Wealthsimple Cash: A Complete Guide

Banking Jul 17, 2024 5 min read
Wealthsimple Cash: A Complete Guide

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What Is Wealthsimple Cash App?

The Wealthsimple Cash app is a peer-to-peer (P2P) payment platform that allows you to send and receive money between friends, family, and others in your network.

Released in March 2021, the app is known for its lack of fees, lightning-fast transfers, and accompanying prepaid Mastercard, called the Cash Card.

How Does Wealthsimple Cash Work?

Wealthsimple Cash works like Venmo, Cash App and other popular money transfer apps available down south, but not to Canadians.

If you have experience with those brands, you’ll have little trouble navigating your way around it.

You can download the Wealthsimple Cash app from the App Store or Google Play.

If you’re already a Wealthsimple customer, you can access the app using your existing username and password; otherwise, you’ll have to set up an account.

When creating your account, you’ll have to choose a unique username or handle, which Wealthsimple refers to as the dollar $ign.

This marker will enable people in your contact list to identify you, similar to how they would on social media sites.

You’ll also need to provide your banking details so you can transfer funds to and from your bank account.

You can send and receive money from anyone on your contact list, provided they also use the Cash app.

Sending & Receiving Payments

Before you send a payment through the Cash app, ensure your account contains sufficient funds.

There’s an option to withdraw and send funds directly from your bank account, but you’re restricted to sending only $250, so using the Cash account is preferable.

Your Cash app must also contain your contact list, which you can conveniently import from your phone.

To send a payment to a friend or family member, follow these steps:

  • Open the app and tap the “$” button
  • Select the person you wish to send money to by typing their name, handle, or phone number.
  • Choose either “Bank” (to send money from your bank account) or “Wallet” (to send money from your Cash app)
  • Input the amount you wish to send and confirm the transaction. You can type a personalized message, as well.
  • Swipe up to execute the transaction.

The money is deposited into the recipient’s Cash account, usually within seconds.

Unlike a payment conducted using Interac e-Transfer, there’s no requirement for the recipient to answer a security question to claim the funds.

Sending and receiving money through the Cash app is entirely free – there are no transaction fees or monthly maintenance fees.

There’s also no minimum initial deposit required, nor a minimum balance to maintain in your account to keep it in good standing.

Like most money transfer limits, The Cash App restricts how much you can send.

Below are the limits:

Frequency Sending
Per day $1,000 CAD
Per week $2,000 CAD
Per month (30 days) $5,000 CAD

Fun Fact

You can send money using the Wealthsimple Cash App to people who don’t have the app themselves. The recipient will receive a notification by email of the pending transaction with instructions to download the app.

Wealthsimple Cash Card

The Wealthsimple Cash Card is a prepaid debit card offered by Wealthsimple in partnership with Mastercard.

It serves as a complementary feature of the Cash app, allowing you to spend money you have available in your Wealthsimple Cash account. 

Cash Card payments are processed through the Mastercard Network, so you’re free to use it at any location that accepts Mastercard.

Here are the spending limits associated with the Cash Card:

Per Transaction Per Day
Maximum Spending limit N/A $5,000 CAD
ATM Withdrawals $500 CAD $1,000 CAD

Some of the card’s other features and perks include:

  • No annual or foreign exchange transaction fees (though you incur Mastercard’s currency conversion fee for purchases made in foreign currencies and an ATM withdrawal fee of $3.00)
  • A rewards program that earns you 5% cashback on purchases made Friday through Sunday at restaurants, bars, and convenience stores.
  • Tap-to-pay function for purchases up to $250
  • A virtual version of the card for use through the Cash app
  • Fully compatible with the digital wallets Apple Pay, Google Pay, and Samsung Pay

Fun Fact

You can deposit your Cash Cards’ rewards points directly in your Trade or Crypto accounts on Wealthsimple’s platform, which will allow you to redeem your points for stocks and cryptocurrencies.

Withdrawing Cash To Other Financial Institution Accounts

Withdrawing funds from your Cash account is as quick and easy as depositing them.

Follow these steps to transfer money to your bank account:

  • Sign into your account and select “Wallet balance”
  • Click on “Withdraw” and enter the amount you wish to transfer
  • Select your bank account
  • Click on “Submit withdrawal”

The funds will arrive in your bank account within 1 – 2 business days.

Large transfers may take a few extra days to process.

Wasn’t Wealthsimple Cash a Savings Account?

In its previous incarnation, Wealthsimple Cash was a hybrid savings and chequing account.

It offered a high-interest rate on balances and charged zero fees.

The product was initially launched in January 2020 with these features but transitioned to a P2P money transfer service in early 2021. 

Wealthsimple still offers clients a savings account but under a separate product called Wealthsimple Save.

Frequently Asked Questions

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Is Wealthsimple Cash like Cash App?

Yes. The Wealthsimple Cash App is exactly like Cash App (developed by Square) or Venmo. The Wealthsimple Cash app is a reinvention of the original product – it now functions as a P2P money transfer app.

Does Wealthsimple Cash have a debit card?

The Wealthsimple Cash app offers users the opportunity to sign up for a complimentary product called the Cash Card, a prepaid Mastercard. Unlike the app, which facilitates money transfers, the Cash Card enables users to make everyday purchases, using money available in users’ Cash account. The prepaid card offers various perks, such as cashback rewards programs, zero foreign exchange fees, and integration with popular digital wallets like Google Pay.

Contributors

Mark Gregorski
AUTHOR

Mark Gregorski

Mark is passionate about educating people on how the financial markets work and providing tips to help them better manage their money. Mark holds a bachelor’s degree in finance from the Northern Alberta Institute of Technology and has more than a decade of experience as an accountant.

Outside of writing and finance, he enjoys playing poker, going to the gym, composing music, and learning about digital marketing.

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