Sending money through popular peer-to-peer (P2P) networks makes it easy to check one more thing off your to-do list. But which platform is best?
Cash App is one of these popular services. All you have to do is download the app, create your account, and you’re on your way.
But what else does Cash App offer? Is it best for Canadians?
After much review, I’ve narrowed down the top five alternatives to Cash App in Canada. Each one brings something unique to the table and offers additional services you might be looking for.
After reading this list, I’m confident you’ll find a platform that works for you.
Cash App is a popular peer-to-peer (P2P) payment platform available in the US and UK. You can download the app in the App Store or Google Play and then set up your own account.
From there, you can send and receive money, as well as use these other features.
- Direct Deposit. Your employer can deposit your paycheck into your account. In addition, you’re eligible for early access to your paycheck if needed.
- Stock Trading. Use Cash App to buy stocks directly for as little as $1.
- Bitcoin Trading. Buy and sell bitcoin from your app, or send it to others for free.
Cash App is similar to other P2P platforms like PayPal, Venmo, and Zelle, but its extended services make it stand out from the crowd.
Unfortunately, the app isn’t available to Canadians. But that doesn’t mean there aren’t other solid alternatives available.
Similar to Cash App, these other platforms let you send and receive money without any hassle and include other options you didn’t know you needed or wanted.
Why it stands out: It’s a versatile app that offers other services besides sending and receiving money. You can budget and save, get cashback, and build your credit score.
KOHO offers its users a P2P platform where they can instantly send and receive money to friends and family. In addition, sending to other KOHO user accounts is always free.
The thing that makes KOHO such a good alternative is that it offers additional services as Cash App does.
Not only will you get to transfer money, but you have access to a reloadable prepaid card, cashback options, and a savings and spending account.
Here are some of the top benefits to KOHO.
- It’s free. Koho’s main account, as well as its joint account, are both free. That means no monthly fees or minimum balances to maintain.
- Cashback rewards. One of the biggest benefits to a KOHO card and account is its cashback options. Users will receive cashback on all purchases. In addition, if you decide to update to a KOHO Premium account, you’ll receive additional cashback on groceries, restaurants, and transportation.
- Stay on budget. Want to keep your finances in check and not incur excess credit card debt? The KOHO reloadable prepaid card gives users a way to control their money. You can load the amount you want onto your card and spend only that amount.
- Earn interest. Have your employer direct deposit your paycheck into your KOHO account and earn interest on it. The best part is that the interest rate is higher than the typical big banks.
- Build credit. If you’ve struggled with bad credit in the past and are looking to improve your credit score, using a prepaid card usually doesn’t help. However, for $10/month, you can enroll in KOHO’s Credit Builder service. As long as you make payments on time, you can watch your credit score climb.
Why it stands out: Perfect for those looking to send money internationally. Also, Wise is upfront about their fees. You won’t find hidden charges or get a surprise when you actually send the money.
Wise is a well-known money transferring service. It’s especially beneficial if you’re looking to make international transfers. Wise supports over 50 currencies and is available in more than 80 countries.
Wise is all about transparency and even features a currency conversion calculator on its website. There are no hidden fees.
You’ll know what you’re going to pay before you send the money – no need to create an account to see the actual charges.
While other money transfer services tend to mark up the exchange rate, Wise doesn’t. It’s low cost and straightforward.
You can make reliably timed transfers, another added benefit. Depending on the currency and country, you can expect to receive most transfers within a day.
3. Wealthsimple Cash
Why it stands out: There are no fees to send and receive money. Plus, you can use one of Wealthsimple’s other platforms to invest money, trade stocks, or buy cryptocurrency.
With over 2 million users, the Wealthsimple family of products is one of the most popular ways Canadians send and receive money. Similar to Cash App, it’s free to use, and you can instantly send transfers to anyone on your contacts list.
In addition, Wealthsimple offers other services that cater to their customers.
- No fees. You can send and receive money. No need to worry about account fees. There aren’t any.
- Security. Money is CDIC insured, and you can use two-factor authentication on your account.
- Cash Card. Use the Wealthsimple cash card like any prepaid Visa. You can also earn cashback rewards on your purchases.
- Other Products. In addition to Wealthsimple Cash, you can invest, trade stocks, buy crypto, and even work on your taxes through all the different platforms available.
Why it stands out: It’s easy to use and free if you both have an account.
PayPal is a popular money transfer service. You can send and receive funds both within Canada and internationally.
It’s free to transfer money within the country if you and the recipient both have an account. You can either use your balance or linked bank account to move the funds.
When you transfer money internationally, you’ll pay much more in fees than other international transfer services like Wise.
The bottom line is to understand the fee structure. While it’s easy to transfer money from another account user within the country, it could cost you a bundle doing it across borders.
Why it stands out: It’s convenient, and most people already have access to it.
Most Canadians have access to Interac e-Transfer through their bank account. It’s convenient, and you can easily send money to friends, family, or anyone with a Canadian bank account.
The downside is the fees. Depending on your chequing or savings account package, you might incur a fee per transfer.
Other than that, it’s a fast and easy way to do money transfers.
While Cash App isn’t available in Canada, there are still other money transfer services you can choose from.
Before you make your decision, consider the fees required with each platform, as well as other services they may offer.
After all my research, I think KOHO is one of the top platforms to transfer money.
Not only do they offer money moving services, but you can create a whole spending and savings account, complete with a reloadable prepaid card. Check out their website to learn more.