The LTP team recently had the pleasure of interviewing Richard Witkowski, Chief Executive Officer of HalCash. Richard shared with the LTP team news about launching cardless cash solution Pin4 in the US. Here is a transcript of the interview with Richard:
LTP: "Real-time cardless cash" is what it says on your website. You seem to hit all the right keywords! Is that your elevator pitch? How do you describe the company to those who may not be familiar?
Richard Witkowski: Pin4 is a patented cardless cash solution which enables cash withdrawals from an ATM or POS system. It has taken hold in Spain (where it began), Poland (one of the fastest-growing economies in the EU), Morocco & India over the past four years and has processed millions of transactions. Today, there are initiatives to expand the HalCash network to the UK, Mexico and several other countries. In the US, we will be launching the HalCash solution under the consumer brand Pin4.
LTP: Tell us more about the global HalCash network. What should US consumers expect when you launch in the US?
RW: In the US, we are initially launching in four key markets: New York, Los Angeles, Miami and Chicago. In 2016, we will continue our national rollout and expect nationwide coverage. We have several issuing partners ready to launch with us and Pin4 will facilitate promotional rewards fulfillment such as rebates & incentives as well as P2P domestic transfers & digital wallet withdrawals. In addition, we will also enable P2P transfers to markets, which are already enabled in Europe.
LTP: What exactly are you announcing at Money20/20? What would you like to highlight for attendees about Pin4?
RW: At the show, we will be demonstrating in real time, the speed, efficiency and convenience of the Pin4 solution. We truly believe this innovation will change the way companies offer consumer promotions. The age-old model of issuing checks, stored-value cards and the like will be transformed by Pin4’s dynamic real-time fulfillment providing instant gratification and a much improved customer experience. In addition, Pin4 provides more flexibility than current rebate products and deep, rich reporting which allows for better follow-up marketing & ROI modeling.
LTP: Who is your target customer? Any particular segment or demographic that you are focused on?
RW: We want to work with issuers (rebate, promotional, loyalty reward companies) that want to be innovative and want a better way to engage with their customers. In addition, we look forward to working with many digital wallet providers that want to offer their customers a way to access cash quickly and efficiently (without a card).
LTP: Your proposition is rather unique, but what was the problem that you set out to solve? What is the primary use case for Pin4 users?
RW: The use case is twofold. First, if you think about ATM owners, there is a limited ability to grow revenue without raising fees to consumers. Pin4 provides ATM owners with a completely new revenue stream which did not exist before. ATM owners can now benefit from P2P cash pickups, rebate/promotional payouts and other cardless cash withdrawals. Pin4 truly provides access to a new customer base, more foot traffic and more revenue. Second, if you think about businesses that want to build stronger customer relationships, Pin4 provides a way for these businesses to engage with their customers in real time to provide instant gratification. It is a win-win for everyone involved.
LTP: Are you worried about KYC issues? Is regulatory compliance a bigger burden because you are dealing with dispensing cash in a P2P proposition?
RW: We have spent a lot of time and resources researching and analyzing the KYC regulatory issues. Pin4 is a transaction-processing network and does not issue transactions itself. For P2P transactions, Pin4’s customers are banks and MSBs who are experienced in managing KYC. Pin4 provides these customers with a tool set which supports their AML and KYC compliance programs. Our solution allows for the management and reporting of each transaction processed. It also allows for transaction controls such as limitations on transaction amounts and frequency.
LTP: How do you feel about the industry as a whole? Are we moving in the right direction? People talk about "mobile-first" in everything. Do you agree?
RW: It is clear the mobile device is becoming more of a necessity and more importantly the channel of choice for consumers. We believe cash will continue to play a significant role in our society and more importantly, consumers will continue to want the ability to access cash wherever and whenever they want. Pin4 is the fastest most secure way to send cash.