cash app

Chime vs. Cash App: Here’s How They Compare

App Orbit is a website that reviews various mobile apps. We DO NOT own or operate any of the mobile apps ourselves. Any issues or support requests should be sent directly to the app developers.

Although society is spoilt for choice with the plethora of banking apps readily available, it can become an overwhelming process to make the right choice for your bank account.

Many individuals search for a banking solution that is free of hidden costs, where they have control of their financial plan and can manage money from one place. 

Payment apps Chime and Cash App both became available to the public nine years ago. With over eight million account holders, Chime was founded by a US-based financial technology company and earns most of its $200 million revenue from interchange fees. 

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Formerly known as Square Cash, Cash App was developed by Block, Inc. Available in the US and UK, 70 million users have contributed to a gross profit of $1.8 billion dollars last year.

Is Chime like Cash App? Read on to find out more.

Chime
Android version: download here
iOS version: download here

Cash App
Android version: download here
iOS version: download here

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Is Chime Better Than Cash App?

These two payment apps are both popular choices. But is Chime and Cash App essentially the same?

Read on to gain a better understanding of what makes Chime and Cash App unique.

Chime App Overview

Chime focuses on informing its users on improving their personal financial management and budgeting skills. This unique approach is supported by a user-friendly platform empowering customers to control their finances. 

Chime is FDIC-insured and places a strong emphasis on customer feedback to ensure the payment app is tailor-made to suit the needs of its clientele. Their banking services are offered via Bancorp bank and Stride.

Cash App Overview 

Similar to PayPal, Cash App is an online payment processing service, offering peer-to-peer payment options via email or cell phone numbers. Money can also be transferred from Cash App to Chime or vice versa. Only one party needs to have access to the Chime app to make this possible. 

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Direct deposit services are offered by Lincoln Savings, and debit cards are issued from Stutton Bank. This free mobile app is also designed to support small and medium-sized businesses by accepting credit cards without requiring a point of sale system. Ideal for investors, Cash App, offers users opportunities to invest in stock and cryptocurrency. 

How To Choose A Payment App?

Price Tag

An important selling point for online banking apps is eliminating or drastically reducing fees charged to the customer. Traditional banking institutions are renowned for adding extra fees. Always ensure the fee structure for your chosen app is minimal or non-existent.

Interest Rate

Online banks usually offer more competitive interest rates compared to traditional banking institutions. Check to see whether your chosen online bank offers account bonuses and special rates to help you with your long-term finances.

Mobility

A trustworthy mobile banking app offers direct access to your banking account in the most convenient way. 

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Protection

An online bank that is FDIC-insured is usually a safe option. Online bank security measures include 24/7 monitoring by an authorized facility to detect possible security breaches or threats. Additional security features should also be in place, such as requiring a PIN number and password for withdrawals. 

Web Access

Online banking websites are usually easy to navigate and often have 24-hour access, allowing for convenient money transfers from any location.

Extra Services

Online banks go beyond the usual services provided by traditional banking institutions, often offering special promotions to their clientele.

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Chime or Cash App – Pros & Cons 

Chime Pros:

  • Insured by FDIC means account holders have peace of mind. Every customer that makes a deposit has insured a minimum of $250,000 in case of Chime’s unforeseen closure.
  • The fee-free banking system is an incentive for users to make positive financial decisions independently. Chime also refunds users charged fees by any of their partnered banks.
  • The elimination of overdraft fees allows users to connect their checking accounts with a debit card to utilize the free overdraft facility.
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  • Foreign transactions don’t have additional costs, regardless of the currency.
  • Chime protects users by offering spam protection in emails, phone calls, and text messages, free of charge.
  • The savings account offers a high yield of 0.50% APY.

Chime Cons:

  • The lack of personal service is highlighted in Chime’s limited customer care line. The website’s phone line isn’t available 24/7.
  • Chime does not offer a system to schedule future payments. This has to be done manually.
  • Chime does charge for certain ATM usage and foreign currencies.
  • Chime caps its user’s maximum expenditure per month.

Cash App Pros & Cons 

Cash App Pros:

  • Cash App offers a navigable platform and an easy registration process. New users can sign up with an email address or phone number. Once a new user is verified, the mobile GPS system will locate Cash users in your vicinity. 
  • The payment of funds occurs via a secure network of servers, and the transaction is instant. 
  • Cash-to-cash payments are free for Cash App users.
  • Cash App is available for Android and iOS mobile devices. Users should make up the app via Wifi as cellular data fees can become excessive. 
  • Cash App offers the option to invest in stock without minimum or maximum restrictions.
  • Users are given a cash bonus when friends sign up and use their referral code.
  • The ‘cash boost’ service offers special discounts to users.

Cash App Cons:

  • Cash App is only available within the US and Canada. Transactions can only occur within these locations.
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  • There is no live phone helpline and customer support is only offered on the FAQs page on the website and mobile app.
  • Users do not earn interest on their balance.

Conclusion

If you’re an individual with a bank account looking for a different approach to banking, Chime and Cash App are both possible options.

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They both provide quick and easy online payment and banking options within a secure network. Funds can be transferred to companies, merchants, and individuals from desktop or mobile devices.

If you aim to save money without paying unnecessary fees, Chime should be a strong possibility. Investors interested in cryptocurrency trading and the stock market should look at Cash App as the right choice. Cash App vs. Chime – the choice is yours.

App Orbit is a website that reviews various mobile apps. We DO NOT own or operate any of the mobile apps ourselves. Any issues or support requests should be sent directly to the app developers.

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