Future Business Warehouse

Media that introduces services that provide emotion and convenience to the world that arise from new technology

Zero interest payroll prepaid service
Reasons for tip revenue

-Introduction of overseas Fintech ventures (USA)-

Prepaid payroll service "earnin" is growing rapidly in the United States. It is a unique business model with zero interest and only chips from users as a revenue Despite the unique American cultural background, Arnin is extremely good at designing the user experience. The method of building a business based on culture and values can be used as a reference here in Japan as well.

Targets are not limited to payday loan users

American payday is generally once every two weeks. Some may envy you, but many low-income Americans say they don't have enough money until the next payday, even every two weeks. And say what to do in such a case, one is, the consumer "payday loan" finance utilized. Payday loan (small short-term loan loaned with the next salary as collateral) stores are ubiquitous in the city, with more than 10 million users. On the other hand, the interest rate annual rate for very high as several hundred percent, without the use of payday loans, capital from the borrow in advance and relatives from the workplace finance in communication, payday Wait 's people and to survive, from where the funds borrowed Some people can't do it and endure it until the payday.

Under these circumstances, Arnin, a new service for all those who have trouble with cash flow before payday, was born. For Arnin, when a user applies on the smartphone app, in principle, the salary will be paid in advance to everyone for the first time. What is unique is that it does not collect interest rates or fees from users. Instead, the user's voluntary "tip" is the source of income.

Needless to say, in the United States, the culture of tipping when receiving services at restaurants and hotels has taken root. Instead of being obliged to say "I'm sorry for the other person," they tip as a matter of course. In that sense, it can be said that Arnin, which uses revenue But at the same time, many people should think: "Is it really possible to make a business with just chips?" Let me introduce how Arnin's business was established.

A community connected by chips

Let's take a closer look at how Arnin works. Arnin acquires user information such as work place via the app, and directly accesses each user's bank account to check the soundness of cash flow from the status of deposits and withdrawals. Furthermore, the attendance status of users is estimated from GPS, and each user profile is analyzed by AI to set the maximum amount of advance payment.

The user will then select the tip amount for the service when applying for prepaid. Tipping is optional, and of course you can choose not to pay, but it seems that almost every user is choosing a tip for a few dollars.

revenue model of the sexuality theory of chips established? There is a big background that the tip culture has taken root in the first place, but Arnin is also very skillful in UI / UX design that pays tips. Arnin embodies the app in a community where chips help each other. Arnin has formed a community called "Pay it Forward", where the name of the user who paid the tip is displayed on the top screen, and the user who made up for his top shortage at the time of withdrawal. Is displayed. Tipping has a quote for the withdrawal amount, and if it is less than that, it is reported that the shortfall was covered by "someone" who paid a lot of tips. That's why you too, let's connect the tip to someone next.

In addition to the original tip culture, it may also support the Christian teaching of "love your neighbor." Americans also tend to be less willing to help someone they don't know or to make money for someone, such as a donation. In the end, the money that goes out may not be much different from the interest rate on a payday loan, but with a tip you can comfortably pay.

Quote: From the "Earnin" WEB site (https://www.earnin.com/)

Thinking about business from culture and values

Born in San Francisco in 2014, Arnin has cultivated users mainly through advertising and word-of-mouth on social media. In the United States, there are increasing opportunities to be featured in TV news and media, and YouTuber, which publishes the usage status of Arnin, is appearing, and it is rapidly gaining citizenship. Given the size of the payday loan market, there is great room for growth in the future.

However, it is unknown whether Arnin's business model will work in Japan as well. It may be considered difficult in a country without a tip culture. Still, Arnin's service design dexterity has much to learn. One of Arnin's success factors is that it fits well with American culture and values and embodies a mechanism that allows users to tip comfortably. Even if you pay the same amount, do you pay it as compulsory interest or as a tip in good faith? The user experiences of the two are almost the opposite.

Another lesson we can learn from Arnin's success is the effectiveness of building a business from the culture, values and spirit of the country. As for Japan, new business ideas should be hidden in things such as the spirituality peculiar to Japanese people and changes in lifestyles and values centered on young people. If you look around yourself from a different perspective, you may discover something new.

* The copyright of articles and images in this content belongs to GMO Payment Gateway, Inc.