Interview Questions for Justin Intal, Founder and Co-CEO of Forage
Forage Transforms from Price Comparison App to EBT Payment Processor for Grocers
Forage, a U.S.-based third-party payment processor, has made a significant shift in its services. Originally a pricing arbitrage application for consumers, the company has now focused its efforts on enabling grocers to accept Electronic Benefit Transfer (EBT) transactions for online grocery purchases.
The transition was prompted by the pandemic and the surge in online grocery shopping. Forage aims to address the hurdle for SNAP EBT recipients and grocers who are eager to access the large EBT market. By allowing SNAP EBT recipients to use their benefits online, Forage is leveling the playing field, making grocery delivery available to millions more people.
To make this transformation, Forage developed or integrated payment technology that allows grocers to not only show prices but also directly accept payments at checkout, including online and in-store payments. The company partnered with EBT networks or government agencies that administer SNAP and other benefit programs to handle EBT card transactions, ensuring compliance with regulations and secure processing.
Forage expanded its target market from consumers to merchants, enabling grocers to accept EBT payments seamlessly alongside credit, debit, and other payment methods. The company built capabilities for specialized transaction types, such as SNAP EBT, which involves additional requirements like verifying eligible products and adhering to program rules.
Currently, only a small number of grocers accept EBT for e-commerce. However, with Forage's efforts, this number is expected to grow, expanding the market for SNAP recipients. SNAP EBT recipients spend approximately $200 billion on essentials each year, and allowing for online snap payments gives grocers more access to the consumer and their whole grocery bill.
Justin Intal, the co-founder and CEO of Forage, is leading the charge. The company has software to help automate the process of grocers building out their business requirement document and SNAP EBT experts to assist with setting up the system and providing a seamless API.
Despite the lack of specific details about Forage’s timeline or strategy, it is clear that such a pivot involves leveraging existing user data and infrastructure for price comparison, then investing in payment processing technology and compliance for EBT transactions to serve grocers more comprehensively.
With approximately 42 million Americans receiving EBT benefits and only about 100 retailers accepting EBT online, Forage's transition could open up a vast market for online grocery shopping for SNAP recipients. This move could bring more businesses online, helping to expand the market for SNAP recipients, particularly those who are homebound, lack transportation, or live in areas without easy access to grocery stores.
- Forage, originally a price comparison application, is now focusing on automating payment processing for grocers, particularly handling Electronic Benefit Transfer (EBT) transactions.
- The company is striving to innovate technology in the finance sector, aiming to level the playing field by making online grocery purchases accessible to millions of SNAP EBT recipients.
- Forage's new payment technology allows grocers to accept various payment methods, including EBT, thereby expanding their customer base in the food-and-drink industry.
- Leveraging existing data and infrastructure, Forage is investing in AI and technology to streamline the process of grocers accepting EBT payments, potentially serving as a catalyst for growth in the SNAP market, particularly benefiting homebound or transportation-challenged individuals.
