Who Are Unbanked Customers — and Why They're Your Most Loyal Shoppers

The FDIC's 2023 National Survey of Unbanked and Underbanked Households puts the number at 5.9 million households with zero bank account — roughly 14.1 million adults. Add the underbanked (those with an account but still relying on alternative financial services), and you're looking at 71 million Americans who need a place to cash a check every week or two. Most of them already shop at your store. You just aren't capturing their financial services spend yet.

Who Is Unbanked in America?

The unbanked population isn't who most people picture. It's not exclusively low-income — though income is a factor. According to the FDIC data, 11.3% of Black households, 9.3% of Hispanic households, and 2.1% of white households are fully unbanked. Households earning under $30,000 per year are unbanked at a rate of 10.5%, but even households earning $30,000–$50,000 clock in at 3.1%.

The top reasons people give for not having a bank account: they don't have enough money to meet minimum balance requirements (21.7%), they don't trust banks (13.2%), and bank fees are too high or unpredictable (12.6%). These aren't irrational reasons. A $12/month maintenance fee on a checking account with a $300 balance is effectively a 4% monthly tax on their money. Check cashing fees — typically 1.5%–3.5% per transaction — are often cheaper than the cumulative cost of maintaining a bank account they barely use.

The fastest-growing unbanked segment is young adults aged 25–34. Many of them have gig economy income — DoorDash, Uber, construction day labor — paid by paper check or prepaid card. They're tech-savvy but bank-averse. They'll use a kiosk without hesitation.

Where Do Unbanked Customers Shop?

Unbanked consumers over-index heavily in four retail categories: convenience stores, grocery stores, laundromats, and pawn shops. These are the places where daily life happens when you operate on a cash-and-check basis.

C-stores see the highest frequency. The average unbanked customer visits a convenience store 4–6 times per week — buying gas, cigarettes, snacks, phone cards, and money orders. They're already there. Adding check cashing to a c-store doesn't require attracting new foot traffic. It requires capturing more value from the traffic you already have.

Grocery stores are the second-highest touchpoint. Unbanked households spend a disproportionate share of income on groceries because they buy more frequently in smaller amounts — they don't have the luxury of a big monthly Costco run paid with a credit card. A grocery store with a check cashing kiosk becomes a one-stop financial hub: cash the paycheck, buy the groceries, pay bills at the money order counter.

Laundromats are an underrated play. The average laundromat customer spends 60–90 minutes on-site per visit. That's dwell time no other retail format matches. A check cashing kiosk in a laundromat isn't competing for attention — it has a captive audience.

Why Check Cashers Are the Most Loyal Customers in Retail

Here's what most retailers don't understand about the unbanked: they are creatures of habit to a degree that banked consumers are not.

When a banked consumer needs toothpaste, they might go to CVS, Target, Walmart, or Amazon depending on what's convenient that day. When an unbanked consumer finds a store that cashes their check reliably, quickly, and at a fair fee — they come back every single pay period. Not sometimes. Every time.

The reason is simple: trust is expensive to build and painful to lose when you're operating without a financial safety net. An unbanked worker who gets burned by a check cashing service — fees higher than quoted, a hold on their funds, rude treatment — doesn't have the luxury of absorbing that hit and moving on. They find a provider they trust and they stick with it. Hard.

Industry data from the Financial Service Centers of America (FiSCA) shows that the average check cashing customer returns to the same location 22–26 times per year. That's a biweekly visit pattern that most retail loyalty programs would kill for. And these visits aren't driven by coupons, points, or promotional gimmicks — they're driven by payroll cycles and genuine trust.

The 23% In-Store Spend Stat — and What It Means for Your Margins

Multiple studies by the Center for Financial Services Innovation (now the Financial Health Network) have documented the in-store spending uplift from check cashing customers. The headline number: customers who cash a check at a retail location spend an average of 23% more in that store on the same visit compared to customers who don't use financial services.

Think about what's happening psychologically. The customer just received $800 in cash. They're standing inside your store. They need groceries, household supplies, maybe some beer for the weekend. The friction of a separate trip is gone — the money is literally in their hand.

On a $1,000 payroll check with a 2.49% fee, you earn $24.90 in check cashing revenue. If that customer then spends $180 in-store on groceries at a 28% gross margin, that's another $50.40 in gross profit. Total gross profit from one customer visit: $75.30. Multiply that by 26 visits per year and you're looking at $1,957.80 in annual gross profit from a single recurring customer.

Now multiply that by the 40–80 regular check cashing customers a moderately-trafficked location typically builds up within 6 months. The math gets compelling fast.

How to Market to Unbanked Customers Effectively

Forget digital advertising for this audience. The unbanked population is reachable, but through different channels than you're used to.

In-store signage is king. Window clings in English and Spanish that say "Cash Your Check Here — Fast, Fair Fees" do more work than a $500/month Google Ads budget. The customer is already in your store or walking past it. You just need to tell them the service exists.

Word of mouth is the primary acquisition channel. When an unbanked worker finds a good check cashing spot, they tell their coworkers. Construction crews, restaurant kitchen staff, warehouse teams — these are tight-knit groups that share practical information. One satisfied customer often brings 3–5 more within a month.

Payroll cycle timing matters. Most payroll checks are issued on Fridays or the 1st and 15th of the month. Those are your peak days. Make sure your kiosk is fully loaded with cash before Friday morning and before the 1st. Run out of cash on payday and you'll lose customers to the check cashing store down the street — and you might not get them back.

Don't stigmatize the service. Position check cashing as a convenience, not a last resort. "Cash your check in 90 seconds" is a better message than "Alternative financial services available." Nobody wants to feel like they're using a second-class service. The kiosk itself helps here — it looks modern, it's fast, and it doesn't judge.

To see how the kiosk actually works for these customers, watch the transaction walkthrough. Want to estimate the fee income potential for your location? Try the ROI calculator.

If you're running a convenience store, grocery store, or laundromat, the unbanked population in your trade area is almost certainly larger than you think. And they're already walking through your door. The question is whether you're going to capture their financial services spend — or keep letting it walk out to the check cashing storefront down the block.

For a deeper look at how specific industries serve unbanked customers, check out our industry-specific guides.