Being poor is more expensive, says Paypal CFO

February 3, 2019 | Investopaper
  • One billion people of the world still pay their utility bills through cash
  • 2 billion people globally are still financially underserved.

Paypal CFO, John Rainey, highlighted the importance of digital banking in the present world and emphasized that it can significantly reduce the cost of using traditional payment methods. He said that being poor is more expensive and then elaborated to justify this statement.

In doing so, he presented some important statistics related to the same issue. Statistics revealed that last year Americans paid $34 billion in overdraft fees. Similarly, 10 percent of total income was spent on interest and fees for alternative services by the average American household.

He said that to significantly reduce the cost and replace the traditional cash transaction with cashless, mobile can be very useful as around 60-70% people who are underserved financially has mobile phones in their palm. They can use mobile banking which can operate as a bank branch and reduce the cost associated with the traditional method.

Paypal is an American company operating a worldwide online payments system that supports online money transfers.






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