Wealthsimple Launches Credit Card, Expands Financial Offerings
In a bold move to shake up Canada’s traditional banking system, Wealthsimple has unveiled its first credit card and a new line of credit, alongside a slate of expanded banking features. These include mobile cheque deposits, wire transfers, and free bank drafts—all through its digital chequing account, which launched in 2020.
The Toronto-based fintech firm, best known for its automated investment platform, is clearly pushing deeper into everyday financial services. However, it still insists it has no intentions of becoming a bank. According to Paul Teshima, Wealthsimple’s chief commercial officer, this independence from banking licences allows the company to remain flexible and customer-centric in its innovations.
Products That Offer Flexibility Without the Bank
Wealthsimple’s new credit card offers 2% cashback on all purchases—simple, flat, and easy to understand. Its upcoming line of credit will feature rates starting at 4.45%, competitive when compared to the current prime rate of 4.95%.
Customers can also use their Wealthsimple balances as collateral for these credit lines. The company’s structure—where deposits are held across ten partner banks—means accounts are covered up to $1 million by the Canada Deposit Insurance Corp., offering both safety and peace of mind.
Challenging Canada’s Big Six, One Feature at a Time
Despite Canada’s banking sector being dominated by six major institutions—RBC, TD, BMO, CIBC, Scotiabank, and National Bank—Wealthsimple sees growing room for change. A recent Angus Reid survey, commissioned by the firm, revealed that 25% of Canadians are dissatisfied with their current banks, and 38% have considered switching in the past year.
Wealthsimple believes its technology-first, seamless onboarding process can win over users who once feared the hassle of moving accounts. In fact, nearly a quarter of its three million+ clients already use its combined spending and savings accounts.
Simplicity, Speed and Seamless Experience Drive Demand
The fintech has quietly piloted its credit card over the past year in response to overwhelming customer demand. It expects wide adoption, especially from users already familiar with its high-interest chequing and investing products.
Even as interest rates decline, Wealthsimple reports billions in new deposits since the launch of its chequing service, showing continued interest. Teshima emphasized that convenience, not just returns, drives adoption—users can easily shift funds within the platform to optimize yield.
Disrupting the Status Quo With Smart Additions
According to Ratehub.ca’s Natasha Macmillan, the company’s new offerings “meaningfully challenge the status quo in Canadian banking.” She highlighted features like instant lines of credit based on existing assets—traditionally reserved for private banking clients—as true disruptors.
While its cashback card may not top category-specific options, its simplicity gives it mass appeal. Wealthsimple’s unique touches—like free bank draft deliveries and future cash-to-door services—signal a shift toward personalized, digital-first banking.
Whether this momentum holds beyond urban centres like the GTA remains to be seen. But one thing’s clear: Wealthsimple is no longer just an investment app—it’s evolving into a full financial platform that’s daring Canada’s biggest banks to catch up.
