Cash App Canada (Plus 5 Working Alternatives)

September 25, 2022
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Cash App Canada

Is Cash App Available in Canada?

Cash App is currently not available in Canada. To use this app, the receiver and sender must have U.S. and U.K. phone numbers for verification and authentication purposes. Canadians can opt for other money transfer platforms like Cash App. 

What Is Cash App? 

Cash App is a peer-to-peer mobile payment application in U.S. and U.K. It allows users to transfer money to other Cash App accounts and bank accounts. The users can also use it to pay, trade stocks, and cryptocurrency. 

Square Inc., now known as Block Inc., launched the mobile app in 2013, providing an accessible and user-friendly interface. You can easily send money using your $Cashtag, phone number, and QR codes. Currently, Cash App garnered about 44 million users as of 2021. 

Cash App's top features are the following:

  • Direct Deposits: Direct deposits such as receiving a paycheck are offered by the app two days earlier than other banks. 
  • Cash Card: It is a free Visa debit card that you can use to pay in physical stores and online. Cash Cards are used by adding them to your Google Pay or Apple Pay.
  • Cryptocurrency: You can buy, sell, and send Bitcoin using this app. 
  • Stock Trading: You start buying stocks at $1. It offers zero commission with a limit of three-day trades in a rolling trading period of five days.

Cash App doesn't have many differences compared to competing peer-to-peer payment apps, though it doesn't charge any transfer fees, monthly fees, or inactivity fees.

How Does Cash App Work? 

Opening an account in Cash App is easy. With its easy-to-use interface, users can immediately use it for the desired transaction. There are also no fees needed when setting up an account.

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Cash App is available on Google Play and App Store. Both U.S. and U.K. can sign up on this money transfer platform by following these:

  1. Download the mobile app and launch it.
  2. Provide your email address or phone number.
  3. You must verify the account once the app sends you a code through email or SMS. 
  4. Add your bank account by providing the debit details. 
  5. Create a username (also known as a $Cashtag) for receiving and transferring money. 
  6. Provide your zip code.

Optionally, you can also invite another person to use the app. Minors from ages 13 to 18 years old can use the app but require parental approval to gain access to its specific features. Unlike other mobile transfer apps, Cash App supports both credit and debit cards. 

5 Cash App Alternatives For Canadians 

#1 KOHO

One of the top online savings and spending platforms Canadians can alternatively use is KOHO. Established in 2014, the company became popular for providing high savings rates in the country. The app offers many impressive features and services that could benefit the users. 

KOHO allows users to earn about 1.20% interest per dollar through direct deposit in their account. Every transaction, including bill payments, Interac e-Transfers, and debits, is free. You can also have 3-day early access to $100 of your paycheck.  

Using KOHO to transfer money is free, but foreign transactions require a paid premium account. It charges your account automatically for about $9 per month. 

Improving your credit score is another unique feature that KOHO offers. You only need to subscribe to the paid KOHO Credit Building feature. If you're looking for an app that allows you to budget and saves money, this might fit your liking. 

Best For: Canada to Canada

Pros

  • No annual fees
  • Early paycheck access
  • Earn interest
  • Earn cash back
  • CDIC-insured

Cons

  • Spending limit of $3,000
  • International transactions are only allowed using premium card
  • Can only withdraw $600 in cash
  • Requires users to link a bank account

#2 Interac e-Transfer

Interac e-Transfer is one of the convenient payment platforms that most Canadians use. If you are seeking ways to send money to someone in Canada, Interac e-transfer is a perfect way to do it. It offers broad access because it's integrated with 200+ banks and credit unions.

The primary requirement for the recipient in using Interac is a Canadian bank account. There is no need to download another mobile application when sending and receiving money using Interac e-Transfer. It's highly recommended for reliable and more secure transactions when sending money directly to the bank account. 

Generally, Interac e-Transfer charges fees of about $1 to $1.50 to the sender of the money, but it's free to receive it. 

Best for: Canada to Canada

Pros

  • Convenient for online banking
  • Money can be accessed and received immediately

Cons

  • Senders are required to pay $1 to $1.50 fees per transfer in the majority of banks and credit unions
  • Exchange rates aren't visible
  • Expensive rates compared to other money transfer platforms
  • Some Canadian financial institutions aren't supported
  • It may take time to receive money from different banking institutions

#3 Wise

Formerly known as TransferWise, Wise is an international money transfer platform providing affordable rates to users. Canadians can alternatively opt for this service which also supports transactions from 80 countries globally. 

Wise ensures users are not paying any hidden fees and highlights its multi-currency account. A Wise account offers 50+ currencies, allowing you to receive and send money as a local would.

Sending money with Wise costs a minimum of 0.41% of the transfer amount, but the exact amount varies by currency. A fixed fee of $4.14 per USD wire payment is applied. The rest of the features are free such as opening an account, holding money, and receiving money from 10 currencies. 

Best For: Canada to abroad and vice versa

Pros

  • No hidden fees 
  • Cheap transaction fees
  • Available online or in the app
  • Offers multi-currency accounts

Cons

  • Does not allow cash payments deposit
  • No trading services in the app
  • Accounts are not interest bearing
  • Variable fees depending on the recipient's country
  • USD wire payments are not free

#4 Wealthsimple Cash

The closest feature similar to Cash App is Wealthsimple Cash. It offers an instant money transfer that Canadians can opt for. The application also supports both Apple and Android smartphones.

This peer-to-peer application allows users to pay and split bills using the $ sign in their usernames. It provides cash card features that serve like a prepaid Visa card enabling you to earn a maximum of 5% cashback. Like Cash App, this app offers services such as cryptocurrencies and trading and investing stocks.

Wealthsimple Cash doesn't charge fees when using spend accounts. Users can send and receive money up to $5,000 for free, while other services, such as trading and crypto, carry fees. 

Best For: Canada to Canada

Pros

  • Free to receive and send money
  • Secured and CDIC insured
  • Automatic $1 cash back after signing up
  • Can split bills to pay with a friend
  • Easy to set up accounts
  • Instant money transfer to the user's contact list

Cons

  • The trading stocks interface is difficult for newbies
  • No interest rates 
  • Can't set up bill payments or direct deposits

#5 PayPal

PayPal is an online payment service that is well-recognized internationally. With its features, Canadians can use this as an alternative to Cash App. You can send money even if the recipient is abroad or vice versa. 

Features such as sending money through the email address or phone number are used in the app. It only requires the recipient to have a Canadian bank account linked to PayPal. In this setup, transferring money within Canada is free, including when you use your PayPal balance. 

Sending and receiving money through domestic personal transactions are free for bank accounts or PayPal balances, while cards are charged 2.90%. International transfers are charged depending on the receiver's location, as shown in the table below. 

Recipient’s RegionFees
Europe and United States$2.99 CAD (plus an additional 2.90% + fixed fees for debit/credit cards)
Other$4.99 CAD (plus an additional 2.90% + fixed fees for debit/credit cards)

The fixed fees applied by PayPal in every international transfer depend on the location of the recipient, but tend to range from about $0.30 – $1.00 CAD.

Best For: Canada to Canada, Canada to abroad, and vice versa

Pros

  • Free to use when sending money within the country
  • Easy to transfer 
  • Multi-currency accounts
  • Allows international and domestic transactions
  • Supports merchant features
  • Secured transactions 

Cons

  • Expensive transfer fees for overseas transactions
  • It can freeze and delay funds for months
  • Unsecured digital purchases
  • Limited transfer
  • The target for scams and phishing

Is Cash App Safe?  

Cash App is safely equipped with high-level encryption with fraud detection technology to secure your personal information and money. However, the money in your account is not insured by FDIC. 

Cash App Canada FAQs

Can I Open a Cash App Account in Canada?

No, you can't open a Cash App account in Canada because it's unavailable here. Instead, alternative money transfer platforms like KOHO, Wise, and Interac e-Transfer provide Canadians with features similar to Cash App. 

Is a Cash App U.S. to Canada Transfer Possible?

No, transferring money using a Cash App from the U.S. to Canada is not possible since the app is exclusive in the U.S. and U.K. With that said, users can only transact within these countries. There are still no plans for the app to expand its services to other countries. 

What Can Canadians Use Instead of Cash Apps?

Canadians can opt for several alternatives for Cash App. The leading platforms in the country can use our Interac e-Transfer, Wise, and Wealthsimple Cash. 

Does Canada Have Venmo or Cash Apps?

Canada does not have a Cash App or Venmo. Venmo only extends its services within the U.S., while Cash App is only available in both U.S. and U.K. Canadians can alternatively use Interac e-Transfer, Wise, and Wealthsimple Cash.

Wise offers money transfers from Canada abroad (and vice versa), while Wealthsimple Cash and Interac e-Transfer operate exclusively within Canada. 

What Payment Apps Work in Canada?

Many payment apps work in Canada. The top apps Canadians can use are Google Pay Canada, PayPal Canada, Samsung Pay Canada, Apple Pay Canada, Wise, and Wealthsimple Cash. These apps are available for both Android and Apple users. 

Which e-Wallet is Best in Canada?

The best e-Wallet in Canada is Google Pay, Apple Pay, and Samsung Pay. Google Pay and Samsung Pay are compatible with all devices, while Apple Pay is for iPhones only. 

Google Pay may have limited access to other countries, but it is available in Canada. The app allows users to send money to the recipient with a debit card or bank account. 

Samsung Pay is another versatile option that Canadians can choose as a payment app. It allows users to deposit in the receiver's bank directly. A sender can also transfer money for the receiver to pick up in the nearest physical stores. 

Exclusively compatible with iOS users, Apple Pay is a good money transfer alternative for Canadians. 

How Do I Transfer Money from Canada to the USA?

Transferring money from Canada to the USA is possible in three ways. First, you can use payment apps like Wise or PayPal to send money overseas. The downside is the app's transfer fees, but you can always check the overall charges before proceeding. 

Second, you can send money directly from bank to bank or through wire transfers. The third is to send via money transfer services with physical stores such as Western Union. However, all of these methods are costly. 

What is the Cheapest Way to Send Money From Canada to the USA?

The cheapest way to send money from Canada to the USA is through money transfer apps such as Wise. It's a convenient method and allows you to compare the transfer fees of one app to another. A foreign exchange broker is another option, wherein you need to deposit the money to the broker's account. Then, they'll exchange it and transfer it overseas. 

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