In a previous blog
, I wrote that I thought someone (like Paypal) should create a service that does something like this:
You bring money to a convenience store, like 7-11, and deposit it into your account.
You then use that money online for purchases, or alternatively, use your cell phone to make purchases from live retailers electronically.
This gives people without bank accounts (which is 1 in 13
American families) access to the electronic transaction world those of us with such accounts take for granted. Meanwhile, a whopping 1 in 4
US households rely primarily on services like Payday lenders and Pawn Shops for financial services.
It turns out, there's a company doing most of this already, called Kwedit
. The stealthy (?) thing about this, at the moment, is that it's exclusively operating in the world of online game payments. They've gotten press in places like the the Colbert Report
, as a way of teaching kids about credit (for good or ill). I suspect, though, that once you get this model in place virtually, it's just a hop, skip and a jump to extending it to other online transactions. Could this be a very big thing down the road?