Fintech revenue model: App Monetization Strategies & More

Digitalization has changed the game of the finance industry, If you are looking for a fintech revenue model for your fintech app, read the entire blog. 

Most of the fintech companies make money via advertising, subscription, and third parties. In their earlier stages, businesses are most focused on establishing themselves rather than making money. 

This is why many start-ups fail when they expect revenue generation in the earlier stage of business. Since most of them don’t know how the fintech business model works and many don’t believe in following the one. But in fact, they do work it depends on the company to company.

According to Deloitte research, the fintech fast-growing space is projected to reach $174 Bn in 2023 and is predicted to reach $188 Bn by 2024. The table shows the fintech industry revenue between 2017 and 2024.

This data shows a clear indication of fintech investment and consumer adoption is on the rise. In this blog, we will discuss the ways that fintech companies make money. And explore the business models that are used to generate revenue. 

Types of Fintech apps

When you start digital wallet development, it is essential to know the types of fintech apps. So you can easily pitch your idea to the fintech app development company.

Here are the types of fintech apps, including:

E-wallet appsEwallet apps enable users to transfer money between accounts, pay bills and make purchases.
Budgeting and saving appsWith these apps, users can easily manage their finances by tracking their spending, creating budgets, and setting financial goals.
Investment appsThese apps allow users to invest in stocks, bonds, and other assets using their smartphones
Personal finance management appsWith finance management apps users can manage their finances, including net worth, debt, and cash flow.
Peer-to-peer lending platformsThese apps connect borrowers with investors, enabling individuals to lend and borrow money without going through traditional financial institutions.
Cryptocurrency appsThey allow users to buy, sell, and trade cryptocurrencies such as Bitcoin Ethereum, and Litecoin.
Robo advisory appsThese apps use algorithms to provide users with automated investment advice based on their financial goals and risk tolerance.
Insurance appsInsurance apps made hectic insurance policies easy to understand.
Remittance appsThese apps enable users to send money to family and friends abroad often at lower fees than traditional money transfer services.
Point of sale financing appsWhen it comes to instant financing options for consumers when they make purchases, often with zero or low-interest rates.

Now you know the types of fintech, you can easily start your digital wallet development. But before you invest in the fintech app development learn about the fintech revenue model so that your apps can start generating revenue in less time.

Fintech app monetization strategy 

It is the common question stuck while planning to develop fintech apps – how do finance apps make money? 

Before starting fintech application development, learn about the fintech app monetization strategies there are hundreds of ways that fintech companies make money. Here are several ways a fintech app monetizes such as:

  1. Interchange fees

Most of the fintech payments business models include interchange fees when a user swipes a credit or debit card the merchant is charged a percentage of the transaction in fees. Moreover, this number is 3% but depends on merchant category, purchase size, and others. They are more expensive than the other payment methods. 

Usually, merchants tolerate this fee from companies like Visa and Mastercard because the transaction instantly settles, which is an instant relief. This type of fintech business model works to attract customers with the cards and features and generate more interchange revenue.

Since interchange is one of the leading generators in the fintech segment, the financial service provider makes most of the revenue from interchange fees.

  1. Subscription fees

This is the most common and successful strategy among all the mobile app monetization strategies. Most tech companies use this model to charge monthly or yearly fees to their customers which becomes the successful revenue driver.

In addition, some of the apps offer a ‘freemium’ model where some of the features are free and most of the features you have to unlock.

Every business model of fintech companies has a subscription fees model, with this fintech is more focused on growing. 

  1. Payment processing and funds transfer fees

Whenever there is a fund transfer from the merchant or user to the user there is always a fee involved. Most of the fintech revenue models revolve around these fees. Additionally, there are many types of payment and fund transfer fees such as:

  • Credit card processing fees

With this model, payment processing companies mainly generate revenue from it. With this several fintech companies making this category are becoming a market leaders as they are adding credit card processing easier for merchants.

  • Transfer fees

When it comes to transferring money to the bank account directly from the app, that when fintech companies charge a maximum fee of  $25.

  1. Trading fees

Most of the Fintech business models for trading in Cryptocurrency and stock trading platforms charge a fee which is the main source of revenue generation.

Moreover, the Cryptocurrency trading platform the app charges trading fees ranging from $0.99-$2.99 for the transaction under $200. If the transaction is over $200 the fee will be 1.49% for bank account payments. 

  1. API connection fees

Most businesses integrate payment gateways for secure payment connection, and with every purchase, the fintech company charges a little sum of fee.

Moreover, with API integration non-financial companies can offer financial services and make money by charging customers for using APIs.

  1. Advisory fees/ Robo-advisory fees

Robo-advisor is a type of app monetization platform that allows users to trade in the stock market paying incredibly low fees. With this users can save investment advisor fees as these platforms use algorithms and machines to manage portfolios.

Moreover, Robo-advisory fess is less as they manage and optimize the assets and are a great way to generate revenue. More and more fintech companies are offering Robo-advisory to increase their revenue generation.

  1. Third parties/referral fees

This is the most common way to monetize your app, refer to a commission paid by a business to a third party for referring a customer to the business. This is a common practice in many industries, such as real estate, finance, and insurance.

The purpose of third-party referral fees is to incentivize the third party to promote the business’s services to potential customers. However, it is important to note that the payment of referral fees may also create a conflict of interest for the third party, as they may be incentivized to refer clients to the business that pays the highest referral fee, rather than the one that is best suited for the client’s needs.

  1. Advertisement 

One of the traditional ways of monetizing apps with ads simply putting ads up and selling your customers. 

However, Ad placement is crucial to ensure that the ads are visible and not intrusive to the user experience. It’s important to strike a balance between generating revenue and not disrupting the user experience.

Continuously evaluate the performance of the ads and make necessary improvements to ensure that they are generating revenue and not negatively impacting the user experience.

Moreover, implementing ads within a fintech app may not be suitable for all types of apps, especially those that require high levels of user trust and security. Therefore, it’s important to carefully consider the impact of ads on the user experience.  And ensure that they do not compromise the integrity of the app or the user’s financial information.

  1. Interest

Like many traditional financial institutions used to make money, fintech similarly earns money. They are not the main revenue generator but this is the simplest way for fintech android app monetization.

One monetization strategy for fintech apps is to generate revenue through interest on deposits includes.

  • Obtain regulatory approval

 Depending on the jurisdiction, fintech companies may need to obtain regulatory approval to accept deposits and offer interest.

  • Determine the target audience

Knowing the target audience will help to determine the type of interest rates and deposit products that would be most attractive.

  • Choose the deposit products

 Fintech companies can offer various deposit products, such as savings accounts or certificates of deposit, with different interest rates and terms.

  1. Big Data 

Big data can be a valuable source of the Fintech revenue model. Here are some ways fintech companies can monetize big data:

  • Selling data to third parties

 Fintech companies can sell their data to third-party companies, such as marketing firms or financial institutions, who can use the data to improve their services and products.

  • Offering data analytics services

Fintech companies can offer data analytics services to businesses, providing insights and analysis on their customers or industry trends.

  • Developing new products and services

 Fintech companies can use big data to develop new products and services that meet the evolving needs of their customers.

  • Personalized marketing

 Fintech companies can use big data to create personalized marketing campaigns for their customers, improving engagement and retention rates.


There are many ways to generate revenue with this fintech app monetization strategies fintech companies can monetize their applications, services, and data. App monetization strategies, such as subscription fees and in-app purchases, can generate revenue while providing value to users. Fintech companies can also explore additional revenue streams, such as partnering with other businesses or offering data analytics services.

Whether you’re looking to start a fintech application development partnering with experienced professionals can help ensure success in this dynamic and rapidly evolving industry.