Canadian fintech enters the prepaid market with new consumer solution
Mogo Finance Technology Inc. today announced the launch of the digital Mogo Spending Account with Platinum Prepaid Visa Card. This is the fourth product in Mogo’s innovative line-up of financial solutions designed to help Canadians manage their financial health and represents the next step toward Mogo’s vision to build the best digital banking experience in Canada.
The digital spending account can be opened for free in less than three minutes through Mogo’s iOS mobile app. The spending account comes with a Platinum Prepaid Visa card that is Chip/PIN and Paywave enabled. Funds can be transferred instantly from most bank accounts in Canada into the Mogo Spending Account directly through the app, giving consumers a convenient way to manage their spending without having to change banks. The account is designed to help consumers monitor and control their spending in a convenient and engaging way, through features such as instant transaction alerts with each purchase along with updated real-time balance. There are no monthly account fees and, unlike a regular credit card, using the MogoCard means there is no risk of overdraft fees or interest charges. In addition, when consumers sign up for a MogoAccount, they have the added benefit of access to Mogo’s other products including free monthly credit score monitoring, mortgages and personal loans.
“The launch of our digital spending account represents another important growth milestone for Mogo, bringing us into the large and growing payments market with a highly differentiated solution,” said David Feller, Founder and CEO of Mogo. “One of the biggest financial challenges consumers face is overspending, as credit cards are designed to incentivize spending while debit cards make it difficult to stay on budget. Our new spending account is designed to solve the overspending problem. We are leveraging the power of our technology platform to deliver a digital product that is not only much more convenient, it also gives consumers real-time data to help them manage and control their spending. With more than 350,000 members and our suite of innovative solutions, we continue to build on our market leadership as we work to deliver the best digital banking experience in Canada.”
“We’re always looking for ways to offer products that save consumers money so we’re excited to provide this product to customers for free with no monthly fee while Mogo earns the interchange revenue on transactions,” said Greg Feller, President and CFO. “Moreover, this product is a low-hurdle way for Canadians to add Mogo to their financial wallet and immediately get value and utility they are not getting from their current financial institution. Over time, as we continue to introduce new products and earn the trust of our members, our expectation is we will gain an increasing share of their financial wallet.”
Mogo has begun rolling out the product to members on its waitlist – to sign up for free download the iOS app.