Money Club Guide

How Is Money Club Different From Traditional Pooling Up Mechanisms

By July 21, 2017 No Comments

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.

The Money Club