Luca Barberis

How does transaction frequency evolve per cohort?

№ 102 · Transactions per user by cohort

01

Definition

MetricTransactions per active user per month, tracked by signup cohort and months since signup

Unittransactions per active user per month

Triangular grid where rows are signup cohorts and columns are months. Watch average transactions per active user growing over time. Build by counting transactions per user per cohort per month. Example: Oct 25 cohort 4.2 txns/mo at M5; Mar 26 cohort 5.1 at M0 (new cohort more engaged).

02

Benchmarks

Bottom 30%MedianTop 30%
fewer than 2 transactions per active user per month by month 12, the secondary-account pattern4 to 8 transactions per active user per month by month 1215 or more card and account transactions per active user per month by month 12, the level at which a fintech account behaves as a primary account

Consumer fintech and neobank accounts, per active user rather than per registered user, global with a US, UK and LatAm weighting, 2024 to 2026. Excludes internal transfers and balance checks. · The single biggest definitional trap is the denominator. Nubank reports against a monthly activity rate of 83%, so per-active figures there are close to per-customer figures; a wallet reporting against registered users will look three to five times worse for identical behaviour. State which denominator the chart uses on the chart itself. The top30 anchor is taken from Chime's disclosed threshold for a primary account relationship, 15 or more card purchases in a calendar month, which is a product definition rather than a survey median, so treat it as a bar to clear rather than a percentile. PayPal's own transaction intensity is computed here from filed figures (18.6bn transactions across nine months of 2025 against 438m active accounts, roughly 4.7 per active account per month) rather than reported directly as a per-user rate.

Category split omitted: No two independent Tier 1 or Tier 2 sources publish transactions per active user split by fintech sub-model on a comparable definition; the available figures are single-company disclosures on differing denominators.

03

When it looks bad

Every cohort line starts at a similar level and then flattens within two or three months instead of climbing, so the whole chart is a set of parallel horizontal lines sitting low, meaning no cohort ever graduates from occasional use to habitual use.

The month-1 cohort does 3.1 transactions per active user, month-6 does 3.3, month-18 does 3.4. Eighteen months of product work has bought 0.3 transactions per user per month.

04

What to do about it

  • Drive direct deposit or salary switching as the single activation event, since it is the mechanism that converts occasional to habitual use. Chime's own primary relationship definition treats one qualifying direct deposit of USD 200 or more as equivalent to 15 card purchases in a month, which tells you which lever the disclosure treats as load-bearing (Chime S-1/A).
  • Move the card to top-of-wallet with a category-limited rebate on two or three high-frequency merchant categories rather than a flat cashback. Flat cashback lifts spend per transaction; category caps lift transaction count, which is what this chart measures.
  • Instrument the web-to-app handoff with deep links into the specific in-app destination rather than the home screen. Web-to-app drives 41.8% of owned media conversions in Western European finance apps, and a user who has to restart the journey after install contributes zero transactions (AppsFlyer with Sensor Tower, 2026).
  • Add a recurring bill or subscription rail. Recurring transactions convert a cohort's transaction count from a decaying curve to a floor, and they do not need re-acquisition each month.
05

Sources

  1. Chime Financial (SEC Form S-1/A)Chime Financial, Inc. Form S-1/A · 2025 · n=1 platform, 8.6m active members at filing Defines a primary account relationship as 15 or more card purchases in a calendar month or one qualifying direct deposit of USD 200 or more, and defines payback as the point at which cumulative cohort transaction profit meets that cohort's acquisition cost. sec.gov ↗
  2. Nu Holdings (Nubank)Nu Holdings Ltd. Reports Fourth Quarter and Full Year 2025 Financial Results · 2026 · n=1 platform, 131m customers, 17m net adds in 2025 Monthly ARPAC reached USD 15.0 in Q4 2025, up from USD 11.1 a year earlier; monthly activity rate held at 83% and cost to serve at USD 0.80. international.nubank.com.br ↗
  3. Nu Holdings (Nubank)Nu Holdings Ltd. Reports First Quarter 2025 Financial Results · 2025 · n=1 platform, LatAm consumer base above 118m customers ARPAC of USD 11.2 blended with mature cohorts at almost USD 26, and a monthly activity rate of 83.2%. international.nubank.com.br ↗
  4. PayPal Holdings (SEC Form 10-Q)PayPal Holdings, Inc. Form 10-Q, quarter ended 30 September 2025 · 2025 · n=1 platform, 438m active accounts, 18.6bn payment transactions in nine months TPV of USD 458bn on 6.3bn payment transactions in Q3 2025, an average ticket near USD 73, with 438m active accounts. sec.gov ↗
  5. Block, Inc. (SEC Form 8-K, Q3 2025 shareholder letter)Block, Inc. Form 8-K, Exhibit 99.1, third quarter 2025 · 2025 · n=1 platform, USD 67.2bn Square GPV, 58m Cash App monthly transacting actives Cash App gross profit per monthly transacting active reached USD 94.16 annualised in Q3 2025, up 25% year on year, with 8.3m primary banking actives. sec.gov ↗
  6. AppsFlyer, with Sensor Tower and Google AdsWhere European Finance Apps Win or Lose Users (State of Finance for Marketers: Europe 2026) · 2026 · n=approximately 300 European finance apps, 2.4bn installs and USD 1bn of UA and remarketing spend, Q2 2024 to Q1 2026 European finance installs reached 960m in 2025 with 0.4% growth; banking app users spent about 12.5 hours per download in early 2026 against 8.8 hours for investment and money management apps; web-to-app drove 41.8% of owned media conversions; nearly one in two Western European investment app installs was flagged as fraudulent. appsflyer.com ↗
  7. Business of AppsFinance App Benchmarks · 2026 · Aggregated finance app benchmark set, top-50 finance apps by installs in Tier-1 Western markets Finance apps average 4.2% day 30 retention with stock trading highest and payments lowest; about 14% of finance app users complete all activation steps by day 30. businessofapps.com ↗
  8. SparkNeobank Business Models: How Challenger Banks Actually Make Money · 2026 · Cross-company analysis of disclosed neobank financials (Chime, Monzo, Revolut, Nubank, SoFi) Chime reported 9.5m active members at an ARPU of USD 257 on FY2025 revenue of USD 2.19bn; Monzo posted FY2025 revenue of GBP 1.2bn across 12.2m customers; Revolut customer balances rose 66% to USD 67.5bn. spark.money ↗