The best alternatives to Cash App in Canada are KOHO, PayPal and Wise Money Transfer.
Cash App is a peer-to-peer (P2P) payment platform for sending and receiving money using a smartphone app.
What is Cash App?
Cash App is a financial platform, not a bank. It provides banking services and debit cards through its bank partners.
The balance in your account is insured by the Federal Deposit Insurance Corporation (FDIC) through partner banks.
Cash App provides investing services through Cash App Investing LLC, registered with the Securities and Exchange Commission (SEC) as a broker-dealer and a member of the Financial Industry Regulation Authority (FINRA).
Through Cash App, users can send and receive money, get a debit card and set up direct deposits.
The investing feature allows users to invest in stocks for as little as $1. This is done by buying pieces of stock, called fractional shares.
Consumers can also buy, sell or transfer Bitcoin through the app.
Alternatives of Cash App in Canada
If you want to split bills with your friends and send cash instantly without paying a fee, there are Cash App alternatives you can use in Canada, including:
- KOHO
- PayPal
- Wise
KOHO
KOHO is a combination of a reloadable prepaid card and an app.
This financial technology company was founded in 2014 and offers one of the highest savings rates in Canada.
If you are looking for a top Cash App alternative in Canada, the KOHO app does P2P transfers and more.
PayPal
PayPal can be used to send and receive money in Canada and internationally. It also owns Venmo which is a Cash App competitor in the U.S.
While P2P PayPal transactions in Canada (friends and family) are free, you pay transfer fees when you send money abroad or use the platform for business purposes.
Wise Money Transfer
Wise is an international money transfer service that is available in 80 countries. It was formerly known as TransferWise and has more than 13 million users.
Unlike Cash App, you can also use Wise for cross-border payments.
Its fees are low and foreign exchange rates occur at the competitive mid-market rate which means you get more bang for your buck.
When you open a Wise multi-currency account, you can hold 53 currencies and apply for a debit card that works in 200 countries.
Final Thoughts
Cash App is not available in Canada for now, and there are no signs that it’ll ever launch here.