London-based fintech firm Mode has launched its Bitcoin banking mobile iOS app. Available to users globally, except in the United States of America, a Mode account can be opened in less than 60 seconds, with Know Your Customer (KYC) requirements completed in less than two minutes through AI-enabled identity verification technology.
The startup, which is advised and backed by Twitter co-founder Biz Stone, allows GBP deposits via bank transfer from £50. Mode charges a fee of 0.99% at the time of purchasing and selling Bitcoin. The platform is partnered with leading digital asset custodian BitGo.
Mode also plans to launch a Bitcoin interest-generating product that would allow users to earn passive income on their Bitcoin holdings without having to touch their assets. The product is expected to be released in 2020.
Having joined Mode as an advisor of the project, Biz Stone became an investor in Mode and a non-executive director of R8, Mode’s parent company. “Although there are multiple existing ways to access the Bitcoin market right now, few appeal to the everyday person, who wants to buy and hold some Bitcoin. Most of the current apps all have one problem at their core. Mode has removed needlessly complex processes from their app, building a beautiful and responsive UI and UX rivalling that of the major challenger banks—while also launching a completely new and innovative Bitcoin product”, said Biz Stone.
Ariane Murphy, Head of Communications and Marketing at Mode, said: “Our new app not only enables us to capture the huge growth in the Bitcoin marketplace, but also tackles many of the issues people have with the current platforms and storage services available, which our research shows are significant. The Mode app addresses transaction restrictions issues, low speed/high cost, lack of security and most importantly, tackles the poor user experience typically associated with Bitcoin apps. Until the beginning of this year, we pilot-tested our app with some 1,000 early subscribers and their feedback has been very positive. This, coupled with the strong growth in the
marketplace, means we are confident that now is the right time to launch to the wider public.”
Mode has recently conducted a survey with people who already own digital assets which found that 41% of respondents described the process of transacting Bitcoin through existing solutions as average or poor, with just 13% describing the process as excellent. Some 37% say the level of security offered by the platforms they have used is again average or poor, with 41% claiming security is good and 21% excellent. In terms of overall user experience, just 56% describe other digital asset services as good or excellent, with 32% saying it is average and 11% describing their experience as poor.
Mode aims to address the shortcomings found in the survey and offer a solid experience with digital asset services, including transactions and security. R8 Group is Mode’s parent company and includes entrepreneur Jonathan Rowland, and Twitter co-founder Biz Stone. R8 raised $5m in April 2019.
The survey also found that 42% of people who currently own Bitcoin plan to buy more, 51% of people surveyed indicated they may buy Bitcoin soon, and just a small fraction of respondents, around 7%, said they have no intention of currently buying the digital asset.
