What is the one thing young professionals spend the majority of their time using? You guessed it, their smartphone. What is something young professionals today might have a problem doing? You may have guessed it, saving money. With this knowledge, an app called Lawnmower was launched in 2014. The app tracks its users credit card and bank transactions and rounds each one up to the next dollar. The spare change is invested into buying Bitcoin. If you buy a book for $4.70, Lawnmower will round your purchase up to $5 and invest the extra 30 cents into buying Bitcoin. The goal of the app is that the spare change will add up over time and become a way for today’s generation to save money.
More and more apps are being designed to help young professionals accumulate their wealth. Another app, Digit, automatically sends small amounts of money from a checking account to a savings account. Acorns, similar to Lawnmower, automatically invests spare change into exchange traded funds. Mint is another app that helps people understand their spending and increase their savings. A trend among all these apps is that they charge little or no fees for their services. Lawnmower does not currently charge anything, but users may still pay a fee for using Bitcoin. Lawnmower plans to offer premium services to its users to generate revenue.
The founders of Lawnmower, Alex Sunnarborg, Pieter Gorsira, and Patrick Archambeau, hope that their app will be easier to use than Bitcoin, which can be overwhelming and complex for new users. The fact that Lawnmower’s success is completely dependent on the ongoing use of Bitcoin does not concern the three founders. As an entirely digital currency, Bitcoin has had its fair share of ups and downs. While there were days when the price point of Bitcoin hit over $1,000, there were also days in 2014 where it stood at a little over $200. Although not everyone is convinced that Bitcoin is the future of currency, Sunnarborg does not think Bitcoin’s success or failure with impact his users too much. This is because his user’s will only be jeopardizing spare change, not huge amounts of money. Sunnarborg makes a fair point, but one thing to keep in mind is that losing small amounts of spare change everyday can add up to a huge amount.
Source referenced: Fortune