Did you know that worldwide there are approximately 2.5 million people who do not have a formal account at a financial institution? This analysis comes out of a report published by the World Bank that goes on to say, that while most of these people come from poor undeveloped countries, there is still a significant proportion that have money, but don’t use a formal bank. This is because they don’t trust their banking institutions or want to avoid costs and administrative hassles. With this profound payment barrier, we look at a number of alternative payment options that can bring these potential traders into the Forex industry.
Bitcoin is the most revolutionary as it provided the first “cryptocurrency”. This peer-to-peer payment service operates without ties to central banks, gold standards or existing currencies. Using a highly sophisticated cryptographic security system, it is able to process transactions efficiently and inexpensively. Bitcoin holders can make and receive payments over the Bitcoin network without needing a credit card, let alone a bank issued debit card. Additionally it offers greater privacy and all at no cost. To participate you need to download a free Bitcoin digital wallet and access merchant resources at Bitcoin.org.
PayPal is the largest singular alternative payment network. It is the 800 pound elephant in the online payment room, with 137 million active registered accounts, available in 193 markets and 26 currencies. By creating a Paypal account, traders can easily make and accept payments, while brokers can send invoices and receipts. More recently, it has the option to go mobile with its plug-in card reader.
Price: 2.9% + $0.30 on each transaction
Dwolla is a payment network that does not have any reliance on a credit card. Both private individuals and businesses are able to send, request and receive money over its network. In the absence of being able to connect to a bank account, you could connect via a transfer payment system like Western Union, where once loaded you can move money at exceptionally good rates. For brokers, it is a particularly easy option to set up, all you need to do is create a “Pay With Dwolla” CTA button on your website.
Price: $0.25 per transaction, or free for transactions $10 or less.
V.me and MasterPass, provided by Visa and Master Card respectivly, are great online payment tools that simplify the checkout experience. Once coded in a few lines on to your webpage, clients select the “Checkout with V.me” or “MasterPass” button and then go through the steps to process their payment with a registered username and password. Both of these online payment tools accept any major credit card or prepaid charge card.
Price: Contact each one for their pricing arrangements
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Forex Trading for the unbanked
