Waleteros, which created a mobile banking solution for the underbanked, launched its app on Google Play this week and an iOS version is close behind. The Miami-based startup offers a way for the millions of people in the U.S. who don't use or have a bank account - of which Hispanics represent a disproportional percentage - to use their smartphones as their banking solution.
To cash checks, pay bills and send money to their families in their home countries, underbanked consumers typically go to check cashing stores and pay hefty fees. The company saw an opportunity to cut out the middleman and offer these services digitally, understanding that Hispanic consumers are adopting smartphones at a higher rate than any other demographic group.
CEO Etienne Gillard explained that after completing a short registration via the app, users receive a Prepaid Debit MasterCard with no monthly maintenance, minimum balance or overdraft fees. The card can be used to make purchases in stores domestically and internationally, online, and to withdraw money from a network of thousands of surcharge free ATMs. Through the app, users can track transactions and send money instantly to other users for a small fee.
"We are Latinos living in the U.S. and we wanted to find a way to send money for less than $10. And guess what... we did much better than that. Thanks to Waleteros, now anyone, regardless of whether you have a bank account or not, can send money anytime anywhere for only 75 cents," said Gillard.
Waleteros, now a team of six, participated in the 2014 Venture Hive accelerator class and closed a $600,000 seed round in March. The company plans to roll out an iOS version of its application next month.