Check Cashing Market By Service Provider (Banks, Credit Unions, and Other Service Providers), By Type (Pre-Printed Checks, Payroll, Government Checks, Tax Checks, and Other Types), By End-User (Commercial, Personal, Companies Covered, and Other End-Users), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

Check Cashing Market size is expected to be worth around USD 56.4 Bn by 2032 from USD 40.7 Bn in 2022, growing at a CAGR of 3.4% during the forecast period from 2023 to 2032.

Request Covid - 19 Impact

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.

Check cashing market size has a prominent growth and is estimated to enhance during the forecast period. Money 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. Moreover, to operate their business check-cashing services produce revenue by charging a certain amount of fees. Furthermore, based on the overall risk of the transaction, the credit history of an individual, and the amount of the check, the fees are calculated. 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.

Market Scope

Services Provider Analysis

The Bank Segment Holds the Dominant Share of the Market

The bank segment acquired the maximum share of XX% of the market. 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. While credit unions tend to be more flexible and serve their memberships when it comes to the needs of the customer.

Type Analysis

Payroll Checks Dominated the Market with the Highest Revenue Share

The payroll checks accounted for the largest revenue share of XX% of the overall market. 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.

 End-User Analysis

The Commercial Segment Will Hold the Maximum Share of the Market

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 do 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.

Key Market Segments

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

Market Dynamics

Drivers

The Rise in Partnership with Different Organizations and Other Factors Drives the Market Growth

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 above-mentioned factors drive the growth of the global check cashing market during the forecast period 2023-2032.

Restraints

Lack of Ability to Recognize Potential Scams and Other Factors Restraints the Growth of the Market

Lack of ability to recognize potential scams, rise in competition from new entries, and lack of awareness toward fake transactions are a few factors that may hinder the growth of the global check cashing market.

Opportunities

Continuous Improvements in KYC Policy

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 during the forecast period 2023-2032.

Trends

Increase in the Use of Alternative Financial Services

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.

Check Cashing Banking Solution

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. Thus, this strong bank network increases demand & usage for check cash services. Therefore, the check cashing solution is estimated to enhance enormously during the forecast period.

COVID-19 Impact Analysis

COVID-19 Pandemic has had a Significant Impact on the Growth of the Market

The major branch operations are prohibited in the majority of locations and this resulted to have a positive impact on the growth of the market. Additionally, check cashing services companies offer digital options for numerous key services by providing financial solutions at home. The use of online third-party platforms and cashing a check through mobile applications are a few of the major trends that took forth during the time of the COVID-19 pandemic in the market.

Regional Analysis

North America Dominated the Global Check Cashing Market

North America accounted for the largest share of XX% of the market owing 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 2023-2032. While 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 huge growth for the market in the APAC region.

Key Regions and Countries Covered in this Report:

• 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 Share & Key Players Analysis

ACE Cash Express, Inc. Holds the Prominent Position in the Market

In the market, several key companies are taking the initiative to provide the best services to their clients. For instance, ACE Cash Express, Inc. is the largest franchiser, operator, and owner of check-cashing stores in the United States. Additionally, it offers a variety of services, such as bill payment, electronic tax, wire transfers, money orders, and small consumer loans, for enhancing its check-cashing business.

Listed below are some of the most prominent check-cashing market players.

Market Key Players

• Walmart Inc.
• Harrison Vickers
• Encore Capital Group, Inc.
• PHH Corporation
• Waterman Inc.
• Oaktree Capital Management
• Black Knight, Inc.
• Navient Solutions, LLC
• Currency Exchange International, Corp.
• Film Finances, Inc.
• Ocwen Financial Corporation
• Other Key players

Recent Developments

• 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. While, Top of Mind Networks, LLC is a mortgage industry-focused marketing automation & customer relationship management platform.

Report Scope