Purple is an innovative FinTech app specifically designed for individuals with disabilities. As one of the pioneering apps striving to make a tangible difference, Purple is dedicated to creating a more inclusive world for this special group. This article will delve into the workings of Purple, offering insights into their organization and how they're transforming banking for people with disabilities.
Tailored Mobile Banking Experience
Purple offers a mobile banking application meticulously engineered and field-tested for people with disabilities. One significant challenge for individuals with disabilities or their caregivers is managing to stay within the prescribed monthly limits for their Supplemental Security Income (SSI) benefits set by the government.
Purple's primary aim is to assist these individuals by providing an easy-to-use tool that paves the way toward financial independence.
For instance, to maintain eligibility for SSI benefits, individuals with disabilities must navigate through stringent financial limitations. They are prohibited from owning assets exceeding $2,000—or $3,000 for couples. These restrictions apply to earnings, bank savings, and other forms of income, including wages, gifts, and donations, all of which can affect the amount of SSI benefits received.
Addressing Financial Disparities
Presently, over 26% of Americans, which amounts to more than 61 million people, live with some form of disability. This demographic encounters healthcare barriers and stark financial disparities. As per the U.S. Department of Labor, only 19.3% of individuals with disabilities are employed, contrasting sharply with the 66.3% employment rate among those without disabilities.
Purple aims to navigate these 61 million Americans through the current economic and health systems.
Cost and Revenue
Purple has no sign-up fees. However, it is vital to note that specific transactions may incur fees, such as certain withdrawals.
Purple's revenue model is linked to its partnership with Mastercard and The Bancorp Bank, Member FDIC, licensed by Mastercard International. Every transaction made with the Purple debit card generates a small fee for the corporation, enabling them to sustain their operations.
How It Works
Purple, in collaboration with The Bancorp Bank, provides customers with a current account insured by the FDIC for up to $250,000. Users receive a debit card, and each purchase contributes a portion of the revenue to the Special Olympics.
A significant development in Purple's journey is the integration of a tax-advantaged savings account called ABLE, as envisioned by John Ciocca, the founder of Purple. These accounts allow individuals with disabilities to save up to $100,000 without affecting their SSI benefits, with withdrawals for qualified expenses being non-taxable.
A Brief History
Founded by John Ciocca in Bonita Springs, Florida, Purple was inspired by the real-life experiences of John's family, particularly his brother Christian Ciocca, who was born with Down syndrome. The dilemma of balancing work benefits against government assistance was a constant challenge. John's insights into these challenges, coupled with his involvement with youBELONG, a social network for people with disabilities, led to the creation of Purple—a financial platform offering affordable and inclusive services traditionally overlooked by mainstream financial institutions.
Eligibility for Usage
Purple primarily caters to individuals with disabilities, though it is available to anyone meeting specific criteria:
- Citizens or permanent residents of the United States.
- At least 18 years old.
- Holders of a valid Social Security number.
- Residents with a valid address within the US.
Importantly, using Purple's services, which include a debit card, will not affect your FICO credit score, as it is not a credit card.
