What is agent banking? How local agents bring cash and accounts closer to people
By SendPay Business · · 2 min read
Agent banking lets a bank or mobile money provider serve customers through local shops, kiosks and petrol stations instead of branches. Customers can pay in cash, withdraw cash and sometimes open accounts at the agent. Mobile money agents in Kenya and bank correspondents in Brazil are well-known examples.
How agent banking works
- A provider signs up a local business as its agent and trains it.
- A customer hands cash to the agent, who credits their account.
- To withdraw, the customer sends money to the agent and gets cash back.
- The agent earns a small commission on each transaction.
Why providers use agents
Agents cost far less than branches and can reach villages and neighbourhoods where a branch would never pay. For customers, they're nearby, open long hours and familiar.
Risks to manage
Agents need enough cash and balance on hand, which is called liquidity. Providers also have to guard against fraud and make sure agents follow identity and anti-money-laundering rules.
Where SendPay fits
SendPay lets you launch your own money app under your brand, with GBP, EUR and USD accounts, transfers, branded Visa cards, payment links, invoices and subscriptions, powered by licensed partners. SendPay doesn't run agent networks, isn't a bank and doesn't offer lending.
Build it
Create your own financial platform.
Pick a template, name it, brand it, preview every page before you pay. Your brand, your users, your fees.
Build my platform →Questions people ask
How much float does an agent need?
Work out cash, e-float and commission with the free calculator.
Agent banking float calculator →What is financial inclusion?
Everyone having access to useful, affordable financial services.
Financial inclusion →What is a remittance?
Money a person sends to family or friends in another country.
Remittances explained →Read next
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.