There have been many instances of transferring value in the world. Some prove more successful than others, for obvious reasons. The release of eCash is rather intriguing, although its real success has yet to be determined.
Explaining eCash to the World
Contrary to what the name may suggest, eCash is not a new cryptocurrency or fiat currency. Instead, it is designed to facilitate mobile cash deposits. Through this service, anyone in the world will eventually be able to deposit funds into a Synapse bank account without using a routing subnet. For those unaware, the routing subnet requires account and/or routing numbers to move funds to the right person.
Through eCash barcodes – which are generated nearly instantly – converting cash into credit in a bank account becomes a breeze. This will not just serve those who have access to financial services either. It is also designed to help the unbanked benefit from financial inclusion. In the US alone, 63 million people lack this basic functionality, either due to circumstances or personal choice.
To most people, depositing cash into a bank account seems easy. At the same time, there are fewer bank branches every single month. Not all ATMs support cash deposits either, making this process more complex than need be. Tapping into the mobile space appears to be the best course of action, all things considered.
Once an eCash barcode is generated, it can be used for cash deposits. The money can be handed over at supporting retailers. Currently, this list includes brands like 7-Eleven, CVS, Rite Aid, and Walmart. There is a minimum deposit threshold of $20 to take into account.
Setting an Example for the Rest?
While the eCash service only works for holders of a Synapse account, an intriguing precedent has been created. After all, this may give other financial providers an idea of what to start building. Mobile devices play an increasing role of importance in the daily lives of consumers.
Using mobile barcodes to deposit funds into a bank account via cashiers is a solution that can make a difference. Consumers aren’t less eager to use cash, despite COVID-19. With bank branches closing, a solution needs to be offered. Concepts like eCash can go a very long way in this regard.