How Does Shakepay Make Money? Analyzing Its Business Model
There are no annual fees, no monthly account fees, and you receive your cash back within 24 to 48 hours, a feature that sets it apart from other crypto reward cards. Payments are made using the Canadian dollar balance in your Shakepay app. The Shakepay Card lets you enjoy 1% cash back in Bitcoin on every purchase they make and 2% back on your first $5,000 spent. As a prepaid visa card, it operates much like a debit card and no credit check is required to get the card.
- Shakepay and Newton both offer $0 fees and commissions, but Newton does not have a crypto card.
- Binance, an example of a traditional exchange, would pool all bids and sells for a given currency and then simply match the demand with the supply.
- The price at which you can buy and sell cryptocurrencies on Shakepay is determined by the exchange.
Looking for a convenient way to buy and sell Bitcoin and other cryptocurrencies? This Shakepay review will take an in-depth look at the features offered by this crypto exchange and compare it to some of its top competitors. Finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation.
Shakepay uses an encrypted process for this data that meets Canada’s Personal Information Protection and Electronic Documents Act. He moved back to Montreal and contacted Roy, who was still working at Morgan Stanley. They kept meeting regularly and came up with an idea for a company.
Other Shakepay Features
All in all, Shakepay is arguably the easiest way for Canadians to buy bitcoins. Shakepay acts as a custodian (you can keep your funds in your Shakepay wallet) unlike other non-custodial exchanges like Bull Bitcoin. While their wallet works well, we recommend you send your crypto to your own private addresses.
Shakepay vs. Newton
The longer a user’s streak, the more he or she earns in Bitcoin. In fact, Bitcoin and Ethereum are currently the only currencies that can be traded on the brokerage. The twist is that Shakepay does not charge a commission to conduct those transactions. Shakepay has a comprehensive FAQ section that likely already contains answers to most of your questions.
As you can see, there are plenty of reasons to trust Shakepay as your cryptocurrency exchange. If you’re looking for an easy-to-use platform with a crypto card, Shakepay is the way to go. Newton might be a better choice if you’re looking for a platform that supports more than 70 cryptocurrencies. No, Shakepay makes money on the spread which means you are paying a small markup whenever you buy or sell. Other than these spreads on BTC and ETH, there are no fees on Shakepay.
Shakepay Review 2024: Beginner-Friendly Crypto App in Canada
The company’s first seed round came from NEXT Canada, a startup accelerator program, which normally retain a single-digit percentage of the newly formed company. As previously stated, Shakepay originally introduced the card back in December 2021. Customers can shop at millions of online or in-store Visa-accepting merchants around the world.
This feature is accessible via the Shakepay app, which can be downloaded from the App Store or Google Play. The platform’s commission-free and lightning-fast transactions are a major selling point, allowing you to own your first bitcoin in as little as 10 minutes. Furthermore, the site is secure and trustworthy, as the bitcoins are kept safely offline, giving you control over your money and peace of mind.
CoinSmart prides itself on catering to beginners while being designed by experts aiming to make cryptocurrency accessible to everyone. Unlike Shakepay, CoinSmart also trades Litecoin, Bitcoin Cash, Cardano, Stellar, and more, and they’re constantly adding new currencies to the platform. There are two ways to fund your account with Canadian dollars, and you can also transfer crypto from your bitcoin wallet into your Shakepay account.
The $20 difference in the transaction constitutes the spread for Shakepay. The company offers similar services to users as other companies in the industry. Within this model, Shakepay primarily gets commission-based revenues. The commission applies to every transaction process through the Shakepay platform. It is a common source of income for companies using the fintech business model. Shakepay is one of the best crypto trading platforms in Canada.
However, Shakepay users have several ways of earning free cash and crypto through the app. This includes the $30 sign-up bonus, free Satoshis through the ShakingSats feature and Bitcoin cash back when you make purchases with the Shakepay prepaid Visa card. The buy and sell prices can be found on the Buy & sell screen on the Shakepay app. To toggle between buying and selling, just change the ‘From’ currency between dollars and bitcoin.
Within a year, the company had over 40,000 customers under Shakepay. Shakepay makes money via the spread on cryptocurrency trades as well as through interchange fees from its debit card. Coinbase is one of the most popular cryptocurrency exchanges and has a lot to offer. It’s user-friendly, has a great mobile app, and offers low fees. Shakepay began as a prepaid debit card service fuelled by cryptocurrency.
Instead, the company earns a so-called interchange fee whenever a customer pays with the card. The interchange fee is paid by the merchant who accepted that payment. Although shakepay review it has some of the most competitive rates in the industry, Shakepay is not the only crypto exchange out there. Let’s see how well Shakepay stacks up against its competitors.
There are no commission fees when you trade from your mobile phone or desktop. You can open your Shakepay account and buy bitcoin within minutes. Head to the “Get Started” button located at the top right of the Shakepay homepage. You’ll be asked to come up with a @shaketag (username), and to provide an email address and password. Some of the products and services listed on our website are from partners who compensate us. This may influence which products we compare and the pages they are listed on.