Recently, I made the comparison between Mogo and the Square Cash App. For those of you that missed it, the two applications have quite a few similarities. In fact, in the last article I explained why I believe Mogo is the Square Cash App of Canada.
With news released by Mogo this morning, that comparison has become even easier to make, outlining why investors should be very excited about Mogo’s future.
In a press release issued this morning, Mogo announced that it will soon be adding another service to its repertoire, bridging the only major gap between the company’s app in Canada and the overwhelmingly popular Square Cash App.
Soon, Mogo will be offering peer to peer payment services. Through the Mogo App, Canadians will soon be able to send payments to friends and family members with the click of a button on their cell phones.
While Square has made this possible through the cash app in the United States for some time now, there are no similar, simple, peer to peer solutions in Canada.
So, essentially, as the Square Cash App made peer to peer payments popular in the United States, Mogo seems poised to do the same in Canada.
The Comparison Goes Far Deeper
The news released by Mogo this morning only makes the comparison easier to make, the icing on the cake so to speak… but there’s an entire cake to speak of here.
One of the factors that made the Square Cash App such a successful company is timing. The application was one of the first in the United States to help simplify finances for consumers at a time when traditional banking services reigned supreme.
Today, around 57% of Americans use digital wallets, with Square Cash App being the king of the sector in the region. Mogo is following along the same lines.
While the majority of Americans use digital wallets today, the same can’t be said for Canada. In fact, when compared to other developed nations, Canada seems to be the slowest to catch on to the digital finances trend.
One of the big reasons for that is that there haven’t been options that make finances simple through digital applications. That is, until Mogo.
The fact of the matter is that as the Square Cash App was one of the pioneers in the United States fintech market, Mogo is a pioneer in the Canadian fintech space. Moreover, even before the company announced that it would be launching a peer to peer payments service, Mogo has been seeing strong uptake in the Canadian market, recently announcing that it has more than one million active members.
So, What Are These Members Into Outside Of Payment Services?
Like the Square Cash App, the Mogo App offers a diversified product offering. Prior to the announcement that it would be launching a peer to peer payments service, Mogo already had an impressive line up of services, including:
- MogoSpend. MogoSpend is a digital spending account that’s attached to a Platinum Visa credit card. The account allows Mogo members to easily track and manage their spending, making it easier to stick to a budget. Moreover, every time a member swipes their MogoSpend card, they’re not only improving their own financial health, they’re improving the health of the environment. Mogo offsets one pound of carbon on behalf of its members for every dollar they spend on the MogoSpend account, helping consumers achieve a net zero CO2 lifestyle.
- MogoCrypto. MogoCrypto gives Canadians access to the cryptocurrency market by offering them a way to buy and sell Bitcoin.
- MogoProtect. MogoProtect was the first application based way for Canadians to protect their financial information from fraudsters, one feature that you won’t find on the Square Cash App.
- Credit Score. Mogo is also the first company to give Canadians free access to credit score monitoring services. Yet another feature that you won’t find on the Square Cash App.
- Loans. Mogo also offers a long line of small value loans, or loans with values of up to $35,000. Surprisingly, the company’s loan book has outperformed any other lending service that I’ve looked into, with less than 6% of borrowers requiring COVID-19 assistance of some kind and only 1% of borrowers still accepting such assistance.
- MogoWealth. MogoWealth offers a ton of information surrounding a healthy financial lifestyle and your ability to build wealth.
- MogoMortgage. Finally, members can access low-cost mortgage services through the Mogo App. These services are designed to simplify the home purchasing or refinancing process.
As you can see, just like Square was the first company to offer a wide range of application based financial services in the United States, Mogo is the first to offer a wide range of similar services in Canada. Now, with the company adding peer to peer payments to its service roster, this comparison becomes even more powerful.
Why Is This Important?
Because this outlines a huge opportunity! Think about it. Getting involved in Mogo now is like getting involved in Square at pre-IPO pricing. While the company is traded publicly, it’s traded at a heavy discount as investors don’t have any other Canadian company to compare them to from a valuation perspective. As such, the stock trades at pennies on the dollar when compared to American, British, and Australian counterparts.
Nonetheless, the opportunity is clear and these discounts won’t last forever. The fact of the matter is that the peer to peer payments service is the final service that ties the knot between the Cash App and the Mogo App. With Canadian uptake of fintech services beginning to take hold and the fact that Mogo is the pioneer in the space, as Cash App was, and is, in the United States, the potential for dramatic long run gains out of Mogo ahead is hard to ignore.
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