In an era where smartphones consume hours of daily life, one company has flipped the script: Instead of users only paying for subscriptions for their data plans, the devices pay them back. Mode Mobile offers a platform that rewards people for screen time spent scrolling, streaming, and swiping.
Through its EarnOS software and EarnPhones, the company's business model turns passive phone use into real money. Mode stands out as a pre-IPO opportunity in consumer tech. Yet despite its interesting value proposition, the company remains largely under the radar.
Let's explore what Mode does in more detail and why investors might consider investing in it down the road.
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What does Mode Mobile do, and how does the company make money?
Mode Mobile differs from traditional fintech apps because the company isn't as focused on lending or payments. Mode monetizes attention as users earn points from everyday activities such as playing games, listening to music, watching videos, or even charging their devices. These points can be redeemed for cash or gift cards to major retailers such as Amazon, Walmart, and Target.
Brands and advertisers pay Mode for targeted user attention and engagement, much like the ad campaigns you see on social media networks. Additional income stems from direct-to-consumer device sales, original equipment manufacturer (OEM) partnerships, and a suite of financial services embedded within the app's ecosystem.
Taking a look at Mode Mobile's acquisitions
Mode Mobile is deliberately building a diversified ecosystem through acquisitions. Late last year, the company bought NGL, an anonymous social-messaging app heavily used by Gen Z. The idea here was simple: by tucking NGL's user base into the EarnOS platform, Mode instantly gained a young, highly engaged audience on smart devices.
Building a super-app portfolio spanning mobile software, hardware, media, and finance has the potential to compound user value by boosting retention, utilizing cross-promotion efforts, and gathering valuable data. In turn, Mode could be well on its way to creating a global network where screen time consistently pays off. In essence, the company is quietly building a full-spectrum infrastructure tailor-made for the attention economy.
How to invest in Mode Mobile
Indeed, the fintech landscape is beyond crowded. From neobanks like SoFi Technologies (SOFI 1.47%) and Chime, to buy now, pay later services (BNPL), to crypto exchanges like Coinbase Global and Robinhood Markets, there is no shortage of companies vying for your money.
Mode's hybrid model spanning hardware, consumer rewards, and adtech doesn't fit neatly into any single financial services vertical. As a result, it remains in the shadows of legacy banks and financial infrastructure developers.
For those who are intrigued, investing remains possible -- albeit elusive -- even though Mode is still a private company. Its Regulation A offering is open to all investors, meaning that no accreditation criteria is required. Shares are available directly through the company's investor portal at a current minimum of roughly $2,000.
With all of this said, investing in pre-IPO shares of any start-up carries outsize risk, including illiquidity, execution challenges, and potential volatility on secondary markets. Safer alternatives to Mode Mobile include publicly traded giants like PayPal or Block -- both of which offer exposure to digital payments and rewards programs.
While Mode Mobile's story is interesting, exercising patience and monitoring whether the company's ambitions bear fruit at scale remains the wiser path for most portfolios.
