How do neobanks and money apps make money? The five main ways, explained
By SendPay Business · · 2 min read
Money apps often look free to use, so how do they pay their way? Most earn a little from many small things their customers do every day. Here are the five main ways, with simple sums you can run for your own app.
1. Card spending
When a customer pays with a card, the shop's side pays a small fee, and part of it goes to whoever issued the card. How much depends on the country and the card, and in the UK and EU it's capped by law, so it adds up through volume rather than size.
2. Currency exchange
Converting money between currencies at the live rate plus a small margin is one of the steadiest earners. On £100,000 a month of conversions, a 0.5% margin is £500 a month.
3. Transfer fees
A small fixed fee on each transfer abroad. Customers compare the total cost, so a low fee plus a fair rate often wins them over from a high-street bank.
4. Paid plans
A monthly plan with extras such as more free transfers, a premium card or higher limits. 500 customers on a £5 plan is £2,500 a month.
5. Business fees
Businesses pay for things people don't: invoices, payment links, payouts to staff and suppliers. A small fee on each is a large share of revenue for many apps.
Build it
Create your own financial platform.
Pick a template, name it, brand it, preview every page before you pay. Your brand, your users, your fees.
Build my platform →Questions people ask
Which should I start with?
The one your first customers already pay for somewhere else. Families sending money home pay transfer and exchange costs; small businesses pay to get paid.
Can I work out my own numbers?
Yes. The free platform earnings calculator adds up what your own customers and fees would earn.
Platform earnings calculator →How do I set my fees?
The fees guide covers what to charge and how to stay competitive.
Set your platform fees →Can I call it a bank?
In most countries "bank" is a protected word you can only use with a banking licence. Call it an account, a wallet, an app or a platform. The accounts and payments behind a SendPay Business platform are powered by licensed partners.
Read next
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.