Varo

Varo is a consumer-facing digital bank in the United States that operates under its own banking charter and offers FDIC-insured deposit accounts covered up to $250,000. Its product set centers on a mobile bank account marketed without overdraft fees, in-network ATM fees or minimum balance fees, paired with a tiered high-yield savings account advertised at up to 3.75% APY on balances up to $5,000 and 1.00% APY on amounts above that.

Beyond deposits, Varo offers short-term and revolving credit alongside spending features. Cash Advance provides up to $250 immediately, rising to as much as $700 over time once direct deposit is established, priced with flat fees ranging from $1.60 to $100 rather than interest; the average advance is $170. A separate Varo Line of Credit extends loans of $600 to $2,000, with an average loan of $825. The Varo Believe Visa credit card is positioned as a credit-building product, and the app includes free credit score tracking. Other features include early access to direct-deposited paychecks up to two days ahead of payday, location-based cashback offers on categories such as gas, groceries and dining, and fee-free cash deposits at more than 7,500 CVS locations. Account opening is conducted in the app and advertised as taking about two minutes.

Business model

Varo distributes banking and credit products directly to consumers through a mobile app, holding deposits under its own bank charter rather than relying on a partner bank.

Disclosed pricing indicates revenue from flat fees on cash advances (ranging from $1.60 to $100 depending on loan size) and from lending products such as the Varo Line of Credit and the Believe Visa credit card, while core account features are marketed as free of overdraft, in-network ATM and minimum balance fees.

Traction

The website cites app store ratings of 4.9 across roughly 216,000 App Store reviews and 4.7 across roughly 230,000 Google Play reviews, and states that millions of people use Varo. It also reports that customers see an average credit score increase of more than 40 points after three months of on-time payments with the Believe Visa credit card.