How to Develop an App Like Dave? Features, Business Model, Cost, and so on

How to Develop an App Like Dave? Features, Business Model, Cost, and so on

“Want to develop a payday loan app like Dave? Here is a complete guide on how to develop an app like Dave.”

An instant cash app like Dave makes it possible for you to take out a small loan from your next paycheck before you receive it. It has proved particularly useful when you have an urgent need for cash, preventing expensive overdraft fees.

A Motley Fool report says that there are over 11 million users of the Dave app. The growing user base of the Dave app perfectly demonstrates the demand for peer-to-peer money lending apps.

The success of an app like Dave is an inspiration for aspiring entrepreneurs and many of them want to replicate it by developing an app similar to Dave.

If you are also inspired by the success of Dave, then this blog is meant for you. Here in this blog, you will have all the information you need to turn your Dave app development vision into reality.

Let’s start with the basics first.

What is a Dave App?

By far the most common use of the Dave app is to provide users advance cash from their paycheck before they receive it in order to cover unexpected expenses such as car repairs, gas bills, medical expenses, etc.

The most common benefit of the Dave app is that it doesn’t ask for interest against the amount borrowed. Rather than interest, the app makes money from its monthly subscription fee.
The repayment policies of the Dave app also keep users first. The users can set the repayment according to the date of the paycheck. If the salary gets delayed, no worries, Dave will make sure that you have enough funds in your bank account before making any deductions to your bank to prevent you from being charged an overdraft fee.

Also, Dave won’t charge any late fee but put all your next request advance cash on hold until you clear the previous debt.

How does the Payday Loan App Like Dave Work?

Dave makes the process of browning the loan from the application a lot simpler. Users need to install the application on their smartphones. Sign in on the application by providing the bank account details. After the successful verification of the details submitted, the user will be able to borrow the amount decided by the application up to $100 per pay period. While withdrawing the loan amount, the users need to pay the subscription fee which is $1 per month.

After the successful disbursement, the user needs to set the repayment date. The users have the option to choose auto-debit or they can set up for manual payback. The users can also decide how much they would like to tip money to Dave app developers.

Why Should You Consider Developing an Instant Cash App Like Dave?

In the wake of the feature of apps like Dave, it might seem profitable to develop an app similar to Dave. In spite of this, it is worth it to gain practical knowledge about your thoughts since it requires a large amount of investment, time, and resources.

Growing Popularity of the Payday Loan App Like Dave Among Millennials and Gen Z

The youth population is more inclined towards the loan day apps. According to an estimation around ⅓ of the young population has student loans. This is the reason why they see the payday loan app as an easy way to get an instant loan to pay their EMI which falls before their paycheck.

According to a report published by Citizen’s Advice 4 out of 10 young people have ever used payday loan applications.

Progressive Market for Payday loan Applications

According to Allied Market Research, the global market for payday loan apps like Dave was valued at $32.48 billion in 2020. During the financial year 2021-2030, the market is expected to grow at a CAGR of 4.2% resulting in a value of $48.68 billion.

How does an App Like Dave make money?

At the end of the day, the ultimate goal of the development of a money app like Dave is to generate revenue. Dave app makes revenue from multiple sources. The following is a quick overview of the business model of apps like Dave:

1. Membership Fee

The major source of revenue for the Dave app is its membership fee. The app charges a $1 membership fee per month from each of its users.

2. Tips from Users

Tips from users are another major source of revenue for the Dave app. Whenever a user borrows money from the app, the app promotes them to pay a tip. The Dave app never forces its users to pay a tip.

3. Interchange Fee

In addition to being an advanced cash app, Dave also offers its users debit cards issued by Mastercard. Whenever the card is used on any platform, Dave receives an interchange fee.

4. Interest on Cash

The amount left unused in the user’s account landed to the institutions on a certain percentage of interest. This is also a good source of revenue for Dave.

How Can You Make Your Dream of Developing a Money App Like Dave a Reality?

The following steps will help you to make your dream of developing a money lending app like Dave a reality:

Set the Primary Goals for the Development of Advance Money Lending App

Start with the basics. Having the mobile app idea is one thing but making it a reality requires a lot of things to be taken care of. The very first thing you have to do is set the primary goal for your money lending. Having a clear picture of your idea will help you decide on the feature that you can build with your app. The best practice is to offer something unique with your mobile app idea instead of creating another copy of Dave money lending app.

Register Your Business

It is mandatory in almost all countries for financial mobile applications to register themselves to the government. There are some guidelines suggested by financial bodies, your app must need to comply with them to ensure its legitimacy.

Choose the Reliable App Development Company

Putting great plans into action requires a great team. The same thing goes with the Dave app development. You need to hire a reliable app development company with previous experience in developing finance-related mobile applications. Also, put the client reviews on the top priority while choosing among all the options of app development companies available to you.

Design and Develop the App

This is the step that requires utmost attention. Make sure all your design and development goals are successfully interpreted by the development company. Keep yourself in the loop with the development process to make sure all your development goals are successfully interpreted into reality.

Testing and Launch

This is the last step in your journey of advanced money lending app development like Dave. Upon the development, test your app on multiple parameters to confirm that it strongly adheres to the needs of users and delivers a flawless experience to them. Once the quality of the mobile app is confirmed, the next step is to launch it.

What will be the Cost of Developing an App like Dave?

Estimating the cost for any kind of mobile app development is not feasible. In the case of the Dave-like app development cost, it depends on the complexity, features, tech stack, team structure, and so on. The essential factor that determines the cost is the location of the app development company you opt to work with.

The effective way to get an estimation of the payday loan app like Dave development is consulting with an app development company. Share your development goals with them and they will provide you with the estimated cost of development that you need to bear.

Final Take

The success of the instant cash app like Dave is not a hidden secret after reading this blog. The demand for payday loan applications is constantly raising and creating a new revenue stream for fintech startups.

If you also want to set your footsteps in the fintech sector, then an app like Dave is the best option for you. All you have to do is walk through the ITfirms list of top application development companies and pick the one that aligns with your development goals.

Frequently Asked Questions

What are the alternatives to the Dave app?

  • Brigit
  • Earnin
  • MoneyLion
  • Branch
  • Even
  • Empower

Where Can I Find a Reliable Mobile App Development Company?

The selection of the mobile app development company is going to put a direct impact on the success of your application. You can consider checking out ITfirm’s list of the top app development companies to choose the best one for your project.