheque through a mobile device into the PayPal account, in order to help customers without bank accounts.
A statement from PayPal read: “While technology innovation has unlocked new and powerful financial products and services for many consumers around the globe, we have an opportunity to do more to enable underserved consumers to have more control over their financial health.
“We believe mobile technology holds the key to solving this challenge for our customers. When financial services and products are reimagined for the mobile-first customer of today, these services have the potential to become less expensive, more accessible, and much easier to use.”
According to the firm, more than 30 million people in the US are financially underserved and spend 9.5% of their income on interest and fees associated with alternative financial services.