In a world where access to financial services can often feel like an exclusive privilege, a Lebanese startup, Purpl, has taken on the mission to change the game. Purpl is more than just a financial service provider; it’s a digital wallet with a mission to connect, empower, and enable financial access for all, especially those who are unbanked or underbanked. Let’s explore how Purpl is making banking infrastructure available to the unbanked population in Lebanon.
The Unbanked Challenge
Before we delve into how Purpl is solving this challenge, it’s crucial to understand who the unbanked are and the obstacles they face. The unbanked are individuals who do not have access to traditional banking services, such as savings accounts, loans, or credit cards. This lack of access is often due to various factors, including poverty, geographic isolation, and a general distrust of formal financial institutions. In Lebanon, the number of the unbanked increased drastically after 2019, when the country faced the worst economic crisis. It is estimated that less than half of the Lebanon population have at least one bank account (44.8% in late 2020).
Purpl’s Game-Changing Partnership
Purpl’s approach to addressing this issue is built on a powerful partnership with Banque Libano-Française. By teaming up with one of Lebanon’s banks, Purpl gains access to established banking infrastructure and the ability to extend it to those excluded from the traditional banking system. Through this first of its kind partnership, Purpl was able to offer a seamless and cost-effective solution, reducing the barriers and costs associated with receiving money from abroad.
Serving the Unbanked and Underbanked
Purpl today gives the Lebanese population access to more than 100 Banque Libano-Française ATMs all over Lebanon. Through this ATM network, Purpl users can cash out the money they receive from abroad within seconds and with ZERO cash out fees. The best part is that they don’t need a card or a bank account to do so. This feature empowers unbanked individuals by providing easy access to their funds, even if they don’t have a traditional banking relationship.
Moreover, Purpl is soon launching Purpl Pay, a groundbreaking service that allows users to make payments at over 2,500 merchants across Lebanon, using their phones. Instead of using a card or carrying cash, users simply need to scan a QR code provided by the merchant, and the transaction is automatically completed. This innovative solution simplifies the payment process and makes it accessible to many people who may not have access to traditional banking products.
The Impact on the Unbanked and Underbanked
The services offered by Purpl go beyond convenience; they hold the potential to revolutionize the financial landscape in Lebanon. By providing access to a broad array of financial services, Purpl is breaking down barriers and offering a pathway to financial inclusion for the unbanked.
Access to banking infrastructure is vital for the underbanked and unbanked as it provides essential financial services, security, and opportunities. It allows individuals to save, access credit, and make transactions more affordably. Banking infrastructure fosters financial inclusion, enabling participation in the digital economy, promoting financial literacy, and contributing to economic development, ultimately empowering individuals and communities to improve their financial well-being and build a more stable and prosperous future.
Conclusion
Purpl’s mission to connect, empower, and enable financial access for all is not just an aspiration but a reality. By offering a range of services like global remittances, cash withdrawals, and the innovative Purpl Pay, they are making significant strides in bringing banking infrastructure to the unbanked. With their innovative solutions, Purpl is helping to bridge the gap and create a more financially inclusive world for everyone, especially those who need it most.
Written by: Mayssa Abillama
