Is Cash App coming to Canada? In an interview with the Toronto Star, Block Inc CFO Amrita Ahuja confirmed plans to launch in the Great White North. But she didn’t say when and the media has been radio silent on the topic ever since. What’s the deal?
Cash App’s tech pedigree is flawless. It was created by Jack Dorsey and Jim McKelvey, and is now owned by Block. Are you going to use it? If this is the first time you’re hearing about Cash App in Canada, it’s touted as the next big thing in peer-to-peer banking.
Why is Cash App so popular?
Arguably, the essence of Cash App’s popularity in the U.S. stems from its multifaceted, yet straightforward functionality. With an increasing trend towards a cashless society and the drive for financial technology (FinTech) innovation, Cash App adeptly fills the need for quick, hassle-free transactions. Its accessibility, even to those without a bank account, has made it a financial lifeline for underbanked communities, amplifying its broad appeal.
Best Cash App alternatives in Canada
Not only have the big banks made it notoriously difficult for competitors to gain inroads, but the ones that have already offer strikingly similar services. Here are the best Cash App alternatives in Canada.
1. Wealthsimple: The overall best alternative to Cash App in Canada
Canada’s darling, Wealthsimple, has created a Cash App-like “financial ecosystem” that allows us to save, spend, invest, instantly move money, and more. Let’s take a look at how Wealthsimple is basically Cash App in a toque.
Peer-to-peer transactions
Through the Wealthsimple Trade app, you can instantly send money to other Wealthsimple users. You just need their unique $Cashtag username and money in your Spend & Save account. Wealthsimple lets you instantly send $5,000 a day, $10,000 per week, and $30,000 per month. That’s a major hit to Cash App’s lower limits capping out at $7,500 per week for verified accounts, and just $1,000 per month for unverified accounts.
Wealthsimple banking
Wealthsimple’s Spend & Save account, formerly known as the Cash account, offers the same core functionalities of a traditional chequing account with added bonus of earning up to 4% on your balance. Like Cash App, it lets you spend, save, store, move, and invest your money seamlessly within the app.
The account is free and offers unlimited free transactions with no minimum balance required. You can pay bills, send and receive eTransfers, and set up direct deposits. Users can instantly fund their account with $3,500 from a Visa/Mastercard-Debit, or $1,000 from a linked bank account. Higher amounts will just take a little longer to process.
Recommended by LinkedIn
Wealthsimple cash card
The Spend & Save account comes with a complimentary prepaid Mastercard, called the Wealthsimple Cash Card, that allows you to spend the money in your account as if it were a debit card. You can use it to shop in-person, online, and abroad anywhere that Mastercard is accepted. There are no annual fees, foreign transaction fees, or additional ATM fees to worry about.
Plus, it rewards you with 1% back in cash, stock, or crypto when you use your Wealthsimple card. It’s free to use and there’s no credit check required because you’re spending your own money, not borrowing like you do with a traditional credit card.
2. EQ Bank: The best Cash App Banking alternative in Canada
EQ Bank is one of the best neobanks in Canada offering a purely digital banking experience that serves as a robust competitor to Cash App’s banking services. It comes packed with a wealth of features like the versatile Savings Plus Account with 2.5% interest, GICs, and a cost-free prepaid card which you can use to access your money anywhere, anytime. Plus, the EQ Bank Card offers a 0.5% cash back reward on purchases, spares you from foreign transaction fees, and even refunds you for Canadian ATM fees.
Free from monthly charges, equipped with a user-friendly mobile interface, and a no-cost prepaid Mastercard, EQ Bank dishes out a compelling online banking adventure meticulously crafted for Canadian customers. If you’re smitten with your EQ experience, there’s an opportunity to earn up to $500 by introducing your friends and family to the platform.
For your initial three successful referrals, you’ll pocket $20 each, followed by $40 each for the next four, and $40 each thereafter, reaching a potential bounty of $500 in total referral bonuses. Sounds like a fantastic Cash App alternative, right?
3. KOHO: The best Cash Card alternative in Canada
KOHO is a Canadian-born financial technology enterprise providing an integrated app and a prepaid Mastercard. Echoing features akin to Cash App, KOHO grants users the ability to splurge, stash away savings, and swiftly shift money to buddies. The KOHO Prepaid Mastercard rewards you with up to cash back which rates depend on the chosen plan, and your money earns 5% interest until the second you spend it.
Yet, KOHO doesn’t stop there. It amps up the game by giving immediate updates on spending patterns, instant rebates on shopping, and an additional virtual prepaid credit card on top of the tangible one. For those craving the handy nature of a prepaid card coupled with integrated financial management tools KOHO is an excellent choice.
This article is the shortened version of an article originally published on Hardbacon.ca by Arthur Dubois under the title "Is Cash App Available in Canada Yet? Nope, But Here Are the Best Alternatives".
