How Is Money Club Different From Traditional Pooling Up Mechanisms

The Money Club is an amazing way to pool up money with your friends over a mobile app. Here are 5 points that explain how it is different from traditional pooling up mechanisms.

Legality

  • Money Club: Money moves through bank accounts and all the transactions are tracked on the app. 
  • Key-point: Money Club is legal while traditional pool up is not. 
  • Traditional Mechanisms: Transactions happen in cash only, which is mostly unaccounted money, so it is illegal.
Physical Presence
  • Money Club: Physical meetings are not required and everyone can bid on their mobile while sitting in their comfort zone. 
  • Key-point: Money Club believes that time is of essence and physical proximity is not required when people in the group trust each other 
  • Traditional Mechanisms: Requires people to be physically present.
Centralization
  • Money Club: Money Club app takes care of all the payment reminders and also informs everyone about the paid/unpaid transactions. 
  • Key-point: Money Club has automated the group owners function and passed on the returns to the group members so that everyone gains. 
  • Traditional Mechanisms: The group owner takes up to 5% of the pooled amount as commission, effectively sucking up all the returns made. Others don’t make much returns in this case. 
Transparency
  • Money Club: Everyone in the club knows who has paid and who hasn’t. This ensures complete transparency about everyone’s behaviour of making payments 
  • Key-point: Transparent process results in higher trust and greater satisfaction. 
  • Traditional Mechanisms: Only the group owner knows who paid and an individual’s behaviour with payments. Others have no way of knowing if they have a dicey member in their group. 
Risk
  • Money Club: Money is not physically kept with one single person. Every member transfers money directly to the bid winner after the round. 
  • Key-Point: In Money Club, the risk is significantly reduced when there is no concentration of funds in one hand. 
  • Traditional Mechanisms: There is a high risk of the group owner running away with the money.