There are plenty of cash advance apps out there that give you money now instead of waiting for your next payday.
This is helpful in many ways as some would be short of money before their salary arrives. Or they may be facing an opportunity where they need more money than what’s in their bank account right now. Or they want to avoid their bank’s overdraft fees.
Out of many, two of the most trusted cash advance apps are Dave and EarnIn. What’s fascinating is all these loans come at no interest or fees (usually) and can be repaid with your next paycheck. But this opens a question – how do then they make money?
If you are curious about it, then we at Insiderbits will show you their monetization models here. Read on to find out.
Dave: App Overview and Features
Dave calls itself “your ultimate financial friend” as it not only gives you an instant loan in your time of need but also makes your finances easier with many of its features we will see ahead. But what’s most relevant here is its ExtraCash feature.
ExtraCash is exactly what it sounds like. It lends you up to $500 with no interest, credit check, or late fees – just funds transferred directly to your Dave spending account in 5 minutes or less.
All you have to do is sign up to it to see how much amount you qualify for and set the amount you need. For a small fee, you will see your amount almost instantaneously sent to your Dave spending account. Other debit card transfers may take up to one hour. Then pay it back by the date you set.
Here are other services Dave provides:
1. Spending account
It is like a checking account you open at banks, but better. It comes at no overdraft or minimum deposit fees and lets you spend, manage, and deposit money your way. It also gives you a 4% interest for just keeping your money in it. Compare that to a 0.07% national average on checking accounts.
2. Dave Mastercard
As you open a Dave spending account, its virtual Mastercard also comes with it that can used straightaway with Apple Pay or Google Pay. You can also order a physical card if you want. The benefit of using this Mastercard is that it offers you up to 15% cashback when you shop with it.
3. Side hustle opportunities
Dave recently spread its wings further to also help you make more money instead of just managing and lending. It offers you flexibility in the type of side-hustle options you have. You can choose anything from filling out simple survey forms to freelance jobs.
4. Financial goal setting
Are you looking to save money for a goal? Well, Dave is your accountability partner to keep you on track. Just decide the amount and timeline and you are all set. Keep depositing the money and Dave will encourage you with the milestones you hit.
4.3/5
EarnIn: App Overview and Features
EarnIn’s tagline beautifully summarizes its core service “You worked today. Get paid today”. In other words, it brings your payday from monthly to daily. With its straightforward process, you can get up to $100 per day or $750 per paycheck in advance without any hassle.
And the best part is that it comes with no mandatory fees or interest. Apart from this, EarnIn also offers you free credit monitoring to aid you in maintaining it. EarnIn is absolutely free to use and asks only for an optional tip that you would like to pay for the service it offers you.
1. No interest or credit checks
EarnIn isn’t an instant loan app. Its service is to credit you your salary every day instead of at the end of the month. Thus, you won’t be going through any credit check for its service or have to pay interest.
2. Free credit monitoring
Credit score needs to be maintained these days so you can get a loan much easier at the time of need. EarnIn helps you keep an eye on it to make it clear what affects it for better or worse.
3. Balance shield alerts
When you connect your bank account with it, this app will notify you every time your bank balance goes into the red zone. This is important to avoid any overdraft or minimum balance fees.
4. 24/7 live chat support
Despite being free, EarnIn assists you with 24/7 live chat support to resolve any issues you may have with its service.
4.6/5
How Do Apps Like Dave and Earnin Make Money?
Now, as you have seen, since using both these apps is almost free, then what is their source of making money? Let’s have a look at each of them:
Dave
Dave is more versatile in its offerings and has many more services than just cash advances.
Its earning comes from various sources such as the membership fee it charges of $1 per month to unlock the full app. You will also have to pay a small fee if you want an express delivery of your loan. You can also tip it if you are feeling generous.
Apart from this Dave makes money from charging a tiny fee from merchants when you use its Mastercard to pay them. It is called an interchange fee.
One obvious source of money is the interest it earns from the money you keep in its spending account, just like banks. Yes, it pays you a 4% interest on your deposit but not before earning interest themselves.
It is also said that it earns a referral fee from employers for every worker referred from its side hustle feature.
EarnIn
EarnIn source of income is limited and mentioned on its website. Currently, it earns money in only 2 ways, both of which are optional:
- Lightening speed transaction fees – If you want your money deposited within minutes, then you will have to pay a fee. However, it may not be available for all.
- Tips – Just like Dave, you can always shower it with love by tipping it for its service. You can use the app just fine even without paying but many may consider it worth tipping for its free-of-cost and ad-free experience.
How to Download These Apps
Click any of the below links to go to the Google Play Store/App Store and download the app.
Conclusion
Dave and EarnIn feel almost like public service for the free to affordable services they provide. So, if you also want cash advances and manage your bank balance, do consider having any of them on your phone.
