What has held vendors back from participating in EBT payment processing despite the large transaction volume through SNAP?

Propel has done a great job of highlighting the need to build around this ecosystem and community. It’s a two fold answer: It’s a compliance issue and it’s a software issue. On the compliance side, if anyone could do it, they would’ve done it. If it was just software, then Stripe, PayPal, and Adyen would’ve done it already. The navigation of the compliance aspect is the reason it hasn’t been done before. The USDA is really concerned about fraud. Their entire 133-page guideline, they want to go line item by line item to ensure accuracy. That’s why our relationship with the USDA is important, along with the four-digit pin we created to authenticate consumers and reduce fraud.

Covid-19 led to a big push for online grocery shopping. In the past year alone, EBT grew by 60%. Biden increased it by 26% effectively back in October 2021. EBT, over the past twenty years, has grown 12.8% year over year, regardless of administration. It’s a huge market opportunity and grocers want to earn that business.