Toronto-based fintech KOHO and its prepaid Mastercard spending account is making some big changes, kicking into effect on April 20, 2024. But it looks like the Essential plan is already live on the KOHO website, as of April 15, 2024.
The free KOHO Easy plan is going to be axed and only three subscription plans will remain. “We are moving towards acquiring more profitable customers and providing them with the best paid service available in the market,” said a KOHO spokesperson to iPhone in Canada on Monday.
KOHO Essential will be the new entry-level plan, replacing KOHO Easy.
Aside from plan changes, benefits will also be revamped. The 30% discount previously offered on Credit Building services for KOHO Easy users will be discontinued.
KOHO Essential will now offer a 0% base cashback rate, a change from the former 0.25%. Essential users will still earn 1% cash back on groceries, dining, and transportation, and can get up to 50% cash back through KOHO’s merchant network.
Essential costs $4 per month or $48 annually, but you can get the plan for free by meeting one of two conditions: depositing $500 monthly into their KOHO account or setting up a Direct Deposit.
According to KOHO, these changes will only apply to new users signing up after April 20. Existing KOHO users will be grandfathered into their current plans.
“We understand these changes are not easy to navigate. However, we look forward to a new phase in KOHO’s journey in becoming Canada’s leading challenger bank and the go-to financial app for our users,” said KOHO in a statement.
These further changes come after KOHO lowered its category cashback on its Extra plan down to 1.5% (from 2%) and its base cashback on the Extra plan down to 0.25% (from 0.5%) on April 2.
KOHO supports mobile wallets such as Apple Pay, allowing customers to spend money using a virtual card and physical card that gets mailed to you.
