Chime vs Cash App – Product & Usage Comparison [2023 Review]

Last Updated on September 23, 2023

A Chime vs Cash App comparison is worthwhile if you are wondering which mobile money app will give you a better experience outside your traditional brick-and-mortar banks.

As someone new to both platforms or an existing user planning to switch from one to the other, it can be difficult to pick one since it may not be worthwhile running both at the same time since the majority of their features are similar – Both Chime and Cash App let you quickly send money to your friends and family. You can also split bills effortlessly with just a few taps on your phone. These apps have made managing your money much simpler and user-friendly, giving you more control.

But you might want to know what sets one apart from the other. The fact is it all comes down to the specific banking features that matter most to you or your business.

In this review, we’ll take a closer look at the features, benefits, and unique offerings of Chime and Cash App, so you can make an informed decision on which one is best for you.

Chime vs Cash App Comparison

Is Chime and Cash App the same?

Let’s start by talking about what both apps are all about. Cash App is a mobile money app that lets you make payments using your smartphone. On the other hand, Chime is a banking app that offers many of the same features you would find in a regular bank account offered by traditional banks, but in a more convenient digital format.

Now that we have gotten that out of the way, let’s check out some of the similarities and differences of both apps. Not forgetting their pros and cons too. But before we delve into that, let’s get a bit of history on both of them.

Meanwhile, you can send money from Chime to Cash App.

Chime Overview

Chime was founded back in 2012 by Chris Britt, the CEO, and Ryan King, the CTO in San Francisco, California, with a goal to make banking less complicated and more easily accessible for those without access to traditional banking services. They officially launched Chime on April 15, 2014, and even featured it on the Dr. Phil Show.

The main idea behind Chime is that banking should be easy, helpful, and free. And as of January 2023, Chime has 21.6 million account holders, according to Contrary Reports.

Chime does things differently from traditional banks. Chime’s business model doesn’t rely on overdraft fees, monthly service fees, service fees, minimum balance requirements, and more.

Instead, Chime partners with local banks to create financial products that put their members first. Thus, leading to better and cheaper options for everyday Americans who aren’t being served well by traditional banks. Furthermore, Chime is insured by FDIC, which means your money is protected.

Cash App Overview

Cash App was created by Block, Inc. (formerly Square, Inc.) on October 15, 2013, under the name “Square Cash” as a mobile payment service available in the U.S. and the U.K. that allows users to transfer money to one another (for a 1.5% fee for immediate transfer) using a mobile phone.

Users can request money from and transfer to other Cash App accounts using their phone number, email, or a unique username called “$cashtag” (or in the UK, it’s called £cashtag). When you send money, you can also include a message if you want.

Cash App gives you two choices when you want to transfer money into a third-party bank account: you can do it for free, but it takes 3 to 5 business days, or you can pay a 1.5% fee to make it happen instantly.

In 2018, Cash App added a feature that lets its users (adults only) buy and sell a type of cryptocurrency called bitcoin. You can also send Bitcoin to other Cash App users, put Bitcoin into the app from somewhere else, or send it to an external wallet.

Also, buying and selling Bitcoin on Cash App is really fast and doesn’t need confirmation from a blockchain, which is how most other cryptocurrency exchanges handle Bitcoin transactions.

As of September 2021, Cash App had over 70 million users and grossed over $1.8 billion in profit.

Pros of Using Chime

In this section, you will find out why you should choose Chime?

Chime vs Cash App

1. No monthly fees

Where traditional banks like Chase and Wells Fargo will charge you monthly service fees of up to $25 and $35 respectively, Chime doesn’t charge any monthly account fees. Plus, no minimum balance fees or requirements. Chime users also get a fee-free overdraft of up to $200 on Chime Debit Card purchases.

2. Get paid up to two days early with direct deposit

Chime enables its users to get their paychecks deposited into their accounts up to two days faster than most traditional banks would. All they have to do is set up direct deposit on their Chime account and wait for their paychecks to roll in.

3. Deposit checks from anywhere

Chime is also in the instant check deposit business. Just take a picture of your checks and you are done.

4. Insured funds

All funds in Chime deposit accounts are FDIC-insured through The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC.

5. High-Yield Savings Account

Chime offers a 2.00% Annual Percentage Yield (APY) on their high-yield savings account. That’s 9x the national average

6. Grow your savings automatically:

Chime offers ‘Round Ups’ that let you save change on every purchase. The ‘Save When I Get Paid’ feature also helps you automatically save a percentage of each paycheck.

7. Free cash deposits at Walgreens

You can easily deposit cash conveniently at over 8,500 Walgreens locations for free– that’s more walk-in locations than you’d have using any bank in the US

8. Fee-free ATM withdrawals at Chime Locations

Chime users can easily make with fee-free ATMs1 at stores like Walgreens, 7-Eleven, Target, Circle K, Dollar General, and CVS Pharmacy. Just launch the ATM Finder in your Chime app to find ATMs near you. Plus, you also get real time transaction alerts.

Pros of Using Cash App

Still on the topic of Chime vs Cash App, below are the reasons you want to choose Cash App over Chime.

1. Cash App is available for both Android and iOS devices
   • You can download the app on almost any Android device.
   • For iOS, Cash App works on devices running iOS 8 or newer versions.
2. Last money transfers
   • They guarantee that the money you send will arrive in the recipient’s Cash App wallet within seconds.
   • They achieve this by using a secure network of Cash servers instead of traditional banks or credit cards, which can sometimes cause delays for larger transfers.
3. Ease of Use
   • Users can request money from and transfer to other Cash App accounts using their phone number, email, or a unique username called “$cashtag” (or in the UK, it’s called £cashtag).
   • When you send money, you can also include a message if you want.
4. Cryptocurrency Support
   • Cash App allows its users to buy and sell bitcoin cryptocurrency. Although they have to be adults.
   • Users can also send bitcoin to each other using their $cashtag, deposit bitcoin into the app from another source, and withdraw their bitcoin to an external wallet.
   • Now, unlike other cryptocurrency exchanges, buying and selling bitcoin on Cash App is instant and does not require confirmation on the blockchain which makes life so much easier.
5. Free Money Transfer
   • Cash App users can transfer money to third-party bank accounts for free. This usually takes 3-5 business days.
   • Even unverified users can send up to $250 per week and receive $1,000 per month, making it a great option for those looking for anonymous money transfer services.
   • However, there’s an option to increase the weekly sending limit to $7,500 per week and totally remove the receiving limit by verifying your account.
   • All that’s mostly needed are; your legal name, date of birth, and, in the US, the last four digits of your social security number.
   • You can increase Cash App limit from 2500 to 7500.
6. Stock Trading
   • Adult Cash App users in the United States can buy and sell fractional shares of most publicly traded companies with a minimum of $1.
   • The only caveat is that stock trading on Cash App follows the regular market hours of 9:30 a.m. – 4:00 p.m. EST.
   • Stocks can be managed from the app’s investing section.

Cons of Chime

In the previous sections comparing Chime vs Cash App, I discussed the upsides that might make a particular one of them your go-to mobile app. Now, this section is about the downsides. So, let’s start with Chime. Why should you avoid Chime?

1. The Tend to Lack of Personal Touch

One downside of Chime is the lack of personal touch. While their online banking system is excellent, there is no option for those who are old-fashioned and prefer to walk into their bank to have a person-to-person discussion with their bank. Although Chime does provide 24/7 customer support, it’s just not going to cut it for old-timers.

2. Spending Limits

You can withdraw up to $515 every day from an ATM, but there’s a $2.50 fee each time you use an ATM that’s not in Chime’s network. Plus, the ATM you use might add more fees at their discretion.

Now, if you prefer going to a bank or credit union to get cash, you can do that with your Chime debit card. It’s called an “Over The Counter Withdrawal,” and it also comes with a $2.50 fee for each withdrawal. You can withdraw up to $515 this way in a day.

Lastly, you must note that everything you spend or take out, whether it’s from an ATM, over the counter at a bank, or when you buy things, can’t go over $2,500 in a single day. Furthermore, you must note that ATMs, stores, and banks might have their own limits and fees. Refer to Chime’s page.

3. No ATM Cash Deposits

Chime does not accept deposits of any kind from an ATM. You can only deposit cash to your Chime Checking Account at certain stores (there are over 60,000 of them) with GreenDot.

Just ask the cashier to add the cash to your Chime Checking Account at the register. You can deposit up to $1,000 in cash per 24 hours or up to $10,000 in a month.

You also have to remember that if you use third-party money transfer services to deposit money into your Chime Checking Account, they might have their own fees and rules about how much and how often you can load cash into your Chime Checking Account daily, weekly, or monthly.

Cons of Cash App

So, for this section of the Chime vs Cash App battle, we are looking at the downsides of using Cash App. That said, why should you avoid Cash App?

1. Limited Availability

Cash App is currently limited to the United States and the UK. This means that if you’re not resident in any of these countries, you won’t be able to sign up for Cash App.

2. Profit Based Business model

Although Cash App is initially free, any additional services beyond standard money transfers are available for small initial fixed costs plus percentage fees.

One of these services is instant money transfers to third-party accounts which attract a service charge of 1.5%, and they are also subject to certain financial regulations.

In addition to this, users who do not have a direct deposit account set up with Cash App are usually charged a $2 fee for any withdrawals from an ATM.

Lastly, businesses that accept Cash App as a form of payment for services are mandated to charge a transaction cost of 2.75%.

3. Fee-Based Cryptocurrency Feature

Now, while we all applaud Cash App for its bitcoin novelty, it has to be said that it doesn’t come for free. Cash App allows its users to buy and sell Bitcoin for a small service fee. However, this amount depends on the current Bitcoin market volatility.

Similarities Between Chime and Cash App

While this review is really about the contrastive features of Chime vs Cash App, both apps do share similarities. Below are the similarities between Cash Ap and Chime.

1. Both Send and Receive Money

Chime and Cash App make it super easy to send and get money from others using the app. You can easily split bills, pay back a friend, or send money to loved ones, on both apps simply with a few taps on your phone.

2. Support for Instant Check Deposits

Both Chime and Cash App give their users the ability to deposit checks on their smartphones. And it has to be said that both are quite easy to use when it comes to depositing checks.

However, Chime is slightly better in this regard as you can receive paychecks deposited using this feature up to two days faster than any other app out there. And we’re not even talking about instant transfer options on both apps here.

3. Mobile Banking

The two apps in this comparison allow you to do your banking on your smartphone. You can check your account balance, see your transactions, manage your money, and in Cash App’s case- invest in stocks and cryptocurrency all from wherever you are.

You don’t have to rush to a physical bank branch or wait for statements in the mail; it’s all in your pocket.

4. Debit Cards & Cashbacks

These apps provide you with a debit card linked to your account. You can use this card to make purchases or withdraw cash from ATMs.

Both Cash App and Chime also give users the benefit of earning cashback on any purchases or withdrawals they make. It might seem little but they all add up to a lot of money at the end of the day.

5. Direct Deposits

Both of these mobile payment apps allow you to receive your paycheck or government benefits directly into your account.

Setting up direct deposit on either one of them is quite simple and straightforward. And it also saves their users a lot in terms of fees.

Differences Between Chime and Cash App

You may have noticed a few differences between Chime and Cash App while reading up till this point. Let me bring up a few missed points.

1. Focus and Target Users

Chime is all about offering a less complicated, no-fee banking experience. It’s for folks who just want a simple way to handle their money without any fancy extras. In other words- straightforward.

2. Budgeting and Saving Tools

Compared to Cash App, Chime goes the extra mile by providing tools to help you track your spending and save. It’s simply designed to help you manage your finances better.

While Cash App has also begun implementing some of these features in their most recent app updates, they’re nowhere close to Chime’s in terms of functionality or uniqueness.

3. Cryptocurrency and Investing

Unlike Chime, Cash App takes a different route. It lets its users buy and sell cryptocurrencies and invest in stocks or funds. This is for those who want to explore investment opportunities and grow their financial portfolio.

4. Instant Check Deposits

Both Chime and Cash App give their users the ability to deposit checks on their smartphones. And it has to be said that both are quite easy to use when it comes to depositing checks.

However, Chime is slightly better in this regard as you can actually receive paychecks deposited using this feature up to two days faster than any other app out there. And we’re not even talking about instant transfer options on both apps here.

How to Choose Between Chime and Cash App

1. First, take a look at what each app can do. Do you just want to make simple payments, or do you need extra stuff like paying bills, tracking your budget, or investing money? Choose the app that fits what you need.
2. Make sure the app keeps your money info safe. Look for things like encryption (which means your info is hidden and secure), strong ways to prove it’s really you (like using your fingerprint or a code), and how loopstringent its other security measures are.
3. Consider how easy it is to use the app. Go for mobile payment apps that are simple to figure out and navigate. It’s also helpful if the app saves your payment information and shows your transaction history, so you don’t have to type it in every time.
4. Check if the app works on your device, like an iPhone or Android phone. You have to be sure it runs flawlessly on the devices you plan to use for making payments.
5. Check if the app lets you pay in different ways, like with credit cards, debit cards, or transferring money from your bank. Having more choices is good because you can pick what’s best for you.
6. If you like handling your money through a bank, make sure the app plays nice with your bank accounts. Some apps let you do lots of money stuff, like paying bills or checking how much money you have.
7. 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.
8. Consider how quickly the app can send your money. Some apps do it right away, while others might take longer. If you need to send money fast, it’s good to know how quickly the app can do it.
9. Lastly, you just have to make sure the app has good customer support. It’s really helpful to have someone you can talk to if you have questions or run into problems. Trust us on this one.

Conclusion – Which is Better Chime Vs Cash App?

The bottom line is that none is much better than the other. It all boils down to what works for you at that point in time.

Would you rather have all the features and capabilities of a regular bank account in the palm of your hands at almost no cost to you, and do away with your actual bank account? Then Chime’s what you need.

Or would you prefer to keep your traditional bank app and just have extra stuff to help you with instant transfers to and from friends and family? Then Cash App’s just for you.

So, at the end of the day, it’s all down to individual preferences as both Chime and Cash App have their pros and cons. Whichever one you decide to go with, you’re sure to have a pleasurable mobile banking experience.

Read also: How to Transfer Money from Bank to Cash App Without Debit Card