Photo by Jonas Leupe on Unsplash
This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.
SurgePays Inc. (NASDAQ: SURG) is a fintech company that recently announced updating its blockchain platform to enable Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), and Dogecoin (CRYPTO: DOGE) purchases at local convenience stores, bodegas, and community shops. The SurgePays platform serves the underbanked in the community by enabling store owners to sell Bitcoin to customers-with or without a bank account or credit card, converting cash into digital currency.
The fintech operator has had a goal to be a purveyor of prepaid goods and services to the underbanked community as far back as 2006, providing customers access to everything from prepaid wireless top-ups to prepaid Amazon.com Inc. (NASDAQ: NASDAQ:AMZN) and Apple Inc. (NASDAQ: NASDAQ:AAPL) gift cards.
The company looks at its entry into the cryptocurrency space as representing not only a new product stream but also a commitment to the financial freedom of millions of people around the globe. While mining companies and other cryptocurrency operators like Marathon Digital Holdings Inc. (NASDAQ: MARA) and Riot Blockchain Inc. (NASDAQ: RIOT) are necessary for the system as a whole, SurgePays’ blockchain system is reportedly meant to potentially change lives.
The Remittance Problem People with family living in impoverished economies like Venezuela, Lebanon, and El Salvador often rely heavily on money transfers to help their loved ones out financially. More than 2.3 million Salvadorians live in the U.S., and in 2020, they sent nearly $6 billion — equivalent to 23% of El Salvador’s gross domestic product (GDP) — to family in their home country.
Despite the reliance on money transfers, some remittance service providers like Western Union Co. (NASDAQ: WU) charge large commissions on transferred sums. For households that receive payments from relatives abroad, remittances account for 50% of their overall income. El Salvador President Nayib Bukele estimates that remittance service providers charge nearly $400 million a year in commissions for their services.
SurgePays reports that its blockchain effort is more than just a means to grant U.S. citizens access to cryptocurrency; it’s an effort to help underbanked U.S. citizens and governments cut large fees when transferring funds abroad. In 2017, immigrants in the U.S. sent $148 billion to their home countries, a number that has likely increased since the onset of the pandemic. The update to SurgePays suite of fintech products and services allows consumers to convert cash into digital coins at the counter of their neighborhood convenience store, which empowers them to complete the transfer without utilizing a remittance service provider.
“When I took over as CEO in 2017, I stated that we were building an updated version of our software platform to incorporate blockchain with my mission to be the first company to practically enhance the lives of the underbanked — at the grassroots level in the stores where they shop,” SurgePays Chairman and CEO Bryan Cox said. “We are utilizing the same trusted cultural framework of the community store to be the tech-hub for underbanked neighborhoods.”
Click here to read more.
This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.