The unbanked are not poor; but poorly serviced.
Edwardsville, IL (PRWEB) October 02, 2015
ePlata announced today that it would raise funds via a rewards crowdfunding campaign on Indiegogo to complete the development of its digital financial empowerment technology. ePlata’s goal is to raise up to $100,000 on Indiegogo to fund the completion of the beta version of the platform. This beta platform will be used for ePlata’s pilot program, which will be rolled out with one of Mexico’s most prominent companies. With an elite team, technology and network, ePlata bridges the unbanked sector in Mexico and the United States to one another, merchants and government services by incentivizing the sources of income to provide their beneficiaries a safer, low-cost and transparent digital solution.
“We are ecstatic about the opportunity to shine a bright light on the financial marginalization of the rising middle class. Globally, 2.5 billion adults and 250 million adults in Latin America are overwhelmingly underserved and have been ignored by both traditional financial institutions as well as digital financial institutions,” commented Jeff Cooper, ePlata Chief Executive Officer. “It is hard to believe so many are excluded, despite the astonishing estimate that this segment represents more than $13 trillion in purchasing power. Two things we know for certain are that these people are not poor, they are poorly serviced.”
Although Mexico is the second largest economy and one of the most populated countries in Latin America, 60% of the Mexican population prefers to pay for their food, electricity, water, gas and transportation in cash because they perceive that they can control their expenses better. The unfortunate truth for people functioning in a cash-based system means they engage informal mechanisms and inevitably face higher fees and safety issues to process and/or transfer funds. Despite the fact that the 65 million Mexican Internet users spend an average of nine hours a day online or that Mexico boasts an 87% mobile penetration rate, less than 8% of the population in Mexico buys online.
Initially, ePlata will target its efforts in Mexico; however, the overall Mexican market for ePlata’s services, particularly the unbanked population, also includes the approximately 11.4 million Mexican expatriates living outside of Mexico. In the first three months of 2015 alone, Mexicans living in the United States sent $5.7 billion in remittances back home, making Mexico, on a per person basis, the country receiving more worker remittances than any other major country in the world. With an average between $280 and $370 every month sent in cross-border transfers, remittances represent the second-largest contribution to Mexico’s foreign income, trailing only the oil industry. The amount is equivalent to 2.5% of Mexico’s gross domestic product.
ePlata is developing a multi-currency wallet and payment ecosystem that eliminates the predatory rates charged to the unbanked, thereby making sure that both earners and recipients keep more of their money. Moreover, with the guidance of former national security and financial counterterrorism advisors, ePlata is designed to mitigate the security threats arising from cash transactions as well as provide governments better tools to accurately track financial flows and combat corruption, money laundering and financial terrorism.
“With strong public and private relationships in the United States and Mexico,” stated Cooper, “we will incentivize the sources of income to use ePlata as a voluntary payroll benefit and provide employers and governments the tools required to transfer payroll, public assistance payments and other funds directly into their constituents’ digital account.” To Cooper, “putting less money in the hands of intermediaries and more in the pockets of consumers and merchants is the only way to truly set people’s money free.”
For more information, please visit our Indiegogo campaign at http://igg.me/at/eplata or our website at ePlata.com or join ePlata on Facebook at facebook.com/ePlataCom, follow on Twitter @ePlataCom and/or post at @ePlataCom on Instagram. If you would like to schedule an interview, please email klakin@ePlata.com.