Chime vs Cash App comparison makes sense if you are looking to experience reliable mobile money outside your traditional brick-and-mortar bank. As someone new to both platforms or an existing user planning to switch to the other, it can be challenging to pick one since it may not be worthwhile running both at the same time (simply because a majority of their features are similar). The truth? the best pick depends on how you plan to bank, i.e., the features that keep you or your business going.
With both Chime and Cash App, you can send money instantly to your friends and family, or even split expenses effortlessly with just a few taps on your phone. These apps have transformed the way we handle our money, offering a simple and user-friendly experience that puts you in control. But one might have an advantage over the other, depending on the banking features you prioritize. Stick to this insider review to find out about the features, benefits, and unique offerings of both Chime and Cash App to help you make an informed decision.
Chime vs Cash App comparison
There are pretty many questions answered here, including even the questions you don’t know to ask about both mobile money apps. We’ve expertly attempted to cover all the important aspects to keep you guided when deciding to sign up on any of these platforms. Note also that our comments are based on real-user experience, and this website has no affiliation with any of these money apps.
Cash App and Chime comparisons are always a tough one, but many would say “Go for Chime”. The truth is that it really depends on your banking priorities. That’s to say that there are features in Chime absent in Cash App and vice versa.
You can liken this comparison to reviews you read about specific apps before downloading them. You’d find some people rate an app with 1 star while others praise them with 5 stars. That’s because while such an app served the purpose of Reviewer A, it failed to reach Reviewer B’s expectations. But that doesn’t make it a bad app at all. You’d even be amazed that you get to consider the same app reliable. That’s because it meets your expectations, except it may lack functionalities you don’t particularly prioritize.
Are Chime and Cash App the same?
Let’s talk about what both apps are all about. Cash App is an app that allows you to make payments using your mobile phone. On the other hand, Chime is a mobile banking app that offers many of the same features you would find in a regular bank account, but in a convenient digital format.
Now that we’ve got that out of the way, let’s check out some of the similarities and differences. Not forgetting their pros and cons too. But first, let’s get some history on both apps.
Chime Overview
Chime was created because the CEO and Founder, Chris Britt, couldn’t find a checking account he liked. It is different from most banks since it focuses on the convenience of users and keeping their information safe. It’s not just another regular bank account.
Chime is intended to help you manage your money better and even save more through an easy-to-use platform that gives customers control over their finances, the biggest problem financial companies should solve.
Since 2014, Chime has grown a lot. It started with about 100,000 users and now has a user base of more than 14.5 million as of 2022.¹
Chime’s success has been credited to its unusual approach to banking. They listen to what customers say and designed the app based on users’ feedback. Most of Chime’s users, 60% of them, are under 35 years old. Plus, Chime doesn’t charge high fees for its banking services.
Furthermore, Chime is insured by the FDIC, up to the standard maximum deposit insurance amount of $250,000 through their partner banks including, Stride Bank, N.A. or The Bancorp Bank, N.A. Members FDIC.² This means your money is safe.
Cash App Overview
Cash App, on the other hand, is a mobile app that lets you send money to others using their phone number or email, just like PayPal. Cash App is not a bank.
With Cash App, you can send money to anyone by email, even if they don’t have the app. You can also ask your friends to pay you back or split the bill with a simple click, and it’s free for personal and business use.
Furthermore, Cash App helps small and medium-sized businesses accept credit card payments without fancy machines. It gives them a complete payment system they can customize to their specific model.
In addition to the aforementioned, Cash App also offers direct deposit services and gives out debit cards you can use anywhere Visa is accepted. If you’re interested, you can even use Cash App to invest in cryptocurrencies and stocks, even as a beginner.
Pros of Chime: why should I choose Chime Bank?
1. No monthly fees
Chime believes in making banking simple and affordable for everyone. They don’t charge any monthly fees for their accounts because they want to encourage users to manage their money responsibly and increase their financial knowledge. Chime goes a step further by refunding any fees that you might be charged by their partnered banks.
2. FDIC insured
Your money is safe with Chime because their accounts are FDIC insured. This means that if Chime Bank were to close, your deposits would still be protected. Chime uses FDIC pass-through insurance, ensuring that each depositor is insured for at least $250,000, including both the principal amount and any interest earned.
3. No overdraft fees
Worried about overdraft fees? With Chime, you don’t have to be. They don’t charge any overdraft fees, and you can link your checking account with a debit card for added convenience. Although there is no overdraft fee, there may be out-of-network or third-party fees associated with ATM transactions.³
4. No foreign transaction fees
When it comes to foreign transactions, Chime has you covered. They don’t charge any fees when you make payments in currencies other than US Dollars or a different country. Say goodbye to surprise fees when you’re traveling or making international purchases.
5. Free spam protection
Protecting your financial information is a top priority for Chime. They offer free spam protection for text messages, phone calls, and emails, so you can feel confident that your money is safe from fraudulent activity.
6. Attractive high yield
Lastly, Chime’s savings account offers an attractive high yield of 0.50% APY, helping you grow your savings faster. It’s just another way Chime rewards its users for choosing a smarter and more affordable banking option.
Pros of Cash App: why should I choose Cash App?
1. User-friendliness
All you need is an email or phone number, and they’ll verify your identity with a 4-digit PIN if needed. Once you’re verified, simply enter the amount you want to send, and Cash App will use your phone’s GPS to find nearby users.
2. Faster money transfers
They guarantee that the money you send will arrive in the recipient’s Cash App wallet within seconds. Cash App uses a secure network of Cash servers instead of traditional banks or credit cards, which can sometimes cause delays for larger transfers.
3. Sending money from Cash App to Cash App is free
Cash App customers can send money without any transaction fees. Cash App also offers Cash Invoices for business users, which can be paid through Cash-to-Cash transfers.
4. Available on both Android and iOS
You can download the app on almost any Android device. For iOS, Cash App works on devices running iOS 8 or newer versions.
Additional feature-pack functionalities:
- Users are given a cash bonus when a friend signs up through their referral code.
- Cash App also gives users the option to invest in stock without minimum or maximum restrictions.
- The ‘cash boost’ service offers special discounts to users.
Chime cons: why should I avoid Chime Bank?
The Chime Vs Cash App Comparison above discusses the pros, now let’s consider the cons, beginning with the Chime app.
1. Live support is sometimes slow
You can speak to live customer service at Chime any time you need help. Chime has live agents standing by 24 hours a day, 7 days a week to chat with directly through the Chime app or call +1 (844) 244-6363. But there is a question of consistency.
2. ATM charges
When it comes to using ATMs, there can be charges if you use an ATM outside of Chime’s network or in a currency other than US Dollars. You can withdraw up to $515 per day via ATM at any ATM at a $2.50 fee every time you make a withdrawal from an out-of-network ATM.
3. Spending limits
Chime users have spending limits, which means there’s a maximum amount of money they can spend per month. It’s important to keep this in mind if you decide to go with Chime. Specifically, fees incurred as well as ATM and over-the-counter cash withdrawals, funds withdrawn at a POS, and purchases are all subject to a daily $2,500 maximum amount using your card.
4. Limited to the US
To open Chime, you must be a citizen or a permanent resident of the 50 United States and Washington, DC. However, you can use your Chime card internationally wherever Visa is accepted at no cost.
Cons: why should I avoid Cash App?
- Cash App is only available in the US and the UK. If you’re not resident in any of these countries, you won’t be able to sign up for Cash App.
- Cash App offers basic features but lacks advanced options. While you can send money to other Cash users or those with the Cash App, the app currently doesn’t have additional features like advanced charting or technical analysis tools (which are not essential though). However, Cash is actively working on introducing more features in the future.
- No 24/7 phone support. You can only reach Cash App Support on Monday through Friday, 9:00 am to 7:00 pm EST by phone by calling 1 (800) 969-1940.
- No savings interest. Unlike Chime, Cash App savings do not earn interest on your balance.
Chime and Cash App comparison: similarities and differences
While comparing Chime and Cash App, it won’t be complete to overlook their similarities and differences. Besides, Chime also launched peer-to-peer payment similar to Cash App. They may operate similarly but Chime and Cash App have their priorities. That’s why understanding your banking needs can better help you decide whether you should sign up on Chime or Cash App.
1. Both can send and receive money
Both Chime and Cash App let you send and receive money from other people using the app. It’s an easy way to transfer funds to friends or family. You may also be able to send money to third-party apps, for example, from Cash App to Venmo, or receive money from a third party, for example from Netspend to Cash App.
2. Both are mobile banking apps
Both apps, Chime and Cash App allow you to do your banking on your smartphone. You can check your account balance, see your transactions, and manage your money from anywhere.
3. Debit card support
Chime and Cash App offer you a debit card that you can connect to your account for spending. Both Chime and Cash App (Cash Card) offer Visa debit cards, so these are acceptable anywhere in the world where Visa is allowed. You can use it to make purchases or get cash from ATMs. Chime, for example, won’t charge you for withdrawing money with your card internationally.
4. Direct deposits
Both Cash App and Chime allow you to receive your paycheck or government benefits directly into your account. This means you don’t have to wait for a physical check to access your money.
5. Limited country support
While Cash App is only available in the US and the UK, you can only open Chime in the US. None supports international transactions like PayPal and others.
6. Both offer virtual cards
Chime offers virtual card support, and so does Cash App. So, if you don’t fancy moving around with your physical card, both apps got you covered.
Chime and Cash App comparison: differences between Chime and Cash App
While there are similarities, there are also some differences between both apps.
1. Payment platform
Primarily, Cash App is a peer-to-peer payment platform with some additional features, while Chime is a mobile-first digital bank
Update:
Chime launched P2P payments similar to Cash App.
2. Budgeting and saving tools
Chime offers tools to help you budget and save. It helps you track your spending and encourages you to save money automatically and helps you manage your finances better.
3. Cryptocurrency and investing
Unlike Chime, Cash App gives its users features like buying and selling cryptocurrencies and investing in stocks or funds. It’s for people who are interested in exploring investment opportunities and growing their financial portfolio.
4. Cash Card Boosts
Cash App has a feature called “Boosts” that gives you discounts or cashback rewards when you use your Cash Card at certain stores. It’s a way to get extra benefits when you make purchases.
5. Cardless payment support
Cash App offers the Cash App Pay feature which allows you to pay merchants by scanning a QR code. You can use this cardless feature with both in-person and online merchants. The payment is instant. This feature is not currently available on Chime.
Sending money between Chime and Cash App
Fortunately, you can send money between Chime and Cash App. So, if you ever have to send money between both apps, you just need to link the accounts as explained below.
Can I send money from Chime to Cash App?
Chime allows you to send money to Cash App. You just need to link your Chime debit card or bank account to Cash App and then complete the transfer.
Can I send money from Cash App to Chime?
You can also send money from Cash App to Chime. In your Cash App, use the feature for linking a debit card/credit card and or bank account to add your Chime card. After linking your Chime card to Cash App, you can use Cash App to fund the card.
Things to look for when choosing a payment app
While our Chime and Cash App comparison has revealed the most common features in both apps, below are some features you might want to look for in a mobile payment app to help you make your decision.
1. Features and functionality
See what each app offers. Do you need basic payment abilities or want extra features like bill payments, budgeting tools, or investment options? Choose the app that suits your specific needs.
2. Security
Make sure the app keeps your financial information safe. Look for things like encryption (which means your data is scrambled and protected), strong ways to prove it’s really you (like using your fingerprint or a code), and if it follows the security rules. Both Chime and Cash App are secure mobile payment apps.
3. Easy to use
Consider how easy it is to use the app. Look for ones that are simple to understand and navigate. Both Chime and Cash App have unique and user-friendly interfaces. So, you won’t have difficulty finding the feature you are looking for on both platforms.
4. Device compatibility
You can use Cash App and Chime on most operating systems and devices, including Apple iOS and Android.
5. Multiple payment options
See if the app lets you pay with different methods, like credit cards, debit cards, or transferring money from your bank, etc. Having more options is good because you can choose what works best for you. Cash App, for example, lets you pay by just scanning the QR code, thanks to the Cash App Pay feature.
6. Connects to your bank
If you like managing your money through a bank, make sure the app works well with your bank accounts. Some apps let you do lots of things with your money like pay bills or check balances. Both Chime and Cash App offer this support. Moreover, you are able to withdraw your funds indirectly without your bank account using your designated card.
7. Transaction fees
Pay attention to any fees the app might charge you for using it. Some apps have fees for certain types of transactions, like sending money to another country or taking out cash. It’s good to compare fees to find the cheapest option.
For Cash App, standard deposits are free and arrive within 1-3 business days. However, instant deposits are subject to a 0.5% -1.75% fee (with a minimum fee of $0.25). For Chime, you pay a $2.50 fee for using an ATM outside of our fee-free network.⁵ However, no fees for minimum balance and overdraft.
8. International support
If you are looking to make payments internationally, neither Cash App nor Chime is for you. While Cash App supports the US and the UK, Chime only supports the US. But with your card, you can withdraw money anywhere in the world where a Visa card is accepted.
9. Customer service
You do need constant customer support. Chime and Cash App may not be the best in this aspect but you can expect quality customer service. Moreover, while Chime customer service is available 24/7, Cash App customer service is only available from Monday to Friday between 9:00 am to 7:00 pm.
Conclusion: Which is better between Chime and Cash App?
The bottom line is that none is better than the other. Whether Cash App or Chime is better depends on how you want to bank—send or receive money from people.
Read also: how experts analyze crypto rise and fall
Resources
- 2022 Online Bank Ranking: Chime At The Top, Current Coming On Strong. Forbes
- Are Chime Accounts FDIC insured? Chime
- Overdraft worries? Not with SpotMe. Chime
- How to Contact Chime Customer Service. Chime
- ATMs. Chime
We will send more information to your email. Don't miss out.
