A more thorough explanation:

A nondepository provider of financial services is a type of business that offers various mechanisms for people to make payments or obtain currency or cash in exchange for payment instruments. These businesses do not accept deposits or make loans.

Examples of nondepository providers of financial services include:

• Money transmitters
• Payment instrument sellers
• Stored-value providers
• Check cashers
• Currency exchangers

Money transmitters are businesses that allow people to send money to others, either domestically or internationally. Payment instrument sellers offer prepaid cards or other payment instruments that can be used to make purchases. Stored-value providers offer prepaid cards or accounts that can be used to store money. Check cashers allow people to cash checks for a fee. Currency exchangers allow people to exchange one currency for another.

These examples illustrate the definition of nondepository providers of financial services because they all offer ways for people to access money or make payments without having to go through a traditional bank. They provide important financial services to people who may not have access to traditional banking services or who prefer to use alternative financial services.