Koho’s mobile finance service for millennials launched in Canada

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While many peer-to-peer payment and personal finance services are geared towards the United States, a new one has emerged to reverse this trend. Koho is launching to the general public – starting in all provinces of Canada except Quebec – as a mobile hub to help manage people’s finances. The startup has partnered with Visa to give it a boost from the start.

A mix of Mint.com, Venmo and Digit, Koho seeks to provide free banking services to millennials, while providing consumers with easy-to-digest and transparent access to their financial data so they know exactly where their money is going. Koho seems to consolidate things, so you no longer need multiple apps to accomplish these different tasks.

Once the account is activated, users will receive a prepaid Visa card issued by Peoples Trust Company, which can be used anywhere Visa is accepted. The idea is to load the card with only the funds needed to get by until the next paycheck. Money is expected to be set aside to save, which Koho said he would do for you automatically. All transactions made with the Visa card will be recorded in Koho, which provides the necessary tracking to encourage financial discipline.

Using the Koho service is free for customers, but the company charges merchants when the Visa card is used. Through its partnership with the credit card provider, Koho receives a percentage of the interchange fees. In addition, revenues are generated by banking partners through foreign exchange and off-grid charges. However, the company says none of these fees are passed on to customers.

Koho’s launch comes after more than two years of development and beta testing. “The response during the private beta has been incredible,” said Daniel Eberhard, chief executive of the company, in a statement. “Over 10,000 Canadians have signed up; we have processed over $ 1.3 million. In virtually every measure, Koho is used in a fundamentally different way from traditional offerings.

Currently, Samsung Pay, Apple Pay, and Android Pay are not supported, but Koho said the company plans to include them eventually, starting with Apple Pay at the end of Q2.

The company has raised $ 1.95 million (C $ 2.6 million) in venture capital from the founders of Hootsuite and Shopify, as well as Power Corporation of Canada, Gil Penchina and Stanley Park Ventures.

Koho is available on iPhone today, and an Android version will launch next quarter.

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