Posted on 28/10/24 11:35 am

The American startup Moneylion began relatively late, in 2013, but quickly gained traction and now has 2 million active users—a significant number even by American standards. I chose it for my review due to two unique product ideas. They may not have had a major impact on the company's business, but they are intriguing in their own right, and I haven’t written about them before. A little later, after I explain what Moneylion is, I’ll tell you how to delete your account.
First, Moneylion pays users for daily app launches. This model is often seen in games and services like LinguaLeo, where users earn in-app currency. Here, however, the customer earns nearly real money—about a dollar per day—which can be exchanged for gift cards from stores.
For a startup, these cards might cost about half their face value. But Moneylion still incurs an additional margin of around 50 cents each time a user opens the app. This approach is comparable to the commission taken by Yandex.Taxi for each trip. However, in Yandex.Taxi, the passenger opens the app for a specific purpose, while in Moneylion, users earn rewards just by logging in for free. It’s good to be a bank.
The second interesting feature is the low-cost credit subscription. Clients pay $29 a month and receive access to lower borrowing rates if needed. Moneylion benefits in both cases: if users aren’t careful with their finances, they might end up paying more, which increases revenue. If they are careful, this improves their credit scoring, which allows Moneylion to further reduce interest rates. However, more often than not, users may not be so precise with their spending.
Together, these features create a unique effect—logging in daily can essentially offer the privileges of a paid subscription for free. The startup uses this feature heavily in its PR, attracting ad-hungry users who may also interact with other services on the app.
Moneylion has raised $95 million in investment.
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