How Does Dosh Make Money? Dosh App Business Model In A Nutshell

Dosh is a Fintech platform that enables automatic cash back 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. 

OverviewDosh App operates as a cashback and rewards platform that enables users to earn cashback on their everyday purchases. The company’s business model is built around providing consumers with a simple and convenient way to save money while also offering merchants an effective marketing channel to attract and retain customers through cashback incentives.
Cashback RewardsDosh App offers cashback rewards to users when they make purchases at participating merchants. Users link their debit or credit cards to the app, and transactions made with these cards at eligible merchants trigger cashback rewards, which are deposited into the user’s Dosh wallet. This encourages users to shop at partner businesses.
Merchant PartnershipsDosh App partners with a network of brick-and-mortar and online merchants across various industries, including retail, dining, travel, and more. These partnerships allow merchants to attract customers by offering cashback incentives, which can drive foot traffic, increase sales, and enhance customer loyalty.
Referral ProgramDosh App operates a referral program that rewards users for referring new users to the platform. When a referred user signs up and links a card, both the referrer and the referee receive a cash reward. This referral strategy helps Dosh App acquire new users while incentivizing existing users to promote the app.
Payment ProcessingDosh App generates revenue through payment processing fees from its merchant partners. Merchants pay a fee to Dosh App for every successful transaction that results from a user’s cashback activation. This revenue-sharing model allows Dosh App to monetize its platform while offering cashback incentives to users.
Wallet and PayoutsUsers accumulate cashback rewards in their Dosh wallet within the app. Once the wallet reaches a specified minimum balance, users can request a payout, typically via bank transfer or PayPal. This provides users with a tangible benefit, as they can redeem their earned cashback for real money or gift cards.
Location-Based OffersDosh App leverages geolocation technology to provide users with location-based offers. When users are near participating merchants, the app sends notifications about available cashback deals, encouraging them to visit and make purchases. This feature enhances user engagement and drives in-store traffic for merchants.
Data InsightsDosh App collects and analyzes consumer spending data to provide insights and trends to its merchant partners. This data can help merchants refine their marketing strategies and tailor offers to specific consumer segments. It also allows Dosh App to enhance its platform’s effectiveness in driving sales.
Challenges and CompetitionDosh App faces challenges related to competition in the cashback and rewards app space, as several similar platforms offer cashback incentives. Additionally, maintaining a strong network of merchant partners and ensuring user security and data privacy are ongoing concerns. Standing out and delivering value to both users and merchants is essential for growth.
Future Growth StrategiesDosh App’s future growth strategies may involve: – Expanding Merchant Network: Adding more merchant partners to diversify cashback options. – Enhancing User Experience: Continuously improving the app’s user interface and functionality. – Data-Driven Insights: Offering more robust data analytics and insights to merchant partners.



Origin Story

Dosh is an app allowing consumers to earn a percentage of cashback on eligible purchases.

At the beginning, the Dosh business model involved the creation of partnerships between major retailers or brands and payment card providers Visa, Mastercard, and American Express.

Consumers can earn up to 10% cash back in some cases, but most stores offer something in the range of 2-5%.

Dosh is a true set-and-forget app for debit and credit card purchases. It is not like other cashback schemes requiring the consumer to follow a series of convoluted steps to claim a reward.

Once a consumer attains $25 in their Dosh balance, they can transfer the money into a bank or PayPal account. Alternatively, they can donate the balance to a charity of their choice.

Dosh revenue generation

Dosh makes money through affiliate marketing. When a consumer purchases at an affiliated store, the company receives a small commission. This commission is then shared with the consumer who made the original purchase.

The company believes that a direct cash reward is a far stronger incentive for a consumer to buy than traditional advertising thus directing billions of dollars wasted on advertising into consumer pockets. 

Indeed, Dosh’s mission is to “positively impact people’s lives by moving billions of dollars to millions of people.”

Displayed in the Dosh app is a list of deals from local online and offline merchants. For consumers wishing to go on vacation, Dosh also offers large savings on hotel accommodation of up to 40%.

Targeted deals

Perhaps the most significant driver of revenue generation for Dosh is its ability to send targeted deals to consumers.

For example, consider a scenario where two consumers living in the same town visit the same restaurant. The first consumer is an infrequent visitor to the restaurant and prefers to eat smaller, lunch-time meals.

The second consumer, on the other hand, is a restaurant regular who tips well and often brings their family too.

Here, the latter is likely to receive a better cashback deal than the first patron. In turn, this reinforces desirable buying behavior and allows Dosh to make more money.

Dosh is also able to maximize revenue by removing barriers to purchasing. The app takes the guesswork out of each deal by clearly dictating the terms, conditions, and specific discounts available for each.

Furthermore, the company has an interesting referral program. Consumers are paid $5 for getting their friends to sign up for the program, which is far from the most competitive rate in the industry.

However, consumers who refer businesses to Dosh receive 20% of their Dosh fees for the next two years.

Key takeaways:

  • Dosh is an app allowing consumers to earn a percentage of their purchase as cashback. The Dosh business model is built on a relationship between major card providers and participating online and offline businesses.
  • Dosh makes its money through affiliate marketing. After an eligible sale, Dosh shares the affiliate commission with the consumer who made the purchase.
  • Dosh executives believe that a direct cash reward is the strongest consumer purchase incentive. In some instances, these rewards are tailored to each consumer based on the degree of interaction they have with certain businesses.

Key Highlights

  • Fintech Cashback Platform: Dosh is a Fintech platform that offers automatic cashback for consumers on eligible purchases. It connects major card providers (Visa, Mastercard, American Express) with online and offline local businesses to develop automatic cashback programs.
  • True Set-and-Forget App: Dosh allows consumers to earn cashback on debit and credit card purchases without the need for complicated redemption processes. The app is designed to be user-friendly and straightforward.
  • Revenue Generation: Dosh makes money through affiliate marketing. When consumers make purchases at affiliated stores, Dosh earns a small commission. A portion of this commission is then shared with the consumer who made the original purchase.
  • Direct Cash Reward Incentive: Dosh believes that offering a direct cash reward is a powerful incentive for consumers to make purchases. This approach is seen as more effective than traditional advertising, and Dosh aims to direct advertising dollars into consumer pockets.
  • Targeted Deals: Dosh uses targeted deals to drive revenue generation. Different consumers may receive varying cashback offers based on their buying behavior and preferences. By offering personalized deals, Dosh reinforces desirable purchasing behavior and maximizes its earnings.
  • Savings on Hotel Accommodation: In addition to local deals, Dosh also offers significant savings on hotel accommodation, with potential discounts of up to 40% for travelers.
  • Referral Program: Dosh has a referral program where consumers can earn $5 for getting their friends to sign up for the platform. Moreover, consumers who refer businesses to Dosh receive 20% of the Dosh fees from those businesses for the next two years.
  • Positive Impact on People’s Lives: Dosh’s mission is to positively impact people’s lives by redirecting advertising dollars to consumers through cashback incentives.
  • Simplified Deal Terms: Dosh removes barriers to purchasing by clearly stating the terms, conditions, and specific discounts available for each deal. This transparency helps consumers make informed decisions.

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List of FinTech Business Models


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 businesscash reserve, and checking 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.


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 financial model 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 cash management 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.

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