Looking at the Plaid pricing, it costs $1.50 to initially connect an account and $0.30 per month after that for each account. Assuming the average user connects 4 accounts and does not pay for a subscription, the cost is $6 initially + $1.20 per month, per user.
How does Emma survive this cost?
If the percentage of users who pay for a subscription drops below some value, will Emma be forced to become a paid app?
When Emma started out, before having mass volume and investment, how did you grow the app? Was there a time when you had to pay the higher price and take a loss until you had enough users to change to Plaid’s mass volume plan?
That is interesting and a lot less than I expected. So $0.15 to $0.30 is normal for connecting a new account. Is it also $0.30 per month to continue receiving transaction data for an account, or is the monthly price less? (before mass volume is reached)
Edit: I’m finding that even a small change in the monthly cost per item can make or break the net income. With 8000 users, the difference between $0.30 and $0.03 in cost could mean the difference between -$36,000 and $5000 net income. I see why negotiating the price is important, and why you’re working to replace Plaid.
I spoke with Plaid’s growth team recently and they offered $1.25 per initial institution connection + $0.25 per month per institution, and this was their Scale Plan which requires $500 minimum monthly payments. At $1000 minimum, their initial connection cost is still $1.15. It is hard to get into this space as a single developer unfortunately. I will have an app out there but I don’t think people will pay for it lol