In recent years, mobile payment services such as Cash App have gained immense popularity, simplifying transactions and catering to the financial needs of millions of users.
Developed by Square, Inc., Cash App has become a widely recognized and utilized financial tool in the United States. Many potential users in other countries, including Canada, are eager to explore the availability and benefits of the.
However, many Canadians are wondering if it's even available in Canada today.
We'll go over that, in addition with some platforms you may not know about that are as robust as Cash App and available right here in Canada.
Is Cash App available in Canada?
At the moment, Cash App is not available in Canada. The popular peer-to-peer payment service is primarily available in the United States. It has expanded to a limited extent in the United Kingdom. As it stands, Canadians can download the app, but cannot create a Cash App account or use the app for transactions.
However, the demand for Cash App here in Canada is high, and I have little doubt that Square is not evaluating the potential for expansion here.
For the most part, the hesitancy among many of these large companies is due to Canadian regulations. It's not that they're more demanding. It's just they're a bit different.
Don't fret, though. There are plenty of different options for Cash App alternatives here in Canada. Let's go over some of them.
Alternative apps for Canadians
Wealthsimple Cash
Wealthsimple Cash is a popular Canadian alternative to Cash App. It allows users to send and receive money instantly, just like Cash App.
The app has been taking Canada by storm recently, offering some of the best interest rates on your savings in the country.
In addition to Wealthsimple Cash, if you open a Wealthsimple Trade or Crypto account, you can trade stocks, options, and cryptocurrencies commission-free.
Wise
Wise, formerly known as TransferWise, is a well-known international money transfer service available in Canada, the U.S., and other countries like the U.K.
It offers Canadians some of the best exchange rates available.
It is the preferred method that I use to pay any sort of international transfers for Stocktrades.
The company also has a debit card, and it's fees are about as transparent as possible.
PayPal
Unless you've lived under a rock for the last two decades, you likely know what PayPal is. It is arguably the most recognizable money transfer service on the planet, accepted across the United States, Canada, the United Kingdom and many other countries.
You can send, receive, and request money and make payments through a credit card.
Although certain transactions may incur fees, personal transactions between friends and family are typically free.
Koho
Koho is a Canadian financial technology company that offers a no-fee, reloadable prepaid Visa card and app.
With the app, you can track your spending, budget, and even earn cash back.
Many would say that because Koho doesn't allow you to transfer money, it isn't comparable to an app like Cash App.
However, because of the way you can manage your finances on the app, I'd view it as more straightforward yet comparable.
Interac E-Transfer
Interac e-Transfer has exploded in popularity over the years in Canada. Even just half a decade ago, these transfers often cost you anywhere from $1-$5. Now? It's pretty much a necessity for a bank to offer you them free of charge.
It is integrated within most Canadian banks' online and mobile banking platforms, allowing users to send and receive money instantly.
Interac e-Transfer is widely accepted, dependable, and secure, making it a popular choice for Canadians.
Venmo
Venmo isn't currently available in Canada. However, suppose you're a snowbird or someone who routinely travels to the United States and has a U.S. bank account or credit card.
In that case, you can still access the feature and use it to transfer money to others in the United States.
Venmo is owned by another popular money transfer option noted above, PayPal.
Features comparison
Because Cash App isn't available in Canada, I want to review some of the options available to Canadians today that would imitate the platform.
Receiving and sending money
If you want to send and receive money, Interac e-Transfer will likely be the best route to mimicking what Cash App would do for you.
As mentioned, for the most part, it will be free to send and receive money and is about the most convenient way to do so in Canada today.
Debit card services
The Cash Card is a debit card provided by Cash App, which allows users to spend their account balance at merchants that accept Visa. However, with it not being available in Canada, your best alternatives are probably the Equitable Bank card or a Wealthsimple Cash account.
Both options will allow you to take advantage of cash-back perks and high interest rates on savings accounts.
Alternatively, there is always just a debit card from your major bank.
Banking services
Cash App provides limited banking services like direct deposit, allowing users in supported regions to receive paychecks directly to their accounts. In Canada, I would say that an Equitable Bank account is likely your best alternative.
I use the platform to deposit cheques, pay for groceries, and run my day-to-day finances. Although they have no brick-and-mortar locations, I don't find the need to go into a branch. As a result, I get higher savings rates on my savings inside of the accounts.
Bitcoin and cryptocurrency trading
One of Cash App's advantages is users' ability to buy, sell and trade Bitcoin within the app. This service makes it convenient for users to trade cryptocurrency without needing a separate cryptocurrency exchange account.
For similar features, Canadians looking for alternatives can utilize cryptocurrency trading platforms like Wealthsimple Crypto, Bitbuy, Coinbase, or Shakepay.
Cash App: Would it be worth it for Canadians?
Cash App has exploded in popularity, so many Canadians are wondering when the app will be coming to Canada. However, the one thing we need to think about is whether or not it's even worth it for Canadians to utilize the platform with what we have going on here at home.
Does Cash App truly offer a revive for Canadians looking to expand their financial resources?
One of the most significant advantages of the platform is its interface and its availability. Available on both Google Play and the App Store, Cash App offers a seamless experience for both novice and experienced users.
But I'd argue that Wealthsimple offers a similar interface, availability, and ease of use. The banking side of Cash App does give it an advantage over Wealthsimple.
Still, those using Wealthsimple Cash and Wealthsimple Trade may find they get all the functionality they need without the U.S. app having to come to Canada.
In conclusion, Cash App's expansive features and ease of use seem like they could offer a significant revival for Canadians interested in exploring financial opportunities.
However, it is essential to consider Canadians' specific needs and preferences to see if what they need isn't already offered here at home.
And with that said, let's compare the two options now.
Wealthsimple vs. Cash App
Wealthsimple and Cash App are popular financial services platforms that have attracted significant attention from users in Canada and the United States.
This section will compare the key features and offerings of these two financial services providers to help Canadians figure out if they already have an app right here at home that will help them.
Wealthsimple has various services, from self-directed investing to savings accounts to robo-advisors.
Wealthsimple Cash, a feature within Wealthsimple, provides a simple and quick way for users to send and receive money. Wealthsimple also offers investing and trading services, including tax-efficient portfolios, automated investing, commission-free stock, ETF, and crypto trading through its platform, Wealthsimple Trade.
Cash App, on the other hand, allows users to send, receive, and request money and invest in stocks and Bitcoin.
So, which app is better?
When it comes to trading and investing, Wealthsimple provides a more comprehensive suite of services compared to Cash App. Canadian users have access to Wealthsimple's robo-advisory platform, which creates customized and diversified portfolios for its users. In addition, through Wealthsimple Trade, users can trade Canadian and US-listed stocks and ETFs with no commission fees, making it an attractive option for those looking to invest in the stock market.
Cash App offers the ability to invest in stocks and Bitcoin but with limited options compared to Wealthsimple. Users can purchase fractions of shares of publicly traded U.S. companies.
Still, they do not have access to ETFs or Canadian-listed securities. Cash App also has no access to robo-advisor services, which could be a deal breaker for some.
While both Wealthsimple and Cash App provide a convenient way to send and receive money, Wealthsimple offers a more comprehensive suite of financial services for Canadian users.
I'd argue that most Canadians who want Cash App to come to Canada don't understand that they have a platform that can offer most of what they need right under their noses.
How do these apps work?
Direct deposits and transfers
Users can link their bank accounts to these apps and make instant money transfers to other users by entering the recipient's email or phone number or scanning a QR code.
In addition to this, they can add direct deposits from their employers and receive their paycheques right inside the platform.
Sending and receiving
Although Interac e-Transfers are making the process much easier, these apps still simplify sending and receiving money between friends and family.
Users can request or pay a specific amount with just a few taps on their smartphones.
Transactions are lightning-fast, and recipients often get the money instantly.
Bitcoin and other cryptocurrencies
Platforms like Wealthsimple and Cash App have crypto options, allowing users to safely buy, sell, or store digital coins.
Users can link their crypto wallets to the app, monitor the market prices for the chosen currencies and perform transactions without requiring additional tools or services.
Fractional Shares
One of the main benefits of Wealthsimple Trade is that it is one of Canada's first platforms to offer fractional shares, which competes directly with the functionality Cash App offers.
Risks and security
One of the primary risks associated with any digital payment platform is unauthorized access to user accounts. This is why platforms like Wealthsimple and Cash App often force users to enable two-factor authentification.
In addition, Wealthsimple deposits into both the savings and trade accounts are covered by the CIPF and CDIC.
FAQs on Cash App in Canada
Is Cash App available in Canada?
Currently, Cash App is only available for users in the United States and the United Kingdom. Unfortunately, Canadians cannot use Cash App to send or receive money. While the app can be downloaded in Canada, users cannot complete transactions.
Are there alternatives to Cash App in Canada?
Yes, there are several alternatives to Cash App in Canada, with Wealthsimple being our number one alternative.
E-transfers, offered by most Canadian banks, allow users to transfer funds between bank accounts with just an email address.
Why isn't Cash App available in Canada?
Cash App has not expanded its service to Canada due to various factors, including regional regulations, financial systems, and market competition.
Do I need to be a resident of the United States or the United Kingdom to use Cash App?
Yes, you need to be a resident of the United States or the United Kingdom to use Cash App. Additionally, you must have a valid bank account and a phone number registered in either of these countries to enable transactions.
Can I use my Canadian bank account or credit card with Cash App?
You cannot link a Canadian bank account or credit card to the Cash App. The app currently only supports U.S.- and UK-based bank accounts and cards.
While Cash App is not available in Canada at the moment, users can explore alternative options for mobile payments and keep an eye on potential expansions in the future.
