Paper Checks in the Construction Industry are Causing a HUGE Problem
A major challenge many construction trade workers face is being unbanked or underbanked. According to a 2015 FDIC survey, 9 million households are unbanked, and 24.5 million households are underbanked.
“Estimates from the 2015 survey indicate that 7.0 percent of households in the United States were unbanked in 2015. This proportion represents approximately 9.0 million households. An additional 19.9 percent of U.S. households (24.5 million) were underbanked, meaning that the household had a checking or savings account but also obtained financial products and services outside of the banking system.”
With 10 million Americans employed in the construction industry, we can surmise that a huge percentage of them are under or unbanked. There is no direct deposit or free way to convert their paper check to available money. Each time one of these workers cashes a check, they get charged 2–3% of the payment's total. Additionally, most of the cash checking companies do not offer late, or off hours for these services, thus, these workers need to take time off work to go and get their earnings.
Let us take a look at Oscar, our fictional framing foreman. In our scenario, he currently works for Mega Framing as an independent contractor and earns $40 per hour which comes out to be $1560 a week before taxes. He has worked at Mega Framing for eight years and is unbanked. Oscar leaves work 1 hour early each week to cash his check and loses $40 a week (for the time it takes to go cash a check). He then pays 2–3% for check cashing ($1560 x 2% = $31.20 that Oscar loses per week, per check). After only one year, making $1560 per week for 50 weeks (adjusted for vacation) Oscar is losing $3560.00 or more for check cashing and percentage fees as well as work time lost in order to cash the check.
With the BUILD1x mobile app, we can eliminate lost wages and needlessly spent money on check cashing through the implementation of peer-to-peer payments and a digital wallet. Here is where the situation gets interesting. If we multiply how much Oscar would gain by not losing time on the job each week and the cost to cash each check, Oscar saves $3560.00 per year. Multiply that by the number of underbanked workers in the construction industry and the amount is staggering:
With the BUILD1x peer-to-peer blockchain payment solution, we can add billions of dollars to the economy by streamlining peer-to-peer payments. On top of the features of instant payment and digital wallets, BUILD1x is making the whole situation even better for workers around the world, The B1x Debit Card. This card will give each worker access to their digital wallet without the fear of pesky overdraft fees or penalties. This solution will provide these hardworking people access to normal society again.
Peer-to-peer payments will save money for every “Oscar” in the industry. BUILD1x is THE pioneer of providing instant peer-to-peer blockchain payments in the construction industry.