KOHO and Wealthsimple are two of Canada’s most popular financial technology companies.
The KOHO Prepaid Mastercard and Wealthsimple Cash Card are both prepaid cards in Canada. This comparison covers their features, pros, cons, fees, limits, how they work, and more.
KOHO vs. Wealthsimple
I provide an overview of their service offerings to understand better how these companies compare.
What is KOHO?
KOHO is a fintech company with a goal to change how traditional banking works. It offers a prepaid card (KOHO Mastercard) that works alongside its other financial products, i.e.
- KOHO Earn Interest
- KOHO Credit Building
- Other prepaid card plans (Extra, Essential, and Everything)
- KOHO Cover
KOHO has partnerships with both Mastercard and Peoples Trust. It is also backed by large investment firms, including Drive Capital and Portag3.
What is Wealthsimple?
Wealthsimple is the top online wealth management firm in Canada, with more than $30 billion in assets under management.
Since its founding in 2014, the company has expanded its operations from robo-advising to include:
- Self-direct stock trading (Wealthsimple Trade)
- Crypto trading (Wealthsimple Crypto)
- Tax return filing (Wealthsimple Tax)
- Savings accounts (Wealthsimple Save)
- Prepaid Mastercard
Wealthsimple is backed by top investment firms, including Power Financial Group and Allianz X. Learn more about it in this review.
KOHO Mastercard vs. Wealthsimple Cash: Prepaid Cards
This article will focus on the prepaid cards offered by both KOHO and Wealthsimple, plus their corresponding features.
KOHO Easy Mastercard
KOHO’s prepaid card was previously licensed by Visa; however, it is now offered under a Mastercard license.
This card is available in several formats: KOHO Essential ($20 bonus), KOHO Extra, and KOHO Everything. The standard KOHO Card waives monthly fees when you set up a recurring direct deposit.
Users earn 1% cash back on grocery and transportation purchases and up to 5% higher rates at select partners. They also earn a 5% interest rate on their deposits.
When you sign up for the card, you can choose from four colour designs. You also get a virtual card you can easily add to Google Pay, Apple Pay, etc.
For even more features, you can upgrade to the paid plans and earn higher cash back rates while paying no-FX fees abroad.
KOHO Prepaid Mastercard
$20 welcome bonus after first purchase (use CASHBACK promo code during sign-up)
$0 monthly fee*
Earn up to 5% unlimited cash back
Get 5% savings interest on your balance
Unlimited Interac e-Transfers and debit transactions
Free budgeting app and access to credit building
Wealthsimple Cash Card
The Wealthsimple Cash Prepaid Mastercard is linked to your Wealthsimple Cash account and app.
Like KOHO, you get both a physical and virtual card and can easily add them to your preferred wallets.
You earn cash back on purchases made using this card, and it has no annual fee. Wealthsimple Cash also pays a high interest on your balance of up to 5%.
Wealthsimple Cash Card
Prepaid Mastercard
1% cash back on purchases
Free money transfer app
Access to virtual and physical card
Verdict: The KOHO Prepaid Mastercard offers a higher cash back rate on all purchases.
KOHO Mastercard vs Wealthsimple Cash: Savings Account
Using the KOHO Card and app, you earn 5% interest on your balance. In addition, your KOHO account also works as a hybrid bank account with chequing features like free Interac e-Transfer, bill payments, and more.
Wealthsimple Cash also pays interest on your balance, with rates as high as 5% if you have a sizeable balance. This account also offers free eTransfers, bill payments, auto investments and more.
Verdict: Wealthsimple = KOHO
KOHO Mastercard vs. Wealthsimple Cash: Cash Back Rewards
With the regular KOHO Mastercard, you earn up to 5% cash back on purchases.
The Wealthsimple Cash Card pays 1% cash back on purchases.
Verdict: KOHO wins in this category.
KOHO vs. Wealthsimple Prepaid Cards: Credit Building
If you want to rebuild or improve your credit score, KOHO offers a credit-building service for $5 to $10 monthly. You can easily opt in for this service using the app and see improvements within six months.
The Wealthsimple Cash Card does not impact your credit score.
Verdict: If you need to improve your credit score, KOHO is the better choice.
KOHO vs Wealthsimple: Limits
The following limits apply to a regular KOHO account:
- Daily maximum load: $20,000
- Monthly maximum load: $40,000
- Maximum card balance: $40,000
- Daily POS limit: $4,000
- Daily ATM limit: $600
- Maximum amount/transaction: $4,000
- ATM limit per withdrawal: $300
- Maximum direct deposit (per transaction): $20,000
- Daily maximum e-Transfer (outbound): $3,000
- Daily maximum e-Transfer (inbound): $5,000
- KOHO-KOHO transfer limit (per transaction): $1,500
- Daily KOHO-KOHO transfer (inbound): $2,500
- Daily KOHO-KOHO transfer (outbound): $2,000
Visit KOHO to check other limits. Also, note that Premium accounts get higher limits.
Limits for the Wealthsimple Cash Card include:
- Daily maximum spending limit: $5,000
- Maximum ATM withdrawal (per transaction): $500
- Maximum daily ATM withdrawal: $1,000
KOHO Card vs. Wealthsimple Cash Card: Fees
While Wealthsimple Cash is free, these fees may apply and be charged by third parties:
- Currency conversion fee: typically 2.50%
- ATM withdrawal fee: typically around $3
A standard KOHO account is free*, and you don’t pay NSF, e-transfer, or account fees.
For currency conversions, a lower 1.50% fee applies (typically 2.50%), and $2-$3 is charged by out-of-network ATMs.
KOHO Extra users pay a $9 monthly fee or $84 annually.
KOHO vs. Wealthsimple: Security
Wondering whether the KOHO and Wealthsimple prepaid cards are safe? Yes, they are.
KOHO keeps your deposits with Peoples Trust, a federally regulated bank, and your funds are eligible for the Canada Deposit Insurance Corporation (CDIC) insurance.
Your Wealthsimple Cash and Save account deposits are held at a CDIC member bank and are protected up to specific limits.
Both financial institutions use encryption and bank-level security to protect your information.
Verdict: KOHO = Wealthsimple.
KOHO App vs. Wealthsimple Cash App: Money Transfer
Using the Wealthsimple Cash app, you can send and receive unlimited Interac e-Transfers for free. You can also transfer money to other Wealthsimple users instantly using their Dollar $ign handle or phone number.
KOHO also supports eTransfers and KOHO to KOHO transfers.
Verdict: KOHO = Wealthsimple.
KOHO vs. Wealthsimple Card: Customer Support
You can reach Wealthsimple’s customer support by chat, phone, and email.
You can reach KOHO’s customer support by chat in-app and by email.
Pros and Cons of the KOHO Prepaid Card
Pros:
- Cash back rewards on some purchases
- Free account
- Access to credit building
- High interest savings account
- Free budgeting app
Cons:
- Not a credit card and does not impact your credit score unless you pay for “credit building”
Pros and Cons of the Wealthsimple Cash Prepaid Card
Pros:
- Free prepaid card
- Instant money transfers in Canada
- Cash back rewards on all purchases
- Access to other Wealthsimple products, including investing and crypto
- High interest rates on savings
Cons
- Not a credit card and does not affect your credit score
KOHO vs Wealthsimple Prepaid Cards: Conclusion
KOHO vs. Wealthsimple: Which should you choose?
While the KOHO Prepaid Mastercard ($20 bonus) offers more benefits and rewards, you could benefit from carrying both cards in your wallet.
KOHO vs. Wealthsimple FAQs
You can’t use the Wealthsimple Cash Card to make payments in about 51 countries, including Cuba, Albania, Ethiopia, Kenya, Iraq, Ukraine, Libya, and Belarus.
You can’t use the KOHO Card in about 52 countries, including Albania, Belarus, Congo, Cuba, Ethiopia, Ghana, Iraq, Romania, etc.
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