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Acorns: Revolutionizing Investing for Everyone

Acorns: A Comprehensive Review of the Mobile-first Investment Platform

Investing is often seen as a daunting task, reserved only for the rich and financially astute. However, with the rise of mobile-first investment platforms like Acorns, investing has become more accessible and user-friendly.

In this article, we provide an in-depth review of Acorns, its products, services, history, and leadership to help you better understand this innovative platform.

Acorns Overview and Products

Acorns is a mobile-first investment platform that offers users a seamless and simple way to invest their spare change. The platform rounds up each transaction made through a connected debit or credit card and invests the difference automatically.

Acorns Invest,

Acorns Later,

Acorns Banking,

Acorns Earn, and

Acorns Early are the five products offered by Acorns.

Acorns Invest

Acorns Invest is a mobile-first investment platform that allows users to automate their investment portfolio. Users can select their risk appetite, including sustainability investing, and choose from a range of Exchange Traded Funds (ETFs) to build their investment portfolios.

Acorns Invest also provides access to Bitcoin investments. Subsequent contributions can either be automated or deposited manually.

Once invested, users can track their portfolio’s performance on the app’s homepage. Overall,

Acorns Invest offers a user-friendly and automated approach to investing that would greatly benefit young adults who are looking for a convenient way to invest without worrying about the details.

Acorns Later

Acorns Later provides an easy way to save for retirement by offering traditional, Roth, and SEP Individual Retirement Accounts (IRA). This product offers tax advantages, making it a great way to save for the future.

Once set up, users can start depositing funds into their retirement account regularly or make one-time contributions on their schedule.

Acorns Later is ideal for young adults who want to start saving for retirement without having to navigate complicated retirement accounts.

Acorns Banking

Acorns Banking offers a checking account and debit card that work together to help users save automatically through spare change investments. With Smart Deposit, users funds are automatically deposited into their investment accounts, making saving convenient and straightforward.

Acorns Banking is FDIC-insured and offers fee-free ATM services throughout the US.

Acorns Earn

Acorns Earn is a capital rewards program unique to Acorns. Users can receive cashback rewards from partner brands that get automatically invested in an investment account.

They can also install the Chrome extension, which alerts users when shopping on participating websites and automatically saves for them.

Acorns Early

Acorns Early serves as an investment account for kids. Parents can set up monthly investments and begin teaching their children financial literacy.

Accrued funds can be used for educational purposes, age-related expenses, or invested long-term.

Acorns History and Leadership

Acorns was founded in 2012 by a father and son duo, Walter and Jeff Cruttenden. They believed that everyone should have access to a smart and fully-automated investing platform, which led them to the creation of Acorns.

From its launch, Acorns has experienced steady growth, fueled by a rise in smartphone usage, making investing more accessible. Noah Kerner, the current CEO of Acorns, joined the startup in 2017.

He brought with him leadership and entrepreneurial experience, having worked with several startups throughout his career as an executive, investment advisor, and DJ. Acorns grew rapidly under Kerner’s leadership, and the organization experienced exponential user growth, expanded into Australia, and secured a partnership with Nobel Laureate Dr. Harry Markowitz.

Recently, Acorns made several significant developments that made headlines. The GameStop frenzy of 2021 triggered a spike in user engagement as a growing number of retail investors flocked to investing apps, including Acorns.

Acorns also acquired competitors, making it one of the largest and fastest-growing investing platforms. The company announced a SPAC merger and a $2.2 billion funding round.

Most notably, the organization added Bitcoin investments to its platform.


Acorns has made investing more accessible, convenient, and user-friendly through its innovative mobile-first platform. It offers individuals an easy way to invest their spare change and save regularly for the future.

The company’s history of steady growth and promising future developments position Acorns to continue leading the market for mobile-first investing platforms. Get started with Acorns, and begin your journey to financial wellness today.

Acorns Revenue Generation: A Breakdown of Monetization Strategies

Acorns is a mobile-first investment platform that aims to make investing accessible to everyone. The platform offers several products and services that mainly revolve around spare change investment, checking accounts, retirement accounts, and kid investment accounts.

Acorns has to generate revenue to sustain its business activities, pay employees, and generate profits for stakeholders. In this article, we will analyze the revenue generation strategies employed by Acorns through the use of various metrics.


Acorns offers monthly subscription tiers for its users, catering to individual preferences and requirements. The Personal plan costs $1, the Family plan costs $3, and the Family plan with Investment accounts costs $5 per month.

The number of offerings increases as the subscription price increases, catering to different user needs. These subscription tiers offer different perks and inclusive features such as the retirement plan, investment account accessibility, and access to financial planning advice.

Acorns personalizes the subscription offerings to build customer engagement and loyalty, aiming to create a more recurring revenue stream. Their transparent and straightforward pricing system allows users to understand what they are paying for and what to expect.

The subscription model also provides revenue forecastability, giving Acorns the ability to project their future finances accurately.

Referral Fees

Acorns has partnered with several brands to offer cashback for every purchase, called Found Money. In addition, their Earn product allows users to earn referral rewards by inviting friends and family to join the platform.

Acorns offers a revenue-sharing model with the brand partners, providing a win-win model for all parties involved. Every successful referral resulting in a new user acquisition earns a referral bonus for the user.

Acorns also gains a new user and earns referral revenue sharing from the brand partner. Acorns has several long-term partnership agreements in place that provide potential monetization options for the future.

The company has partnered with several media companies, enabling Acorns to name its portfolio of sustainable funds after articles on CNBC, where Acorns introduced ESG funds. As Acorns adds more partners and expands its referral program, the referral rewards could generate more robust revenue streams for the firm.

Interchange Fees

Acorns Banking partner programs are a source of income for the company. Acorns offers a checking account and debit card in partnership with Visa.

The use of the debit card results in interchange fees, which offer a steady revenue stream for Acorns. Interchange fees are a fee paid by the merchant’s bank to the cardholder’s bank for the acceptance of card-based transactions.

Acorns benefits from these fees for every transaction that gets processed. The interchange rate is determined by several factors, such as the card association, the type of merchant, the type of card transaction, and the reserve rate.

The fee’s structure depends on the agreement between Acorns, Visa, and other stakeholders. Acorns offers incentives for users to use their debit card, promoting its use and, in turn, enhancing the interchange fees revenue.

Management Fees

Acorns charges a monthly management fee based on account size. The fee structure follows competitors like Betterment, Wealthfront, and Robinhood.

For accounts under $1 million, Acorns have a flat fee of 0.25% of assets under management. The above $1 million de-escalates to 0.10% annually.

The asset fee gives users a hands-off investment experience, with Acorns’ team selecting diversified portfolios to maximize returns while reducing risks. The management fee revenue stream is directly tied to Acorns’ AUM and the quality of its investment selection processes.

As the number of users and accounts grows, so does the revenue generated by the management fees.

Interest on Cash

Acorns is driving significant cash balance growth through their interest-bearing bank account product. Acorns incentivizes users to deposit funds into their account instead of a traditional bank account.

The firm can then leverage these funds for investment opportunities and pass the benefit of interest accrual onto their users. Acorns uses behavioral economics techniques by offering a higher interest rate on customers who set up automatic savings and when they spend via their debit card.

The company can attract potential users with this incentive, which will increase their revenue-generating opportunities. Funding, Valuation & Revenue

Acorns have raised $207 million in venture capital investment from notable investors such as Paypal, Jennifer Lopez, Ashton Kutcher, and Nobel Laureate Dr. Harry Markowitz.

In 2020, Acorns announced its SPAC merger with Pioneer Merger Corp., valuing the company at $2.2 billion. As Acorns is a private company, they do not disclose revenue information publicly.

However, estimations suggest that the company has generated around $100 million in revenue in 2020, with an annual revenue of $200-300 million. By continuing to acquire new users and expanding their product offerings, Acorns could continue to see sustained growth in revenue and valuation.


Acorns has taken advantage of several revenue generation strategies to create a sustainable business model that offers users a unique blend of investment opportunities and financial flexibility. By employing subscriptions, referral fees, interchange fees, management fees, and interest on cash, Acorns can generate necessary revenue to sustain its business activities and offer its customers value.

Acorns continues to raise significant funding, with a strong valuation, and estimated annual revenue. The future seems bright for Acorns, and the platform will continue to move forward with its mission to democratize finance for everyone.

In conclusion, Acorns has revolutionized the investment landscape by offering a mobile-first platform that makes investing accessible to everyone. Through its products and services such as

Acorns Invest,

Acorns Later,

Acorns Banking,

Acorns Earn, and

Acorns Early, the platform provides users with a straightforward and automated approach to investing, saving for retirement, and teaching financial literacy.

Acorns generates revenue through subscriptions, referral fees, interchange fees, management fees, and interest on cash. With a strong funding history, notable investors, and a high valuation, Acorns is positioned for continued growth in the financial technology space.

The key takeaway here is that investing and financial wellness are no longer exclusive to the wealthy, thanks to platforms like Acorns. Start your journey to financial stability today with Acorns and join the movement towards democratizing finance for all.

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