Unitplus Plans to Expand its Day Money Product for Business Customers

Published 8 months ago

Berlin-based start-up Unitplus has developed an innovative investment product that allows for funds in ETF portfolios to be spent at any time using a bank card. However, it is the company’s new day money product that has been particularly well-received. The fintech firm now plans to extend its offering to business customers.

The Rise in Popularity of Day Money Product

Following the increase in interest rates last year, the day money product, which had almost been forgotten in the low-interest era, regained popularity. In response, Unitplus launched the so-called “Day Money 2.0”. Unlike traditional day money, this involves investing in an interest product based on a money market ETF from DWS, yielding a daily interest rate tied to the Euro-Short-Term Rate of the European Central Bank. Currently, this rate stands at 3.89 percent. The company plans to soon extend this offer to corporate customers.

Key Features of the “Cashplus” Product

“Cashplus” calculates interest on every working day and has no term or deposit restrictions. Another distinguishing feature is the accounting of the invested funds. Since the investment is formally in a security, Unitplus’ partner bank records the invested money as special assets, fully protected in the event of insolvency. The product also includes a debit card, allowing payments directly from the depot, similar to the ETF product.

Response from the Market

The product has been well-received, with several other fintechs following suit. Unitplus originally launched in 2021 with a savings product that aimed to establish a new form of payment. The fintech offered a unique proposition: pay for everyday expenses directly from an ETF. Users can invest their money in various ETF portfolios through a Unitplus depot and make direct payments using a debit card. Unitplus collaborates with Aion Bank for this service.

Growing Demand from Businesses

According to founder Fabian Mohr, the user base is currently growing by a four-figure number every month. In addition, the amount of capital managed by Unitplus is increasing by a seven-figure sum every week, and Mohr attributes this growth primarily to the day money product.

“We have been receiving ongoing inquiries from companies,” Mohr told Finance Forward, who were interested in handling corporate funds via Unitplus. The company is now responding to this demand by launching the product under the name “CashPlus KMU” for corporate customers.

It is likely to be an interesting market for Unitplus. So far, there are few players offering business customers deposit interest or day money products, and if they do, they are usually limited to a certain amount. Unitplus is initially opening the waiting list for the corporate customer product, which Mohr says is expected to launch in the first quarter of 2024.