…Strangely, or so it seems to me at first glance, cash is costly, according to a study published in September by [The Fletcher School,] Tufts University. "The cost of cash in the United States is $200 billion annually", the report asserts. The Tufts researchers identify many costs to cash, with ATM and related banking fees among them.
"It's ridiculous that families, especially those who can least afford it, have to pay so much for basic check cashing services that many of us take for granted", Mike Sievert, T-Mobile chief marketing officer, says. "Mobile Money levels the playing field to put money back in consumers' pockets for important things -- like bills, groceries or vacations. The typical household using a check casher to cash their paychecks could save about $1,500 per year, and customers tired of getting hit with overdraft fees can switch and save an average of $225 a year".
"The cost of cash is higher for poor and unbanked Americans than for other groups", Tufts researchers Bhaskar Chakravorti and Benjamin D. Mazzotta write. "Poor Americans who lack access to formal financial institutions carry larger amounts in cash and pay the most fees in aggregate terms for cash access transactions. Well-banked wealthier Americans, on the other hand, report carrying far lesser amounts in cash, traveling less to access cash, and pay few, if any, fees". T-Mobile intends to solve the fee problem.
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