The Last Digital Frontier: How One Company Plans To Close A Digital Divide Through Services In Underserved Communities

To the casual eye, digital currency and on-line communications intertwine with all aspects of life: It plays a part in how we live our everyday lives. What is the digital divide? It can be defined as an “uneven distribution of information and communication technologies in society.”  

Simply put, we have become a society of digital “haves” and “have nots” in many areas. This impacts equal access to traditional financial services as well as broadband online access.

The more we move to a digital economy reliant on digital communication, the more we are fostering inequality in underbanked and underserved communities. Exacerbated by the COVID-19 pandemic, the lack of stable access and income to afford traditional financial services and broadband access has caused many to suffer.  Every part of our lives, whether referring to our children’s education, healthcare or our livelihoods and communicating with others all depend on being digitally connected.  

The 2021 Federal Communications Commission (FCC) Broadband Deployment Report found 19 million Americans still lack access to high-speed broadband service and even where high speed broadband is available, over 100 million don’t subscribe – especially those in low income, underserved communities.  Additionally, according to a 2017 FDIC survey, there are 84.8 million unbanked and underbanked individuals in the United States. That means approximately 25% of the U.S. population either does not have a bank account or has had to obtain financial products or services outside of the traditional banking system. Yet,. With big telecom finding little incentive to expand or improve services in these areas, how are residents expected to close the gap? 

Tackling Inequalities Head-on

SurgePays Inc. SURG, a Tennessee-based financial services technology and telecommunications provider, has focused on the underbanked and underserved communities for many years. The company is attacking the digital divide on two fronts.

First, SurgePays has a nationwide network of convenience stores, bodegas, tiendas and independent community markets through which it offers a variety of financial services – from cellular top-up and bill pay services to prepaid gift cards. The company, in essence, is turning these community retailers into virtual financial tech-hubs for their community.

Secondly, the company provides mobile broadband services directly to consumers under programs set up by the federal government. SurgePhone Wireless began offering government subsidized broadband in August of 2021 under the temporary Emergency Broadband Benefit Program. Then, in January 2022, the permanent Affordable Connectivity Program (ACP) was born as part of the Infrastructure and Jobs Act to ensure that all Americans would have high speed broadband access. SurgePays ramped up its sales team to address the market opportunity.

“Our goal is to make high-speed internet accessible to the underbanked and underserved regardless of income, credit or location. We believe employment, healthcare and education are directly impacted by broadband connectivity and we are all-in in helping this important nationwide population to close the digital gap,” said Brian Cox, chairman and CEO, SurgePays. 

A Hands-on, Grassroots Approach to Providing Service

SurgePays sends its sales teams into local communities to set up tents and signage and provide the free tablets and mobile broadband plans subsidized by the ACP. With boots on the ground, SurgePays has enrolled over 150,000 subscribers in the program as of July. The company’s recent acquisition of Torch Wireless, allowed it to expand the program from 14 to all 50 states – where SurgePays continues to ramp sales efforts effectively helping to chip away at the digital divide.

SurgePays' retail nationwide network of independent stores, corner stores, bodegas, tiendas, and community markets —  are often the core establishments of communities across the country whose customers represent every demographic. By providing access to fintech or financial services at these locations, SurgePays believes it is helping underbanked and underserved consumers to form new ways for consumers to participate in and compete in today’s society.

SurgePays’ blockchain-based fintech platform allows customers to walk into a store and pay their phone bills from companies like Verizon Communications Inc. VZ and AT&T Inc. T, load gift cards or purchase consumables, eliminating the hassle of going to multiple locations to manage expenses. They can even purchase digital currencies in order to send money back to families in their home countries. In turn, store owners earn directly from transactions conducted through the platform while forming strong relationships with repeat customers. 

Employees in these community stores act more as financial and e-commerce concierges than stock clerks, helping their customers to become digitally savvy and teaching them how to order goods online from merchants like Amazon with ease and efficiency.

In addition to these in community stores, with boots on the ground SurgePays has enrolled over 150,000 subscribers in the program as of July. SurgePays acquisition of Torch Wireless, greatly expanded The SurgePhone Wireless program from 14 states to all 50 states. All is made possible under the FCC’s Affordable Connectivity Program (ACP), which holds permanent status under the Infrastructure Investment and Jobs Act (IIJA). Together, these programs allow qualifying individuals to receive a subsidized tablet and internet, providing connection directly into people’s households. 

For those who don’t have bank accounts, use prepaid devices and lack proper online connectivity so many people rely on, SurgePays’ services may act as crucial tools that equip them with the digital and financial freedom to transform their lives.

This post contains sponsored advertising content. This content is for information purposes only and is not intended to be investing advice.

Featured photo by Robinson Greig on Unsplash