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Business Operations Business Models

How Does Qapital Make Money (Business and Revenue Model)

The Qapital business model

Qapital logo
Here’s what you should know:
  • What is Qapital, and how does Qapital work?
  • How does Qapital make money?
  • Subscription Revenue (Platform Fees)
  • Interchange Fees (Qapital Visa Debit Card)
  • Qapital profit and revenue
  • What is the Qapital business and revenue model?
  • Qapital funding, net worth, and valuation
  • Qapital subsidiaries, acquisitions, and exits

How does Qapital make money? Here is a full, in depth, breakdown of their two (2) revenue streams and the different products and services they offer, as well as the Qapital business and revenue model, how much money Qapital makes per year, and how Qapital works.

What is Qapital, and how does Qapital work?

Qapital is a personal financial app that is designed around its users saving and investing money based on their spending behavior.

Founded in 2012 by Erik Akterin, George Friedman, and Katherine Salisbury, Qapital now has more than 2 million users and at least $23.1 million in assets under management (AUM).

So, how does Qapital work? To use Qapital, you can simply start by downloading their app from the Apple App Store or Google Play store, creating an account, choosing a membership plan, and linking your bank account(s).

Once you’re all set up, you can begin using Qapital to create savings goals, automate your budget, choose an investment strategy, and more.

Some of Qapital’s competitors include Acorns, Digit, DaveChimeMint, WealthfrontBetterment, SoFi, Stash, Personal Capital, and other savings and budgeting apps.

Qapital App in Apple App Store | Qapital Business Model | How Does Qapital Make Money? | How does Qapital work?
Source: Apple App Store | Qapital

How does Qapital make money?

According to Qapital, Qapital has more than 2 million users on its platform and at least $23.1 million in assets under management (AUM), as of December 31, 2020. (this is the latest verifiable info)

So how does Qapital make money off of all these users and assets under management (AUM)?

Below is a breakdown of how much money Qapital makes and its revenue model. Including all revenue streams and how much they charge for their services.

Here are the 2 ways how Qapital makes money in 2022

Qapital has a revenue model that makes money in two (2) ways; through subscription revenue and interchange fees they collect from their Qapital Visa issued debit card transactions.

#1. Subscription Revenue (Platform Fees)

Qapital makes most of its money through the subscription revenue it collects from all users on the platform.

There is no free version of Qapital. So after a 30-day free trial, Qapital charges all of its users $3 to $12 per month if they want to continue using their services (depending on the plan they choose).

As noted above, Qapital has at least 2 million users on its platform. And as mentioned, Qapital does not offer a free tier. This means that all of their 2+ million users are each paying $3 to $12 per month, which comes out to somewhere between $6 to $24 million of subscription revenue per month for the company. Totaling a minimum of $72 million per year.

And for that $3 to $12 per month fee, users will get access to things like creating unlimited personalized savings goals, getting cashback rewards and discounts with the Qapital Debit Card, automating savings from paychecks, and more – depending on the monthly plan they choose. Which you can see more of below.

How much does Qapital cost? (Qapital subscription fee)

  • Basic: $3 per month
  • Complete: $6 per month
  • Premier: $12 per month

Note: Qapital has 2+ million users paying at least $3 per month to use their services.

#2. Interchange Fees (Qapital Visa Debit Card)

Qapital also makes money off of the interchange fees they receive from their Qapital debit cards that are issued to users who have Qapital accounts.

How does Qapital make money from interchange fees? Qapital makes money whenever a Qapital cardholder swipes their Visa issued debit card.

When this happens, Visa charges the merchant an interchange fee between 1.15% + $0.05 to 2.40% + $0.10 of the charge amount. From that, Visa gives a percentage of its interchange fee revenue to Qapital. Although it’s unclear what percentage Qapital receives from Visa.

Qapital Visa Debit Card | Qapital Business Model | How Does Qapital Make Money | How Does Qapital Work
Source: Qapital

Qapital profit and revenue

Qapital has not released any official reports in regard to company earnings.

Note: Because Qapital is a privately held company, they are not required to make their annual reporting, such as Form 10-K’s, pubic.

What is the Qapital business and revenue model?

Qapital makes money through a few revenue models that they combine within their company, they are:

  • Subscription business model
  • Fee for service (FFS) business model
  • Business to business (B2B) business model
  • B2B2C (partnerships) business model

Qapital funding, net worth, and valuation

Looking at Qapital’s Crunchbase profile, Qapital funding is unclear but has a post-money valuation of $100 million to $500 million as of April 17, 2018.

Qapital subsidiaries, acquisitions, and exits

To date, Qapital has not made any acquisitions, investments, or exits.