How do we calculate your share of the cake?

By Davy Kestens

Cake is the profitable banking app. In this blog post, we explain what this means and how it works.

Cake is the profitable banking app. We like to throw around our tagline. Great, we can already hear you thinking, but what does “profitable” means? And what exactly do I need to do? And how much will it generate? And why?

In this blog post, we will try to answer all these questions.

How can an app make me money?

Cake is a free independent banking app and yet it brings in cash. Is that possible? Yes, it is. And in several ways.

  • Cake is your budget buddy that gives you a better overview of your income and spending: via handy overviews per month, per category or per store or brand. This gives you more overview and more control over your spending. And that certainly pays off after a while.
  • In addition, you can literally earn real euros on your bank account through automatic cashbacks (so without coupons or loyalty cards) when you buy something from Cake’s partners. These cashbacks are personalized and tailored to your purchase behavior. You will find the overview in your Cake app. 
  • Every month (so 12 times a year) we distribute a portion of our revenue to all active users of the app. This is your share of the pie … euh Cake. And you don’t have to do anything for it except use Cake.
  • And every time you convince someone else to start using Cake too, we’ll give you €1. You can read all about it here.

How much does it bring?

The amount you can and will earn with the app depends a little on us and a little on you. But we know that on average a Cake user earns about €3 per month by using the app.

The more frequently you shop at the Reward partners in the app the more often you will see a cashback appear on your bank account. Sometimes that can be as little as €0.10 but for larger purchases it might as well be €50.

If you convince 3 friends to use Cake this month, you will receive €3 on your account. Convince 20 colleagues, and you’ll get €20. It’s as simple as that.

Your monthly share of the cake varies as well depending on our revenue. For example, in January it was €1 per user while in May it was €3.36. 

How do you calculate my share of the cake?

The revenue we distribute monthly to all active Cake users comes from selling reports and statistics to companies. Companies are keen to better understand where consumers are spending their pennies. And that’s where Cake (and you) can help them. 

We compile the anonymized transaction data of all Cake users (that’s about 25 million transactions!) and create reports and statistics for companies from that data. Since your transaction data is also included in this, among those millions of transactions, we think you should get something for it. Your share of the cake. If you want to read more about this, be sure to read this.

So every month we add up the income from the sale of those reports. From that sum, we take at least half.

That half we divide among all active Cake users of that month. And an active Cake user is someone who:

  • Has at least one unique IBAN bank account linked to the app. Business accounts are unfortunately excluded from our Rewards program for legal reasons.
  • Received at least 1 income in that bank account during that month.
  • And made at least 6 payments or purchases with that bank account that month.

A practical example:
In December 2020, shared revenue from reports and statistics was €15,950. Based on that, on January 4, 2021, we paid out €1 to each of the 15,935 qualified active Cake users of that month.

If you know that on average Belgians pay €4.8 a month to hold a current account, then we are happy that we can at least give your bank account a bit of a boost again.