Cash App alternatives include Venmo, Zelle, PayPal, Google Pay, and Apple Pay. Mobile banking apps comprise Chime, Ally Bank, Simple, Varo Bank, and Revolut for convenient and feature-rich banking experiences on a mobile device.
Alternative
Key Features and Services
Core Value Proposition
User Base
Similarities
Differences
Strengths
Weaknesses
Venmo
1. Peer-to-Peer Payments: Specializes in peer-to-peer money transfers. 2. Social Feed: Allows users to share payment activity. 3. Split Bills: Offers easy bill splitting among friends.
Focuses on simple and social peer-to-peer money transfers, including bill splitting and payment sharing. Attractive to individuals for its social payment features.
Individuals, friends
– Peer-to-peer money transfers. – Social payment feed. – Bill splitting feature.
– No business transactions. – Limited financial features beyond peer-to-peer payments.
– User-friendly and social payment experience. – Convenience for splitting bills among friends.
– Lack of business functionality. – May not be suitable for larger financial transactions.
PayPal
1. Payment Processing: Offers payment processing services for individuals and businesses. 2. Money Transfers: Allows peer-to-peer and international money transfers. 3. Online Shopping: Enables online shopping and payment for goods and services.
Provides a versatile platform for online payments, money transfers, and e-commerce transactions. Attractive to individuals and businesses for a wide range of financial activities.
– Extensive business services. – International transfers. – Widespread online merchant acceptance.
– Established and trusted brand. – Wide range of financial services. – Global reach.
– Transaction fees for certain services. – May have account holds and disputes.
Zelle
1. Bank Integration: Links directly to users’ bank accounts. 2. Peer-to-Peer Transfers: Offers fast peer-to-peer money transfers. 3. Split Bills: Allows users to split bills and expenses easily.
Focuses on bank-integrated, fast peer-to-peer money transfers and simplified bill splitting. Attractive to individuals seeking seamless transactions within their existing bank app.
Bank customers, individuals
– Direct bank integration. – Fast peer-to-peer transfers. – Bill splitting feature.
– Limited to bank customers. – No standalone app; integrated with participating banks.
– Seamless bank integration. – Fast and secure transactions. – Bill splitting convenience.
– Availability limited to participating banks. – Lacks features beyond money transfers.
Google Pay
1. Mobile Payments: Enables in-store and online payments via smartphones. 2. Money Transfers: Facilitates peer-to-peer money transfers. 3. Google Wallet: Stores payment and loyalty cards digitally.
Offers a convenient way to make payments, send money to contacts, and store payment cards digitally on Android devices. Attractive to Android users for its integration with the Google ecosystem.
Android users, individuals
– Mobile payment capabilities. – Peer-to-peer money transfers. – Digital wallet for card storage.
– Android device requirement. – Limited to Google Pay-enabled merchants.
– Integration with Google services. – Contactless payments. – Loyalty card storage.
– Limited support for iOS devices. – Limited merchant acceptance compared to Apple Pay.
Apple Pay
1. Mobile Payments: Allows contactless payments via Apple devices. 2. Wallet App: Stores digital payment cards and passes. 3. Apple Cash: Enables peer-to-peer money transfers.
Focuses on secure and convenient contactless payments, digital wallet storage, and peer-to-peer money transfers for Apple device users. Attractive to individuals in the Apple ecosystem for its seamless integration.
Apple users, individuals
– Contactless mobile payments. – Digital wallet for card storage. – Apple Cash for money transfers.
– Limited to Apple devices. – Requires compatible hardware for contactless payments.
– Secure and convenient payments. – Digital card storage. – Integration with Apple devices.
– Limited to Apple ecosystem. – Limited acceptance at some merchants.
Cash App
1. Peer-to-Peer Payments: Facilitates peer-to-peer money transfers. 2. Cash Card: Offers a debit card linked to the Cash App balance. 3. Investing: Allows users to invest in stocks and Bitcoin.
Focuses on easy peer-to-peer money transfers with additional features like a Cash Card and investment options. Attractive to tech-savvy individuals and investors looking for a simple financial app.
– Limited to individuals and small-scale payments. – Transaction fees for instant transfers.
Revolut
1. Multi-Currency Accounts: Offers multi-currency accounts and currency exchange. 2. Debit Card: Provides a debit card for spending. 3. Crypto: Supports cryptocurrency trading.
Focuses on international travelers and individuals requiring multi-currency accounts, currency exchange, and cryptocurrency services. Attractive to frequent travelers and those interested in digital currencies.
International travelers, cryptocurrency enthusiasts
Specializes in online payment processing solutions for businesses, including platform payments and subscription billing. Attractive to online businesses and platforms requiring robust payment infrastructure.
– Not suitable for individuals or in-person payments. – Transaction fees for business services.
Facebook Pay
1. Payment Integration: Integrated with Facebook, Messenger, WhatsApp, and Instagram. 2. Peer-to-Peer Payments: Supports peer-to-peer money transfers. 3. Online Shopping: Facilitates payments for goods and services.
Offers seamless payment integration within Facebook-owned platforms, including peer-to-peer money transfers and online shopping support. Attractive to users of Facebook ecosystem apps.
– Requires a Facebook account. – Limited to Facebook-owned apps. – Limited global availability.
– Integration with social platforms. – Peer-to-peer transfers within messaging apps. – Online shopping convenience.
– Limited to users of Facebook ecosystem apps. – Limited availability in some regions.
TransferWise (Wise)
1. Currency Exchange: Offers currency exchange and international transfers. 2. Borderless Account: Provides multi-currency accounts. 3. Business Solutions: Offers business payment solutions.
Specializes in cost-effective international currency exchange and transfers, including multi-currency accounts and business-focused services. Attractive to individuals, businesses, and freelancers with international financial needs.
Individuals, businesses, freelancers
– Currency exchange and international transfers. – Multi-currency borderless accounts. – Business payment solutions.
– Transparent fees and exchange rates. – Business-focused services. – Limited to international transfers.
– Cost-effective international currency exchange. – Multi-currency account options. – Business solutions for global payments.
– Limited to international financial transactions. – May not replace a traditional bank account.
Samsung Pay
1. Mobile Payments: Supports contactless mobile payments via Samsung devices. 2. Rewards: Offers rewards for using Samsung Pay. 3. Loyalty Cards: Stores loyalty and membership cards digitally.
Focuses on secure and convenient contactless payments, with added rewards and digital loyalty card storage for Samsung device users. Attractive to Samsung device owners for its integration.
Samsung device users, individuals
– Contactless mobile payments. – Rewards program. – Digital card storage.
– Limited to Samsung devices. – Limited acceptance at some merchants.
– Secure contactless payments. – Rewards program for users. – Loyalty card storage.
– Limited to Samsung device owners. – Limited acceptance at non-participating merchants.
Chime
1. No Hidden Fees: Promotes fee-free banking with no overdraft or monthly maintenance fees. 2. Early Direct Deposit: Offers early access to paychecks. 3. Automatic Savings: Facilitates automatic savings.
Focuses on fee-free banking, early access to paychecks, and automated savings features. Attractive to individuals looking for a straightforward and cost-effective banking experience.
Individuals, budget-conscious users
– Fee-free banking services. – Early direct deposit. – Automatic savings features.
– No physical branches. – Limited international services.
– No hidden fees or account maintenance charges. – Access to funds before payday. – Simplified savings options.
– Limited international capabilities. – May lack in-person support.
Acorns is a fintech platform providing services related to Robo-investing and micro-investing. The company makes money primarily through three subscription tiers: Lite – ($1/month), which gives users access to Acorns Invest, Personal ($3/month) that includes Invest plus the Later (retirement) and Spend (personal checking account) suite of products, Family ($5/month) with features from both the Lite and Personal plans with the addition of Early.
Started as a pay-later solution integrated to merchants’ checkouts, Affirm makes money from merchants’ fees as consumers pick up the pay-later solution. Affirm also makes money through interests earned from the consumer loans, when those are repurchased from the originating bank. In 2020 Affirm made 50% of its revenues from merchants’ fees, about 37% from interests, and the remaining from virtual cards and servicing fees.
Alipay is a Chinese mobile and online payment platform created in 2004 by entrepreneur Jack Ma as the payment arm of Taobao, a major Chinese eCommerce site. Alipay, therefore, is the B2C component of Alibaba Group. Alipay makes money via escrows transaction fees, a range of value-added ancillary services, and through its Credit Pay Instalment fees.
Betterment is an American financial advisory company founded in 2008 by MBA graduate Jon Stein and lawyer Eli Broverman. Betterment makes money via investment plans, financial advice packages, betterment for advisors, betterment for business, cash reserve, and checking accounts.
Braintree
Venmo is a peer-to-peer payments app enabling users to share and make payments with friends for a variety of services. The service is free, but a 3% fee applies to credit cards. Venmo also launched a debit card in partnership with Mastercard. Venmo got acquired in 2012 by Braintree, and Braintree got acquired in 2013 by PayPal.
Chime is an American neobank (internet-only bank) company, providing fee-free financial services through its mobile banking app, thus providing personal finance services free of charge while making the majority of its money via interchange fees (paid by merchants when consumers use their debit cards) and ATM fees.
Coinbase is among the most popular platforms for trading and storing crypto-assets, whose mission is “to create an open financial system for the world” by enabling customers to trade cryptocurrencies. Its platform serves both as a search and discovery engine for crypto assets. The company makes money primarily through fees earned for the transactions processed through the platform, custodial services offered, interest, and subscriptions.
Compass is a licensed American real-estate broker incorporating online real estate technology as a marketing medium. The company makes money via sales commissions (collected whenever a sale is facilitated or tenants are found for a rental property) and bridge loans (a service allowing the seller to purchase a home before the revenue from the sale of their previous home is available).
Dosh is a Fintech platform that enables automatic cash backs for consumers. Its business model connects major card providers with online and offline local businesses to develop automatic cash back programs. The company makes money by earning an affiliate commission on each eligible sale from consumers.
E-Trade is a trading platform, allowing investors to trade common and preferred stocks, exchange-traded funds (ETFs), options, bonds, mutual funds, and futures contracts, acquired by Morgan Stanley in 2020 for $13 billion. E-Trade makes money through interest income, order flow, margin interests, options, future and bonds trading, and through other fees and service charges.
Klarna is a financial technology company allowing consumers to shop with a temporary Visa card. Thus it then performs a soft credit check and pays the merchant. Klarna makes money by charging merchants. Klarna also earns a percentage of interchange fees as a commission and for interests earned on customers’ accounts.
Lemonade is an insurance tech company using behavioral economics and artificial intelligence to process claims efficiently. The company leverages technology to streamline onboarding customers while also applying a financialmodel to reduce conflicts of interest with customers (perhaps by donating the variable premiums to charity). The company makes money by selling its core insurance products, and via its tech platform, it tries to enhance its sales.
Monzo is an English neobank offering a mobile app and a prepaid debit card for consumers and businesses. It was one of the first app-based banks to enter the UK market, founded by Gary Dolman, Jason Bates, Jonas Huckestein, Paul Rippon, and Tom Blomfield in 2015. All were employees of Starling Bank, a similar neobank challenging the dominance of established financial institutions in England. The company enjoys many revenue streams: business and consumer subscriptions, interchange and overdraft fees, personal loans, and more.
NerdWallet is an online platform providing tools and tips on all matters related to personal finance. The company gained traction as a simple web application comparing credit cards. NerdWallet makes money via affiliate commissions determined according to the affiliate agreements.
Quadpay was an American fintech company founded by Adam Ezra and Brad Lindenberg in 2017. Ezra and Lindenberg witnessed the rising popularity of buy-now-pay-later service Afterpay in Australia and similar service Klarna in Europe. Quadpay collects a range of fees from both the merchant and the consumer via merchandise fees, convenience fees, late payment, and interchange fees.
Revolut an English fintech company offering banking and investment services to consumers. Founded in 2015 by Nikolay Storonsky and Vlad Yatsenko, the company initially produced a low-rate travel card. Storonsky in particular was an avid traveler who became tired of spending hundreds of pounds on currency exchange and foreign transaction fees. The Revolut app and core banking account are free to use. Instead, money is made through a combination of subscription fees, transaction fees, perks, and ancillary services.
Robinhood is an app that helps to invest in stocks, ETFs, options, and cryptocurrencies, all commission-free. Robinhood earns money by offering: Robinhood Gold, a margin trading service, which starts at $6 a month, earn interests from customer cash and stocks, and rebates from market makers and trading venues.
SoFi is an online lending platform that provides affordable education loans to students, and it expanded into financial services, including loans, credit cards, investment services, and insurance. It makes money primarily via payment processing fees and loan securitization.
Squarespace is a North American hosting and website building company. Founded in 2004 by college student Anthony Casalena as a blog hosting service, it grew to become among the most successful website building companies. The company mostly makes money via its subscription plans. It also makes money via customizations on top of its subscription plans. And in part also as transaction fees for the website where it processes the sales.
Stash is a FinTech platform offering a suite of financial tools for young investors, coupled with personalized investment advice and life insurance. The company primarily makes money via subscriptions, cashback, payment for order flows, and interest for cash sitting on members’ accounts.
Venmo is a peer-to-peer payments app enabling users to share and make payments with friends for a variety of services. The service is free, but a 3% fee applies to credit cards. Venmo also launched a debit card in partnership with Mastercard. Venmo got acquired in 2012 by Braintree, and Braintree got acquired in 2013 by PayPal.
Wealthfront is an automated Fintech investment platform providing investment, retirement, and cashmanagement products to retail investors, mostly making money on the annual 0.25% advisory fee the company charges for assets under management. It also makes money via a line of credits and interests on the cash accounts.
Zelle is a peer-to-peer payment network that indirectly benefits the banks’ consortium that backs it. Zelle also enables users to pay businesses for goods and services, free for users. Merchants pay a 1% fee to Visa or Mastercard, who share it with the bank that issued the card.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
