KOHO Mastercard Versus Wealthsimple Cash: Which Prepaid Card Is Right for You?

KOHO and Wealthsimple are some of the first names that come to mind when you think of prepaid cards in Canada. These two companies are often compared despite the fact that they are not similar. On the one hand, KOHO offers a prepaid card with a subscription plan, and on the other, Wealthsimple Cash offers a free card that allows you to receive cash back in cash, stocks or cryptocurrencies. Given the free card and breadth of Wealthsimple’s financial product offering, it is probably the best prepaid card for a majority of Canadians. Read our article to learn more about both cards and make an informed decision.

Introduction to KOHO and Wealthsimple Cash

KOHO and Wealthsimple are very different companies. Registered and licensed in Canada, both companies offer a variety of financial products and services. Best known for its financial advice, Wealthsimple has significantly disrupted the nature of investing and banking in the country. The company originally offered an online investment platform. Today, however, it offers much more, including Wealthsimple Cash which allows users to earn interest on deposits. Based in Toronto, the company is primarily owned by Power Corporation and has a good reputation.

On the other hand, there is KOHO which offers prepaid cards which can also be used to cover daily expenses and earn interest on deposits. Established in 2014, KOHO has partnered with People’s Trust to offer the KOHO Mastercard prepaid card. Based in Vancouver, the company was founded by Daniel Eberhard to provide users with an affordable way to shop.

Fees for both prepaid cards and accounts

KOHO and Wealthsimple work with Mastercard to issue prepaid cards. These cards are accepted at all physical and online stores that accept Mastercard, including international stores. Both cards work similarly but differ in terms of fees, rewards, and limitations. Here’s a little breakdown to help you compare the two options:

From the outset, KOHO seems less attractive given its fees, which are slightly higher than those of Wealthsimple. But it’s all a question of balance. Can the KOHO card offer enough rewards to offset its fees?

Rewards of both cards

It may come as a surprise to some, but prepaid cards often come with rewards. Both KOHO and Wealthsimple offer attractive discounts. KOHO works with many partner stores that offer all kinds of products, including gas and grocerie stores. The Essential plan offers 1% cash back on groceries, meals, drinks and transportation. From KOHO partners, you can get an additional cash back. Some of the big names you can choose from include Buffalo, Pizza 73, Baskin Robbins, Bounce, Kernels, Attitude, Contiki, and Frank and Oak.

What we liked the most about this company is how easy it is to use these offers. You do not need to take eligibility tests to enter codes to qualify. You will be eligible to earn rewards every time you visit a partner store and make a qualifying purchase. Plus, KOHO lets you earn 5% interest on your balance.

On the other hand, Wealthsimple Cash has an effective and simple rewards system. You get 1% back on all your purchases, with a few exceptions. People interested in cryptocurrencies and the stock market will be happy here. The company allows users to deposit their cash back into digital coins and stocks. Plus, the interest rate on your balance is 4%, which is respectable, although it’s a bit less than KOHO.

Opening a new account with KOHO and Wealthsimple Cash

The registration process can be a crucial step. Some companies have a long list of requirements and the process can become tedious, but you will not face such difficulties with Wealthsimple and KOHO. You can open a new account online by downloading the KOHO or Wealthsimple mobile app.

You can request a physical card once your Wealthsimple Cash account is up and running. This can be done from the app. The same goes for KOHO. You will find the Cash card icon in the upper right corner of your screen. The card will be delivered to your physical address. The process can take up to three weeks; However, you will have the option to set up your digital card and start using it immediately. Comparatively, KOHO is a bit faster. You will receive your KOHO Prepaid Mastercard in approximately 10 business days.

KOHO and Wealthsimple Cash will not ask you for a credit report because no credit check is necessary. You can apply for a card even if you have a bad credit score. In both cases, however, you will be asked to provide information to verify your identity and address. The documents provided must be valid and your ID proof of your address must not be more than 90 days old.

Accepted documents include driving licenses, passports, utility bills, etc. Currently, only Canadian residents and citizens can obtain these cards. You must have a Canadian address to receive your card because both KOHO and Wealthsimple send prepaid cards by mail.

Which company has the best mobile app?

In our opinion, KOHO stands out in terms of its app because of its unique features. The app contains practical tips that can help you understand how credit works and what you can do to improve your finances. Another nice feature is the tracking option which allows you to keep an eye on your spending habits. Pay special attention to this section, as it is very detailed and offers some interesting tools. You will find exciting graphics that make the information easier to understand. The Wealthsimple Cash app doesn’t have many advanced features, so you’ll have to budget elsewhere!

The Verdict

If all you want is a prepaid card, then the Wealthsimple Cash card may be a great option. It offers impressive benefits, with respectable cash back and interest rate.

On the other hand, KOHO is more than prepaid card. It is a tool that helps you manage your budget and your savings. However, it comes with certain fees. But if you need these tools, they are worth the investment.