About Check Cashing Service
Check cash service offers a way to get access to an individual’s money without a bank account. These services allow anyone to cash their paycheck and other types of checks in exchange for a fee. They are part of the financial services system for millions of Americans who are unbanked or underbanked. People who can’t obtain a traditional bank account or who need fast, convenient cash may use a check cashing service to access the money in their paychecks. Check-cashing services are not banks. They are financial services providers that offer a range of simple transactions and consumer finance products. According to Financial Services Centers of America (FiSCA), the industry trade group representing these companies, there are approximately 13,000 neighborhood financial services centers in the United States, providing an estimated USD 106 billion of financial services per year to around 30 million customers.
Attributes | Details |
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Study Period | 2018-2030 |
Base Year | 2023 |
Unit | Value (USD Million) |
The companies are exploring the market by adopting mergers & acquisitions, expansions, investments, new service launches, and collaborations as their preferred strategies. The players are exploring new geographies through expansions and acquisitions to avail a competitive advantage through combined synergies. Analyst at AMA Research estimates that United States Players will contribute the maximum growth to Global Check Cashing Service market throughout the forecasted period. Established and emerging Players should take a closer view at their existing organizations and reinvent traditional business and operating models to adapt to the future.
Walmart Inc (United States), Navient Solutions LLC (United States), Ocwen Financial Corporation (United States), Encore Capital Group Inc. (United States), Black Knight Inc. (United States), PHH Corporation (United States), Oaktree Capital Management (United States), QCHI (United States), Film Finances Inc. (United States) and Currency Exchange International Corp (United States) are some of the key players that are part of study coverage. Additionally, the Players which are also part of the research coverage are Harrison Vickers (United States) and Waterman Inc. (United States).
Segmentation Overview
AMA Research has segmented the market of Global Check Cashing Service market by Type (Check Cashing, Money Orders, Electronic Bill Payment and Small Loans), Application (Commercial and Personal) and Region.
On the basis of geography, the market of Check Cashing Service has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Taiwan, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico). If we see Market by Type of Checks, the sub-segment i.e. Pre-printed Checks will boost the Check Cashing Service market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth.
Influencing Trend:
Increase in Partnership with Different Organizations
Market Growth Drivers:
High Number of Non-Bank Population and Growth in Shift of Population from Bank to Non-Bank Sector, Prepaid Debit Cards
Challenges:
Lack of Awareness Toward the Fraudulent Transactions and Lack of Ability to Identify Potential Scams
Restraints:
Check-Cashing Services can have Some High Costs and Possible Downsides and Increase in Competition from New Entrants
Opportunities:
Continuous Improvements in the Know Your Customer (KYC) policy and Launches of New & Advanced Software for Cashing Systems
Market Leaders and their expansionary development strategies
In February 2020, Financial Services Superintendent Linda A. Lacewell has announced that the Department of Financial Services (DFS) will take enforcement action through administrative proceeding to revoke the licenses of Kayla Check Cashing Corp., South Island Check Cashing Corp., East Island Check Cashing Corp., Bay Shore Check Cashing Corp., and Brentwood Check Cashing Corp. and impose civil penalties for alleged violations of New York Banking Law and Federal laws and regulations.
In January 2021, Venmo launched a new check-cashing feature, waives the fees for stimulus checks. This feature allows the users to cash the paper checks within the app. This check capturing feature has allow users to quickly cash the checks without needing to visit a physical cash checking location or worrying about the long queues at the banks.
Key Target Audience
Check Cashing Service Providers, Research Organizations and Consulting Companies, Potential Technology Investors, Regulatory & Government Bodies, Downstream Vendors, End Users and Others
About Approach
To evaluate and validate the market size various sources including primary and secondary analysis is utilized. AMA Research follows regulatory standards such as NAICS/SIC/ICB/TRCB, to have a better understanding of the market. The market study is conducted on basis of more than 200 companies dealing in the market regional as well as global areas with the purpose to understand the companies positioning regarding the market value, volume, and their market share for regional as well as global.
Further to bring relevance specific to any niche market we set and apply a number of criteria like Geographic Footprints, Regional Segments of Revenue, Operational Centres, etc. The next step is to finalize a team (In-House + Data Agencies) who then starts collecting C & D level executives and profiles, Industry experts, Opinion leaders, etc., and work towards appointment generation.
The primary research is performed by taking the interviews of executives of various companies dealing in the market as well as using the survey reports, research institute, and latest research reports. Meanwhile, the analyst team keeps preparing a set of questionnaires, and after getting the appointee list; the target audience is then tapped and segregated with various mediums and channels that are feasible for making connections that including email communication, telephonic, skype, LinkedIn Group & InMail, Community Forums, Community Forums, open Survey, SurveyMonkey, etc.