Mode App Review
Released in 2020, the Mode App allows you to buy, sell, store, and send Bitcoin (BTC) in the UK – without high fees (0.99%).
You can also earn cashback (paid in BTC) when you use the Mode App to pay for your shopping at a growing number of retailers.
On top of this: Mode App is one of the few places that’s fully registered with the FCA as a cryptoasset firm, and is also listed on the London Stock Exchange.
Mode App is a UK-based mobile app that lets you trade, send, and store Bitcoin (BTC) quickly, easily, and cheaply.
But how does Mode App perform in the real world? Does it live up to expectations?
In this Mode App review, I’ll take a closer look at what the platform offers. I’ll discuss its features, pros, cons, limits, and fees so you can see how it stacks up to the competition.
Advantages & Disadvantages
- UK-based company that’s fully registered with the FCA as a cryptoasset firm.
- Low fees (0.99%) on all Bitcoin (BTC) purchases.
- GBP deposits are processed fast using Open Banking or FPS.
- Can earn Bitcoin (BTC) rewards for shopping online using ModePay.
- User-friendly mobile app (iOS and Android).
- High minimum buy and sell requirements for BTC (£50) trades.
- Many complaints about accounts getting frozen without warning.
- New company with limited track record (app launched in 2020).
- Charges fees for Bitcoin (BTC) withdrawals.
What is Mode App?
Mode is an app built by Fibermode Ltd., a UK-based fintech company that makes it easy for people to buy, sell, and use Bitcoin (BTC). The company was founded in 2019 by Jonathan Rowland and Alex Ryvkin, but its initial purpose was to offer Bitcoin-backed loans.
When Mode went public on the London Stock Exchange (LSE) in 2020 it shifted its focus toward creating a Bitcoin-backed payments solution called Mode App. Mode App is designed to give everyone a fast, simple, and secure way to buy and spend Bitcoin (BTC) using the power of Open Banking technology.
Mode’s mission is to “accelerate the world’s transition to a truly digital financial system”. The company wants to create a “next-generation ecosystem that transforms the way in which consumers and businesses transact” by making crypto transactions a regular part of our day-to-day lives.
Mode App is relatively new to the cryptosphere, so it doesn’t have a long safety record for us to judge.
But the company that created Mode App, Fibermode Ltd., is listed on Companies House under company number 11085144. Fibermode Ltd. is even fully registered with the Financial Conduct Authority (FCA) as a cryptoasset firm under reference number 928786.
Mode App also uses a number of safety features to secure customer accounts. This includes a partnership with BitGo, one of the world’s largest crypto custodians, to provide custodial services for all Bitcoin (BTC) held in Mode wallets.
Your cryptoassets on the platform are primarily held in cold storage and they’re covered by $100 million in insurance from Lloyds of London. British Pounds (GFP) held in Mode wallets are held in custody by the FCA-authorised firm Modulr, too.
While none of this is a guarantee of financial safety, it all suggests that Mode App is committed to playing by the rules and to working hard to protect client assets.
Mode is a fully registered cryptoasset firm in the UK, so the company looks good on paper. But what do actual users have to say about the app?
Currently, Mode App has a 3.7* rating on Trustpilot (120+ reviews). This is a good rating by cryptoasset company standards and nearly 70% of reviewers give the company 5*.
Most of the 5* reviewers mention how easy and intuitive it is to use Mode. Others comment that it offers reasonable fees, quick bank transfers, and a simple way to earn cash back on purchases made using ModePay.
Approximately 25% of reviewers give Mode App a 1* rating. The majority of these unhappy reviewers mention issues with having their accounts frozen with little warning.
This seems to be a recurring theme with Mode App, but the company addressed the issue in a blog post. According to Mode, the company generally freezes accounts when there’s suspicion of money laundering.
Since Mode is an FCA-registered cryptoasset firm and a fully licensed Electronic Money Institution (EMI) in the UK, it’s legally required to take steps to prevent money laundering. The easiest way to do that, the firm claims, is to freeze accounts while they investigate the issue.
Mode admits that “not all frozen accounts are fraudulent” but that they “believe it is better to be safe than sorry”. When the company freezes accounts, it normally asks for additional identity verification information and proof of funds (e.g., a recent pay stub or bank statement) to show that no money laundering is at play.
No one likes having their account frozen, so I definitely understand the frustrations of these unhappy Mode App users.
It’s a good sign that Mode took the time to address these complaints and to explain its obligations as an FCA-registered cryptoasset firm.
Buy & Bitcoin
Mode App is primarily a place to buy and sell Bitcoin (BTC).
Once you create and fund your account, you can buy Bitcoin (BTC) in Mode App by doing the following:
- Navigate to your Mode App dashboard.
- Click ‘BTC’.
- Press the ‘Buy’ button next to your account balance.
- Type in the amount of Bitcoin (BTC) you want to buy.
- Review the exchange rate and any applicable fees.
- Press ‘Confirm & Buy’ to complete your order.
All Bitcoin (BTC) trades on Mode App are processed as market orders. Your Bitcoin (BTC) should be credited to your account within seconds.
You can either hold your Bitcoin (BTC) in your Mode account or send it to a different wallet.
Mode lets you withdraw your funds to any external Bitcoin (BTC) wallet. You just need to pay a small fee to cover network costs (more on those in a bit).
But if you want to send funds to another Mode App user, you can do so for free. If your friends have Mode, too, you can add them to your contacts list and send them as much BTC as you’d like without paying network fees.
ModePay is new feature that’s in its early stages. The idea behind this is that it lets you shop online and make purchases at participating retailers using the funds in your Mode wallet or your linked bank account.
Since ModePay integrates directly with your existing Mode App account, you don’t need to enter your payment details or shipping information to make a purchase. To use ModePay to shop online, you simply need to do the following:
- Add the items you want to buy to your cart and head to checkout.
- Select ModePay as your payment method.
- Choose your payment option (Mode App balance or linked UK bank account).
- Verify your payment using Touch or Face ID.
Your payment is then automatically dedicated from your Mode App balance or your UK bank account.
Every purchase you make using ModePay earns you Bitcoin (BTC) rewards.
Mode doesn’t offer a fixed cashback rate on its Bitcoin (BTC) rewards. Rather, you’ll see how much you can earn in rewards before you make a payment using ModePay (advertised rates have been as high as 25%). Your rewards are instantly credited to your account where you can trade or HODL them as you please.
Mode App is only available in the United Kingdom. The company hasn’t announced any plans to expand overseas in the future.
The only cryptocurrency that you can buy, sell, and send with Mode App is Bitcoin (BTC).
The only way to fund your Mode App account is through a UK bank transfer. It supports UK bank transfers through Open Banking or using Faster Payments (FPS).
You can link your UK bank account to your Mode account directly in the app and start transferring funds immediately via Open Banking. Open Banking is an easy to use platform that seamlessly and instantly connects your bank account to a third-party platform, like Mode.
The funds you transfer via Open Banking should be available within minutes.
You can use Mode App’s Open Banking Integration if you have an account with any of Mode’s supported banks. This list includes most major banks, such as Barclays, HSBC, Santander, Royal Bank of Scotland, TSB Bank, and Bank of Scotland.
If you don’t have an account at a bank on Mode’s list, you can make a traditional bank transfer via Faster Payments (FPS).
Mode App Fees
Mode App’s fee schedule is simple and straightforward. There are only two fees to use the app:
- 0.99% commission on all Bitcoin (BTC) trades
- 0.0005 BTC fee for withdrawing Bitcoin (BTC) to an external wallet
There are no fees to deposit or withdraw British Pounds (GBP). You also don’t have to pay to deposit Bitcoin (BTC) to your account or to send BTC to other Mode App users.
Each Mode App account has the same minimum and maximum transaction limits. These limits are:
- Buying & Selling Bitcoin (BTC): £50 minimum (per transaction)
- Depositing GBP: £25,000 maximum (per month)
- Depositing Bitcoin (BTC): £25,000 maximum (per month)
- Withdrawing BTC or GBP: £25,000 maximum total (per month)
However, there is no minimum account balance requirement with Mode. There’s also no upper limit on the amount of Bitcoin (BTC) that you can buy or sell in the app.
Mode App Alternatives
Mode App’s closest alternative is Bottlepay.
Bottlepay is another UK-based fintech app that makes it easy to buy, send, and use Bitcoin (BTC). The company offers similar features to Mode App, including low-cost Bitcoin (BTC) purchases (1% fee), fast GBP deposits, free BTC transfers to other app users, and the option to send BTC via the Lightning Network.
Plus, Bottlepay has a social payments feature where you can tip your favourite content creators via Twitter, Reddit, Github, and more.
Overall, Bottlepay is very similar to Mode App. But its features are slightly more advanced than what Mode currently has to offer.
If you’re looking for a way to quickly buy and sell more than just Bitcoin (BTC) though, consider CoinJar.
CoinJar is another FCA-registered cryptoasset firm that lets you trade more than 40 cryptocurrencies on its user-friendly website and mobile app. With CoinJar, you can buy crypto quickly using a UK bank account or a credit/debit card. The company’s trading fees are also competitive (1%).
The Bottom Line
Mode App is a user-friendly way to buy and send Bitcoin (BTC). Besides its ModePay feature, the app doesn’t offer anything that’s particularly innovative.
But, to be fair, it’s still in its early stages of development.
Anyhow, here are a few things that I liked:
- Minimal Fees. The only fees you have to pay with Mode App are a 0.99% commission on trades and a 0.0005 BTC fee on withdrawals to an external wallet.
- Full FCA Registration. Mode App is one of the few crypto companies that’s fully registered with the FCA as a cryptoasset firm.
- Fast Fiat Deposits & Withdrawals. Deposits and withdrawals to Mode App use either Open Banking or Faster Payments (FPS), so you can move money quickly.
There aren’t many big drawbacks to using Mode App, but there aren’t many huge advantages to using it either.
As it stands, Mode App is a simple way to buy Bitcoin (BTC) using UK bank transfers without paying an exorbitant amount of fees. But we won’t know the app’s true potential until the future.
Thanks for Reading!
Thanks for checking out this review of Mode App!
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