Mobile Payments Solution for SNAP Authorized Farmers

The United States Department of Agriculture (USDA) Food and Nutrition Service (FNS) administers all USDA domestic nutrition assistance programs, including the Supplemental Nutrition Assistance Program (SNAP). SNAP is the cornerstone of USDA's nutrition assistance programs and is the largest program in the domestic hunger safety net. SNAP provides nutrition assistance benefits via an Electronic Benefit Transfer (EBT) card to millions of low-income people. These benefits help supplement household food budgets so recipients can purchase more healthy food.

FNS is directly responsible for the authorization and oversight of retailers who accept Supplemental Nutrition Assistance Program (SNAP) benefits. This is accomplished jointly by the Retailer Policy Division (RPD) within SNAP, and the Office of Retailer Operations and Compliance.

Currently, approximately 260,000 retailers are authorized to accept SNAP. Thousands of direct marketing farmers and farmers' markets (DMFs and FMs) apply for SNAP authorization each year. Since 2012, FNS has supported the participation of DMFs and FMs in their efforts to attract more SNAP customers. FNS has supported individual DMFs (and FMs on behalf of DMFs), which meet specific requirements, in procuring low- or no-cost wireless Electronic Benefit Transfer (EBT) point-of-sale (POS) devices through the SNAP EBT Equipment Program. FNS has also awarded grants to provide: a) an e-commerce platform that enables DMFs to accept SNAP benefits online (SNAP/Federal Nutrition Programs Participation Assistance for Farmers and Farmers' Markets), and b) a SNAP Mobile Transaction Processing Application and card reader that enable a DMF to accept SNAP by using their own smartphone as a POS device (Mobile Application Cooperative Agreement, SNAP Farmers and Markets).