New York, July 17, 2023 (GLOBE NEWSWIRE) -- The Global Check Cashing Market size accounted for USD 40.7 Bn in 2022. It is projected to surpass around USD 56.4 Bn by 2032, and it is poised to reach a CAGR of 3.4% from 2023 to 2032.
Check-cashing services deliver a way to get access to money without a bank account. In exchange for a fee, these services allow you to cash your paycheck and other types of checks. They are financial services providers that offer a range of simple transactions along with the consumer finance products, such as money orders, small loans, electronic bills, money orders, and check cashing.
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Key Takeaway
- By service providers, banks lead the global check cashing market by covering major revenue share in the account.
- By type, payroll checks dominated the segment by securing a major share of the account.
- By end-user, the commercial segment holds most of the share to dominate the segment in the global cash checking market.
- North America held a revenue share of approximately 33.8% in 2022
- Asia Pacific market is anticipated to grow significantly over the forecast period.
To operate their business, check-cashing services produce revenue by charging a certain amount of fees. Furthermore, the fees are calculated based on the overall risk of the transaction, the credit history of an individual, and the amount of the check. The increasing number of technological advancements in banking sectors, strategic initiatives taken by the leading players, and increasing adoption of alternative financial services are the few factors that propel the growth of the global check-cashing market.
Factors Affecting the Growth of the Check Cashing Market
Several factors can affect the growth of the check cashing market. Some of these factors include:
- High Number of Banking Population: the number of individuals with no bank account is quite high across the world. If these individuals have to convert their checks into cash, then they have to opt for check cashing. This is boosting the growth of the global check cashing market.
- High Demand for Instant Cash: The demand for instant cash is quite high in today’s world. And to meet this demand, many individuals are opting for check cashing in order to fulfill their needs. This is positively affecting the growth of the global check cashing market.
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Top Trends in Global Check Cashing Market
Banks are understanding customer preferences and growing exponentially and also, and demand for check cashing services continues to grow in the market. Furthermore, customers are using pawn shops, payday lenders, and check cashing to meet their needs & avail of instant cash. For instance, around 9 million unbanked households in the US use check cashing services to supplement their current financial services options, and this will enhance the growth of adoption & usage of alternative financial services.
Moreover, the two key banking solutions that support cash checkers with the help of POS check cashing systems and check cashing software are the increase in national check & currency. Additionally, national check cashers in the market have a strong network of check cashing banks, and they provide reliable and real bank account services to their clients.
Market Growth
Check cashing market size has a prominent growth and is estimated to enhance during the forecast period. Money Transfer services or check cashing businesses help customers with easy access to turn their checks into cash. Additionally, this process can be performed without having dependence on the bank account. This is fueling the growth of the global check cashing market.
Regional Analysis
North America dominates the global check cashing market by covering a significant revenue share of 33.8%. This growth in North America is due to the presence of leading market players and the increasing adoption of alternative financial services. It is expected that the dominance of the region will likely to be continued during the forecast period of 2023-2032. However, Asia Pacific is estimated to have a significant growth rate over the forecast period.
A few factors, such as the increasing penetration of leading AFS service providers and the rising numbers of unbanked individuals in the region, will likely create massive growth for the market in the APAC region during the forecast period.
Competitive Landscape
The competitive landscape of the market has also been examined in this report. Some of the major players include Encore Capital Group Inc., PHH Corporation, Oaktree Capital Management, Black Knight Inc., Navient Solutions LLC, Currency Exchange International Corp., Ocwen Financial Corporation, etc.
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Scope of Report
| Report Attribute | Details |
| Market Value (2022) | USD 40.7 Bn |
| Market Size (2032) | USD 56.4 Bn |
| CAGR (from 2023 to 2032) | 3.4% |
| North America Revenue Share | 33.8% |
| Historic Period | 2016 to 2022 |
| Base Year | 2022 |
| Forecast Year | 2023 to 2032 |
Market Drivers
Numerous factors are responsible for the expansion of the market. They are- the rise in partnerships with various organizations, prepaid debit cards, growth in a shift of population from bank to the non-bank sector, and the huge number of non-bank population. All the factors are anticipated to drive the growth of the global check cashing market over the forecast period of 2023-2032.
Market Restraints
The global check cashing market faces numerous restraints that impede its expansion and potential. First, the increasing adoption of digital payment systems and electronic transactions has reduced paper check usage and, consequently, the demand for check cashing services, thus diminishing overall demand.
Government authorities' stringent regulatory requirements and compliance measures aimed at combatting money laundering and fraud also pose difficulties for check cashing businesses, leading to increased operational costs and decreased profitability. The emergence of alternative financial service providers offering cost-effective and convenient solutions like online banking and mobile payment apps is also threatening the growth prospects of the global check cashing market, impacting its expansion and profitability.
Market Opportunities
The continuous improvements in KYC policy lead to prevent money laundering as well as other anti-social activities. It also brings investments along with stability to the country and makes the financial framework less risky and more trustworthy. Additionally, there is a decrease in uncertainty which allows institutions to lend more to customers by increasing their profits. Furthermore, launches of new & advanced software for cashing systems are estimated to provide huge opportunities in the market over the forecast period.
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Report Segmentation of the Check Cashing Market
Service Provider Insight
Banks dominated the service provider segment by covering the major revenue share in the account. Banks are mostly profit institutions. They tend to offer low-interest rates for loans. Mostly they have higher fees than credit unions. Prominent banks typically have more locations to provide direct service to customers. At the same time, credit unions tend to be more flexible and serve their memberships when it comes to the needs of the customer. These key factors are boosting the growth of banks in the service provider segment of the global check cashing market.
Type Insight
The payroll check secures a majority of the share in the type segment of the global check cashing market to lead the segment. It is a type of check which handles employee income payments. Payroll checks are usually given on a scheduled basis, like within a month or one or two weeks. The employees can also have the right to choose to enroll the payment in direct deposit so that their payment deposits directly into their bank account rather than getting a physical check. This is propelling the growth of the payroll check-in type segment of the global check cashing market.
End-User Insight
The commercial segment holds the largest share of the market. There should be a proper way for businesses to accept payments from customers. Customers can make their payments through checks, cash, credit cards, and debit cards. When a customers pay through a check, then it is called a commercial check. Here, the name on the check was not of any particular person but the name of a company.
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Market Segmentation
Based on the Service Provider
- Banks
- Credit Unions
- Other Service Providers
Based on Type
- Pre-Printed Checks
- Payroll Checks
- Government Checks
- Tax Checks
- Other Types
Based on End-User
- Commercial
- Personal
- Companies Covered
- Other End-Users
Key Regions
- North America
- The US
- Canada
- Mexico
- Western Europe
- Germany
- France
- The UK
- Spain
- Italy
- Portugal
- Ireland
- Austria
- Switzerland
- Benelux
- Nordic
- Rest of Western Europe
- Eastern Europe
- Russia
- Poland
- The Czech Republic
- Greece
- Rest of Eastern Europe
- APAC
- China
- Japan
- South Korea
- India
- Australia & New Zealand
- Indonesia
- Malaysia
- Philippines
- Singapore
- Thailand
- Vietnam
- Rest of APAC
- Latin America
- Brazil
- Colombia
- Chile
- Argentina
- Costa Rica
- Rest of Latin America
- Middle East & Africa
- Algeria
- Egypt
- Israel
- Kuwait
- Nigeria
- Saudi Arabia
- South Africa
- Turkey
- United Arab Emirates
- Rest of MEA
Market Key Players
- Encore Capital Group Inc.
- PHH Corporation
- Oaktree Capital Management
- Black Knight Inc.
- Navient Solutions LLC
- Currency Exchange International Corp.
- Ocwen Financial Corporation
- Other Key Players
Recent Development of the Check Cashing Market
- In August 2022- Walmart declared that it would likely acquire Volt Systems. It is a product tracking software and vendor management software company. It has also announced its partnership with Paramount to provide Paramount+ content to its Walmart+ subscribers in a bid to better compete with Amazon.
- In March 2021- Black Knight acquired broker-specific technology named NexSpring Financial, LLC and Top of Mind Networks, LLC. NexSpring Financial, LLC, delivers performance data and analytics on agency-backed securities. At the same time, Top of Mind Networks, LLC is a mortgage industry-focused marketing automation & customer relationship management platform.
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