Cash Advance Apps Like MoneyLion: It is the eighteenth day of the month. You just paid money for a giant pizza with extra seven layers of cheese. You received a message from your bank and are suddenly hit by a realization that you are on the verge of emptying your bank account. You are almost hanging by a thread. What will you do? You can not ask your friends because you do not have any. The pizza you ordered is the only source of consolation in your life.
We will not be shocked if you call the situation in question a horror. It is indeed. That is where the cash advance apps enter, quenching your need for instant cash before your payday. MoneyLion is one such application that has captured a lion’s share in the cash advance market. There are certainly exemplary cash advance apps like MoneyLion that aim to help you avoid the horror of empty bank accounts.
If you are an entrepreneur whose dream application runs along the same lines, this blog is for you. In this blog, we will dig into the intricacies of a Cash Advance Apps Like MoneyLion. Not just that, we will also probe the cash advance apps other than the pioneer MoneyLion.
What exactly does a Cash Advance Apps Like MoneyLion do?
- Processing Time
The basic premise of a cash advance application is that a user will be short on money before the next payday arrives. Believe it or not, this is true for many of us, especially the ones in our 20s who have just started off.
What a cash advance application will do is it will lend us some money in times of desperate need and adjust it against our next paycheck. The point to be noted is that the application will not charge any interest. Rather it will charge a fee that will obviously be less than the interest charges.
The process is quite easy-peasy and economical. If not for the cash advance applications, we will still be paying hefty interest to payday loan lenders.
Before we go ahead, it makes sense to take a look at certain terminologies you should know if you have decided to develop a cash advance app like MoneyLion –
The amount is the money a user borrows from a cash advance app. Usually, a cash advance application sets an upper threshold for the amount a user can borrow.
2. Processing Time
Processing time is the duration of time taken by a cash advance app to transfer money to a user’s account. Processing time differs from one app to another. An application may provide the user with an instant transfer if you fulfill certain conditions.
We have already mentioned that a cash advance app does not charge any interest. However, they levy a fee which is very economical.
As the cash has been advanced against the user’s next salary, the payment of the advance will be automatically deducted as soon as the user receives the compensation. The time to repay may alter if a cash advance application permits.
What is MoneyLion?
Before we go further, you must know that the frontrunner in the cash advance application domain is none other than MoneyLion.
MoneyLion advances its users’ instant cash advances up to $ 250. All a user has to do is create an account on the MoneyLion application and connect it with a checking account from an external financial institution. The checking account must be at least some months old and never ever have a negative balance.
If a user has a MoneyLion checking account, the money will be paid in a duration of 12-24 hours. Otherwise, it will take up to 2-5 business days. If a user is in the most hopeless situation and instant cash is his/her/their only savior, then he/she/they can use the express service. The user will be transferred cash in just a few minutes.
When the next payday of the user arrives, it deducts the advance amount. It charges a voluntary fee for which the application has not set any upper limit. The express fee has a charge which is optional between $0.49-$8.99 per $5-$100 advance amount.
MoneyLion is a very cool application. However, if a user really searches, he/she/they might be able to find other cheaper and better alternatives. This is what our next section will be about.
What are the other Cash Advance Apps Like MoneyLion?
We know that you have a brilliant idea of a cash advance app like MoneyLion brewing in your mind. So we decided to help you to get to know who your competitors are and what they are really doing.
To avoid blogs becoming perplexing, we decided to make things easy for you to take in. We have created a table below that will compare all the cash advance applications we are going to discuss –
We advise you to scan the table as we discuss each and every cash advance application ahead.
Chime is a disruptive fintech when it comes to the cash advance application market. If we take a close look at the working of Chime, it is not exactly a cash advance application.
Overdrafts are a big-time nuisance when it comes to paying enormous fees for them. Chime has emerged with a sort of overdraft protection. A user has to have a Chime checking account with a minimum of $ 200 as qualifying deposits.
If a user does that, the only thing he/she/they have to worry about is nothing because Chime has started advancing money to the user so that his/her/their bank account never falls off the overdraft.
The amount of money lent will start from $ 20 and increase up to $ 200 as per the activity in your account. Repayment will be on your payday and no fees will be charged. A user can always tip.
If a user has just started earning, it would do no harm if he/she/they have a useful cash advance app like EarnIn. EarnIn has a dynamic working model where it lends $ 100 to $ 750 to its users within 1 to 2 business days.
What makes EarnIn distinct from other cash advance apps is that it keeps a record of the hours a user has worked and the salary he/she/they have earned. Depending upon it, the lending amount is calculated.
Usually, the users will get the advance in around 1-2 business days. But in times of dire need, they can always make use of Lightning Speed with a payment of $ 0.99 to $ 3.99 as a tip, depending upon the amount a user has borrowed.
Not yet. EarnIn has devised a unique approach to connect its users through Tip Jar. In Tip Jar, the users can tip themselves as an appreciation for a task well accomplished.
Brigit is another leading cash advance app like MoneyLion that has moved the fintech industry to newer heights. Brigit loans its users an advance of up to $ 250 which is transferred immediately if the debit card the user is connected to. Otherwise, Brigit funds you either on the same day (if the request is put in before 10 am Eastern Time) or the next day.
However, Brigit does not have an optional tipping model, unlike its contemporaries. Rather, the users have to buy a monthly subscription of $ 9.99 to be able to avail of the cash advances. Using the monthly subscription, the users can utilize the credit-building tools of the Brigit application.
The users can always rely on Brigit for sound financial suggestions and budgeting. The application also suggests you a side gig if your financial health is not up to the mark. Its overdraft protection services are of immense value.
However, with a low lending threshold and a mandatory monthly subscription, Brigit may not be an ideal application for many people who are searching for short funding alternatives.
If a user is someone who is always at risk of being broke, then he/she/they must download the Empower application. The application has been built for such users.
Like Brigit, the users have to pay an $ 8 subscription to get advances through the Empower application. After doing so, the users do not have to pay any tip or late fee. All a user has to do is open an Empower Account. The Empower application will take a peek into the banking details of its users to determine if they are eligible.
The doors of Empower are always open for freelancers, unlike its contemporaries. A user can get up to $ 250 cash advance which will be transferred instantly on payment of a fast funding fee. Otherwise, it will take one business day which is pretty quick if compared to other applications.
A user can always rely on Empower for making better financial choices.
Many users must be delighted to have something like cash advance applications such as MoneyLion. Dave is one such application that can function well as an alternative to MoneyLion.
Dave lends its users as high as up to $ 500 as an advance payment for their expenses only if they have paid a subscription fee of $ 1 which is quite nominal. However, the users have to have an ExtraCash Account and a Dave Savings Account to avail of cash advances from Dave. Opening numerous accounts can be an annoyance for some users.
Dave takes as long as two working days to transfer funds into the accounts of its users. It can obviously transfer it fast if the users pay an express fee for the same.
Let us discuss its unique selling point of Dave. When loaning money, Dave does not distinguish between its users on the basis of the nature of their jobs. Whether a user is a full-time employee or a part-time worker, Dave embraces all.
Dave does not stop here, obviously. If a user is looking forward to a fat wedding or an expensive degree, Dave helps you achieve all. Through Dave’s goal account, you can easily fund your dreams by transferring money in small proportions.
We have comprehensively listed each and every application that we think can outperform MoneyLion.
As an entrepreneur, you can design an application, taking into note the pluses and the minuses of the cash apps like MoneyLion that we discussed.
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Frequently Asked Questions (FAQs) For cash advance apps
1. Which is the next best alternative to MoneyLion?
Obviously, there are many alternatives to cash advance apps like MoneyLion, all being distinctive in one way or the other. However, it is EarnIn and Dave that have the ability to outperform MoneyLion.
EarnIn’s upper threshold for the amount to be loaned is as high as $ 750 which its user can avail instantly at a subscription fee lesser than its contemporaries.
Dave also lends an amount as high as $ 500. However, what makes Dave stand apart is its unique selling point. Dave readily loans out money to all, whether you are a freelancer or a full-time working employee. This helps Dave gain the attention of a wider audience.
2. Are there cash advance apps like MoneyLion that lend you money on an instant basis?
Most, if not all, cash advance apps transfer loan amounts to the bank accounts of its users readily. All the users need to do is to pay the premium subscription fee of the application. EarnIn charges a subscription fee of $ 0.99 to $ 3.99 for fast funding.
However, a user may have to do more in case of cash advance apps like Dave and Empower. The apps require their users to open direct or savings accounts to avail such service. Both applications transfer funds within an hour or so.
3. What is the cost of developing cash advance apps like MoneyLion?
A cash advance app can be a complex fintech application. The cost of developing such apps relies upon a variety of factors including –
- Features and functionalities
- Location of development
- UI/UX design
If estimations are to be made, it may cost approximately $ 40000 to $60000 to build a basic app. The price of building the app may vary depending on the aforementioned factors.