Mogo Finance Technology this week launched the digital Mogo Spending Account with Platinum Prepaid Visa Card.This is the fourth product in Mogo’s lineup of financial solutions designed to help Canadians manage their financial health; the Vancouver startup says it represents the next step toward its vision of building the best digital banking experience in Canada.
“The launch of our digital spending account represents another important growth milestone for Mogo, bringing us into the large and growing payments market with a highly differentiated solution,” said David Feller, CEO of Mogo. “One of the biggest financial challenges consumers face is overspending, as credit cards are designed to incentivize spending while debit cards make it difficult to stay on budget.”
The digital spending account can be opened for free through Mogo’s iOS mobile app. Funds can be transferred instantly from most bank accounts in Canada into the Mogo Spending Account directly through the app, giving consumers a way to manage their spending without having to change banks.
“Our new spending account is designed to solve the overspending problem,” says Feller. “We are leveraging the power of our technology platform to deliver a digital product that is not only much more convenient, it also gives consumers real-time data to help them manage and control their spending.”
The account is designed to help consumers monitor and control their spending through features such as instant transaction alerts with each purchase along with updated real-time balance. There are no monthly account fees and, unlike a regular credit card, using the MogoCard means there is no risk of overdraft fees or interest charges.
“We’re always looking for ways to offer products that save consumers money so we’re excited to provide this product to customers for free with no monthly fee while Mogo earns the interchange revenue on transactions,” said Greg Feller, CFO. “Moreover, this product is a low-hurdle way for Canadians to add Mogo to their financial wallet and immediately get value and utility they are not getting from their current financial institution.”