How Splitwise makes money

Splitwise is a free application that allows consumers to share expenses with their friends. If a group needs to share the cost of a particular bill, Splitwise will ensure that anyone who pays gets the correct amount and the minimum number of transactions. After the split, users can send email notifications when bills are due, and the app allows users to send debits to others in the group.

The app is designed to track informal debt, including rent, meal and travel expenses, bills, etc. Splitwise users enter comments in the app about who they owe, who owes them, and why. There is no need to keep receipts for this service, because users can add any fees to the app when they incur them.

Although Splitwise does not conduct cash transactions, it is strictly a digital debit application, and users can pay through online payment services such as Paypal and Venmo. The service charges fees for certain debit and credit card transactions.

Splitwise Pro is a paid upgrade to an existing Splitwise account (approximately $3 per month), which can provide variable monthly or annual rates based on the time the account was established, country/region, local taxes and regulations, etc. Professional users can see reduced advertising, receipt scanning and sub-services, currency exchange, fee searches, early access to new features, and more.

Key points

  • Splitwise is a free application that allows users to quickly and easily calculate and repay informal debts such as bills, shared meals and travel.
  • The company mainly earns revenue through the potential use of advertising and its paid subscription service Splitwise Pro, which provides additional features.
  • Splitwise is one of many fintech applications designed to help people manage money. Splitwise is inconvenient to transfer funds directly through its app, and users may have to pay third-party transfer fees.
  • In April 2021, Splitwise received US$20 million in funding from private equity firm Insight Partners.

Splitwise’s industry

Splitwise is used through mobile applications and web platforms that use financial technology software. This booming industry provides users with technology to help them enhance or automate financial transactions.

As a splitting app, it runs in the same field as competitors such as Tab, Settle Up, and Split. They all provide similar services and provide easy ways to split bills and pay debts within a group. Splitwise, when combined with Venmo or Paypal, allows users to give up paper money to support digital transactions.

The global financial technology industry has far-reaching influence. According to the latest research, such as Ernst & Young’s 2019 Financial Technology Adoption Index, 64% of consumers have adopted some form of financial technology in their lives.

Fundraising and Finance

Unable to obtain public data about the company’s user base. Nevertheless, since its establishment in 2011, Splitwise has received more than $30 million in investor funding in five rounds, which shows that the outside world is very interested in supporting the company’s growth. According to Crunchbase, in the final round of financing in April 2021, the company raised a total of US$20 million.

Splitwise may receive a portion of transaction fees paid by users to facilitate payment transfers via PayPal or debit and credit cards. Nevertheless, since Splitwise does not have public financial reports, it is difficult to assess the importance of this source of income to the company, or even if it can be considered the main source of income. Nevertheless, since the transaction does not occur within the application itself, Splitwise can provide users with services for free-even if the payment itself will incur a separate fee to pay off the debt owed.

The cloud-based Splitwise application can be used on iPhones, Android devices, and computers. Since Splitwise is a free user-oriented application, the company does not generate revenue from its user base. Splitwise makes money mainly through occasional advertising and its paid subscription upgrade service called Splitwise Pro.

Although company documents indicate that users of Splitwise’s free service may see advertisements, in reality, advertisements seem to appear rarely, if at all. Since the company does not provide publicly available financial data, it is difficult to assess whether Splitwise has generated substantial revenue from advertising, and if so, what these numbers might be.

Plas by Splitwise is an independent free application provided by Splitwise that simplifies the process of splitting restaurant bills. This app allows diners to enter each dish ordered and share the cost of shared items, such as appetizers. The Plates app calculates taxes and tips, and everyone in the group receives an email notification about the amount owed. This service can also be linked with the Splitwise application.

Split history

The Providence, Rhode Island-based company was founded in 2011 by Jonathan Bittner, Marshall Weir, and Ryan Laughlin, who is responsible for web design and development. According to his resume, Bittner, a former Harvard astrophysics graduate student, is interested in creating an app to help quantify equity.

The company aims to provide “fair mediation advice”. Although the background story is not on the website, users can search the company’s 2011 blog post archives to understand how they operate and create. As a free application, Splitwise does not charge users to download or use its basic services, and provides a service called Splitwise Pro, which costs approximately US$3 per month.

In 2019, the company updated and redesigned the entire platform, including the homepage, logo, and mobile application.

Company documents indicate that users may see advertisements while using Splitwise, which provides a source of income for the company.

Recent development

In April 2021, Splitwise Inc announced that it had raised US$20 million in a Series A financing led by Insight Partners, a global venture capital and private equity firm. According to a press release approved by the company, Splitwise will “use the funds to develop its team, accelerate global customer growth, and establish new partnerships with fintech and financial services platforms.”

Since its inception, a total of US$90 billion of transactions have been allocated on the Splitwise platform. In April 2021, Splitwise launched a major update of its Android application.

Bottom line

Splitwise’s new round of financing shows that consumers continue to demand fintech applications. Splitwise did not provide exact metrics on its active users, but the company seems to be on track to grow and develop, and an app that helps friends and family members track debts is likely to continue to be in demand.

How do you use split?

You can use Splitwise through the mobile app on your phone. It acts as a digital IOU and can easily calculate the amount owed by everyone. You can also make payments using third-party apps such as Venmo through the Splitwise app.

What is the cost of splitting?

Splitwise is free, but you can sign up for Splitwise Pro for $3 per month.

Is Splitwise connected to a bank account?

You cannot link Splitwise to a bank account because it does not support cash transactions. Splitwise only tracks expenditures and IOU debts.

What is a split calculator?

Splitwise offers a range of fairness calculators on its website, from calculators for rent sharing to travel calculators.

Is it safe to split?

Splitwise does not process any cash transactions and does not link to personal bank details, making it more secure than other applications.

What is an alternative to Splitwise?

SettleUp, Tab and Square Cash are all similar to Splitwise.


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