How to Build a Cash Advances Mobile App like MoneyLion: A Comprehensive Guide

We use mobile apps for everything. Using apps to get short-term credits and small loans is now more popular than ever, and the number of people using such apps is also on the rise.

One of the biggest examples is MoneyLion. The app enables users to get short-term loans. And users are utilizing the app well.

Naturally, many businesses want to build such apps with the help of a mobile app development company. And if you are a business looking to capitalize on the chance, you may have many questions about it.

How to build the app?

How much does app development cost?

How to hire reliable mobile app development services?

These are some of the questions. As a mobile app development company, we get all these questions with almost every project.

That’s why we decided to publish this blog to help you all develop cash advance apps like MoneyLion and others.

Instant cash advance apps—often referred to as ‘cash advance apps’—enable users to access their earnings before payday, depositing the money into a designated checking account.

Most apps like MoneyLion offer their services for free, while a few may impose a modest fee. Many of these apps do not burden users with interest charges. Cash advance apps are designed with user convenience in mind.

Any fees that need to be paid with the app are repaid at the end, making them a practical alternative to traditional payday loan programs and credit cards. The apps are accessible on various platforms and users can access it on any device.

To utilize a cash advance application, it is imperative that you initially download said application onto your smartphone device and subsequently establish an account. After this step, you will be prompted to furnish personal particulars, including but not limited to your full name, residential address, and financial earnings. The application will employ this particularized information to ascertain your eligibility for a loan as well as the precise amount that you are eligible to borrow.

Upon receiving the necessary authorization, the loan will be promptly transferred into your designated bank account within a span of a few hours or the subsequent business day. It is important to note that the conditions about repayment and interest rates are subject to variation, contingent upon the specific application and loan amount.

MoneyLion is a leading instant cash advance app that offers free access to instant cash payments, with a maximum limit of $250. It stands as one of the top choices in the cash advance app category.

It is useful in dynamic work scenarios when you require funds before your next paycheck arrives. However, the users must meet certain eligibility criteria to qualify for the $250 cash payout.

The borrowed money app amount is to be repaid after your subsequent deposit, aligning with the due date. This repayment model is one of the ways through which the app generates revenue, ensuring continued service.

Related Article: Mobile App Development Guide for 2024: How to Build a Successful App?

Let’s understand the top 10 cash advance apps like MoneyLion in the market now.

1. Brigit

Like MoneyLion, Brigit stands out as an established app. It is designed to empower users to manage their finances when in need. Offering quick cash access of up to $250 without the hassle of credit checks or interest charges, it goes beyond simple solutions.

Brigit extends its benefits to credit building, expert financial insights, and more. This makes it a great companion for anyone with quick financial needs.

2. Affirm

Affirm breaks the mold of traditional finance programs. It introduces a remarkable and unique approach to acquiring desired items without depleting your funds.

Affirm users can make purchases without the looming specter of late fees or hidden costs.

Another element that makes the app super valuable is that it is easy to use, making it ideal for newcomers.

3. FlexWage

FlexWage streamlines paycheck management for both employers and employees. With FlexWage, users can avoid the headaches of paying and getting checks.

Employees can access their earnings on-demand with the app, and it offers the convenience of reloadable paychecks, too.

4. Chime

Another prominent player in the fintech realm, Chime, takes center stage by delivering free mobile banking services through its website and mobile apps. Making banking easier for individuals, it also provides a $200 fee-free overdraft option with the added flexibility of early payment.

5. Klover

Like MoneyLion, Klover also provides its users with an option to get an advance of up to $250. The app also allows you to get points by completing simple tasks, such as answering a few questions.

Klover can also be used to improve the users’ credit score.

6. Rufilo

Rufilo is a registered NBFC (Non-Banking Financial Company) under the RGI, serving the Indian market.

It offers Instant Credit Lines, allowing you to secure a $2500 cash deposit to your bank account. Unlike its counterparts, Rufilo has a very stringent process to check the credits of its users.

The stringent may make it hard for some customers to use the app.

7. Dave

Dave specializes in providing rapid cash advances for urgent and future needs.

With a user base exceeding 5 million, Dave's mobile app has been a catalyst in improving financial prospects through its innovative financial services.

8. CASHe

CASHe stands as a personal loan app, extending instant cash loans ranging from $100 to $10,000 without the need for collateral or a guarantor.

Using a unique credit rating algorithm, it ensures rapid loan disbursal within minutes of approval. The repayment window spans 15 days to 6 months, with competitive interest rates.

CASHe is a great help for those in need of quick funds for emergencies, medical expenses, travel, or unforeseen financial challenges.

9. AfterPay

AfterPay follows the footsteps of MoneyLion and lets users buy now and pay later. After the initial payment, the remaining four installments are spaced evenly, and the purchase is dispatched quickly.

This app boasts off many features, shielding you from rising interest rates and providing seamless installment payments.

10. Pocketly

Pocketly app has been Tailored to meet the requirements of the youth of India. It offers a secure and expedited personal loan experience with a two-click signup, minimal KYC requirements, and rewards for punctual repayments.

The app’s interface gives access to its cash advance service. This is loved by the youth, who prefer quick and efficient app transactions.

When developing apps like MoneyLion, it's crucial to go beyond just the instant loan feature to capture your target audience's attention. Incorporate a range of innovative features to outshine the competition.

Here's a list of features you can ask your mobile app company to integrate into your payday advance mobile app:

1. Credit monitoring

Credit monitoring is a crucial component of any payday loan app. This feature empowers users to access their credit reports, scores, history, and more through a single mobile app.

It also serves as a security measure, notifying users of any suspicious activities, such as new account creation, through push alerts and emails.

2. Financial tracking

Many users turn to cash advance apps due to challenges in managing their finances . You can assist them in tracking expenses and offer insights to help reduce excess spending and increase savings.

You can introduce this as a premium feature providing expense tracking and personalized financial advice.

This will help you generate revenue for your business.

3. Financial education

Improving financial literacy is pivotal as many users struggle due to limited financial knowledge.

You can offer premium users access to financial education, covering topics like budgeting, money management, investments, debt management, etc.

This empowers users to make informed financial decisions and minimize futile expenses. And it will improve your brand image in the market.

4. Online banking services

You can streamline the user experience and access their banking details with your app by offering bank account management features. Make it easier for them to check their account balance, make transfers, generate online statements, etc.

This brings their banking activities within a single, efficient app. When your app becomes the go-to option for users for payments and finance management, it helps your business grow.

5. Personal loans

In addition to instant loans, enable users to obtain personal loans through the mobile app. Cover various personal loan purposes, such as paying off debt, home decor, medical bills, and more.

Work with reliable fintech mobile app development companies to create algorithms for interest rates, repayment periods, and application process.

6. Cashback rewards

Attract users by giving cashback rewards, an enticing feature.

Reward actively engaged users with cashback and other incentives based on their transactions. Everyone likes a little extra money in their wallet, making this feature appealing.

When they get rewards for payments, they are more likely to use your app.

7. Credit building

You must understand that not everyone has a good credit score, which can hinder them in various situations, including loan applications.

Add a feature to help users enhance their credit scores.

You can also offer personalized help to improve credit score and secure loans directly from your app.

8. Personal finance tools

For an inclusive offering, integrate third-party tools into your mobile app to provide advanced features.

This minimizes resource management concerns and ensures accurate, interactive services with minimal errors.

By choosing a top-tier finance mobile app development company, you can reduce the risk of app failure.

As you move forward on your fintech app development venture, you must explore the strategies to enhance your cash advance app.

Here are the most popular ways to generate income via your app.

1. Transaction Fees

You can opt for a small fee per transaction or charge more for smaller transactions, allowing users to make significant payments for free. Debit a commission from their loan amount and transfer the remainder to their account.

2. Subscription Plans

Giving fixed-cost subscription plans with monthly charges is another option. Create different subscription tiers with varying features to cater to diverse user needs.

3. Freemium Model

The Freemium model is a popular choice for monetization. You can provide essential features for free and charge for premium functionalities. This lets you penetrate the market quickly and then start selling premium services.

4. Premium Support

Most fintech app users often seek professional assistance related to finance, investments, asset management, etc. You can offer advisory services from finance experts for a fee.

5. Sponsored Content

This is another popular model. You can work with financial institutions to list their services or content on your platform in exchange for a fee.

This can be a revenue source but may require industry experience for optimal results.

Deciding the precise cost of developing a cash advance app like MoneyLion involves several factors that influence the overall cost. A deep understanding of these factors is essential for making well-informed budgetary decisions.

Here is what we do at AddWeb Solution As a mobile app development company when developing an app like MoneyLion to determine its cost.

The Platform.

The selection of the platform constitutes a pivotal factor in learning the development cost of an app like MoneyLion. While the difference in cost between developing iOS and Android apps is marginal, starting with Android is often useful due to its extensive user base.

UI/UX Design.

The quality of the app's user interface (UI) and user experience (UX) design is another crucial factor. The smoother and more visually appealing the app is, the higher the user retention rate. The budget allocation for cash advance apps like MoneyLion may change based on your app’s UX goals.

Development Team Size.

A dedicated team skilled in building apps like MoneyLion is another factor influencing the overall cost. Hire a mobile app development company rather than freelancers offering mobile app development services to ensure the necessary professional expertise and experience.

App Maintenance.

App maintenance expenses are an inherent cost element in any app development project. It ensures that the app performs well and stays up to date as per changing technologies. Check with your mobile app development company about the terms before hiring them.

App Development Company’s Location.

The location of the selected loan app development company also affects the overall cost a lot. Hourly developer rates in regions such as Asia and Africa are typically more efficient than those in the UK and the US, while the expertise remains the same.

Features and Functionalities

The development cost is also greatly influenced by the app's features and functionalities. A budgeting app with a simplified feature list will be less costly, and the cost may increase with more features. However, the investment is justified to deliver an app enriched with diverse abilities.

Quick and Convenient

A cash advance app is fast and easy to use. You can apply for a loan with just a few clicks and get the money in your bank account within hours. This is great for emergencies when you need cash right away.

No Credit Check

Cash advance apps differ from traditional loans because they do not necessitate a credit check. Consequently, individuals with a low credit score can still qualify for a loan. This characteristic renders cash advance apps a feasible alternative for individuals who conventional lenders have rejected based on their credit history.

Easy to Use

Cash advance applications are specifically created to offer a user-friendly and easily navigable experience. Most of these applications feature a straightforward interface that enables users to apply for a loan with minimal effort. This makes it a convenient choice for individuals who may not be technologically inclined or lack the availability to engage in a lengthy loan application procedure.

No Collateral Required

Cash advance applications provide unsecured loans, eliminating the need for borrowers to offer any form of collateral as security. This is advantageous for individuals who lack assets to use as collateral or prefer not to jeopardize their assets in the event of loan default.

High Interest Rates

One major disadvantage of utilizing a cash advance application is the exorbitant interest rates. These applications impose a substantial APR (annual percentage rate) on the loans, which can vary from 200% to 600%. Consequently, if you borrow $100, you could potentially be required to repay $200 or even more.

Short Repayment Terms

Apps that provide cash advances offer loans that have to be paid back on the borrower's next payday, making it difficult for individuals who are already facing financial difficulties. If the loan is not repaid on time, additional charges and interest may be imposed, significantly increasing the overall cost of the loan.

Risk of Debt Cycle

Using a cash advance app carries the risk of falling into a debt cycle due to the combination of high interest rates and short repayment terms. If you are unable to repay the loan within the specified timeframe, you may find yourself needing to take out another loan to cover the previous one, resulting in an endless cycle of debt.

Limited Loan Amounts

Cash advance applications provide borrowers with small loan sums, typically between $100 and $1000. However, these amounts may not be sufficient to address significant expenses or unexpected situations, forcing individuals to explore alternative financing options.

When it comes to selecting the right app development partner, AddWeb Solution stands out as a compelling choice.

Here's a breakdown of the key factors that make us your ideal partner:

1. Team of Qualifie Professionals

With diverse skill sets and a commitment to staying ahead of industry trends, our team is well-equipped to create mobile apps like MoneyLion.

2. Customized Service Plans

We understand that every app is unique, and so are its Custom Web App Development Services requirements. Hence, we offer customized development plans tailored to the specific needs of your project, leaving no room for unexpected glitches or issues that could compromise user experience.

3. Advanced Development Tech Stack

AddWeb Solution uses advanced development tools to create the best apps for our clients. This is to ensure that your app meets the highest standards for functionality, security, and performance.

4. Timely Customer Service

We understand the value of keeping you in the loop and solving your concerns promptly. That’s we have a responsive customer service team to keep you informed about the project’s progress and solve your issues quickly.

5. Affordable Services

We believe that budget constraints should not stand in the way of achieving your app development goals. Our services are designed to adapt to any app development budget. We believe that top app development must be accessible to all.

6. Top Mobile App Development Quality

When you partner with AddWeb Solution, you are choosing top-tier mobile app development quality. We hold ourselves to the highest standards, ensuring that your app not only meets but exceeds your expectations. Our internal processes monitor the mobile app development services we offer for quality.

Developing a cash advance app like MoneyLion requires great care and planning. Because such apps can impact users' lives, businesses that want to hire mobile app development services must work with expert app development agencies like AddWeb Solution.

With years of experience and expertise to rely on, we have made a name for our services. You can check our portfolio to learn more about our services. In addition, we can also work with established and startup businesses like their primary mobile app development company.

If you are a business looking to develop such an app, speak to our client service team to build your strategy.

Contact us.