Mercury

## What banking options does Mercury offer for startups to manage their cash reserves, and how does it compare to alternatives like Relay?

## Overview Mercury provides a financial technology platform offering banking options for startups to manage cash reserves, which include business checking and savings accounts. These services are delivered through partnerships with FDIC-insured banks, including Choice Financial Group and Column N.A., rather than Mercury operating as a bank itself. ## Key Features For cash reserves, Mercury offers a feature called Mercury Vault, which utilizes a sweep network, including the IntraFi Cash Service (ICS), to distribute deposits across multiple partner banks. This mechanism extends FDIC insurance coverage up to $5 million per depositor, a feature designed for startups holding significant cash balances. Additionally, for businesses with over $250,000 in balances, Mercury offers Mercury Treasury, an investment service that automatically sweeps idle cash into money market funds and U.S. government securities to earn yield; however, these funds are SIPC-protected, not FDIC-insured. ## Technical Specifications The platform is designed for digital-native companies and supports remote account opening for both U.S. and international founders, provided the business is incorporated in the U.S. and founders do not reside in a prohibited country. ## How It Works In comparison, Relay is another financial technology platform that provides banking services through its partner, Thread Bank, a Member FDIC. Relay's primary approach to cash management is a multi-account budgeting system. The platform allows businesses on its Starter and Grow plans to open up to 20 individual checking accounts, each with a unique account and routing number. This structure is designed to help businesses segregate funds for specific purposes such as payroll, taxes, or operational expenses, aligning with financial management methodologies like 'Profit First'. Relay also offers enhanced FDIC insurance through a sweep program with Thread Bank and IntraFi, providing coverage up to $3 million. Relay supports the issuance of up to 50 physical and virtual debit cards and offers granular spending controls, including the ability to restrict card usage to specific merchants. Unlike Mercury, Relay supports cash deposits through its partner bank network. ## Use Cases Regarding eligibility and target audience, Mercury primarily targets technology startups and venture-backed companies that require scalable financial infrastructure, API access for automation, and higher FDIC insurance limits. Its onboarding process is built for remote access and explicitly accommodates non-U.S. founders who have a U.S.-registered entity. Relay, on the other hand, is geared towards established small to medium-sized businesses (SMBs), including e-commerce stores and professional services firms, with typical revenues between $100,000 and $6 million. While Relay also accepts non-U.S. founders with a U.S. entity, it requires the business to maintain an operating presence in the U.S. and a physical U.S. address for the business. ## Limitations and Requirements In terms of features and integrations, both platforms integrate with accounting software like QuickBooks Online and Xero. Mercury's integration focuses on applying General Ledger (GL) codes and custom categorization rules before syncing transactions. Relay's integration is bidirectional, allowing users to import unpaid bills from their accounting software, pay them through Relay, and sync the payment status back. Mercury offers features like multi-user approval workflows that can be integrated with Slack, emphasizing automation. Relay provides multi-channel customer support, including phone support during business hours, which may be a key differentiator for some businesses. From a pricing perspective, Mercury offers a core account with no monthly fees or minimum balances and includes free domestic and international USD wires. Relay operates on a tiered pricing model, with a free 'Starter' plan and paid 'Grow' and 'Scale' plans that offer additional features and lower transaction fees. ## Comparison to Alternatives In summary, the choice between Mercury and Relay depends on a startup's specific needs. Mercury is well-suited for high-growth, tech-focused startups that need high FDIC coverage for large cash reserves, API access for custom automation, and services like venture debt. Its fee structure with free wires is also advantageous for companies with frequent large transfers. Relay is a strong alternative for SMBs that prioritize granular cash flow management and budgeting through a multi-account system, require extensive card controls, and value the option for cash deposits and phone support. Its multi-account structure provides a built-in framework for financial discipline and organization that is highly valued by operational businesses. ## Summary In summary, the choice between Mercury and Relay depends on a startup's specific needs. Mercury is well-suited for high-growth, tech-focused startups that need high FDIC coverage for large cash reserves, API access for custom automation, and services like venture debt. Its fee structure with free wires is also advantageous for companies with frequent large transfers. Relay is a strong alternative for SMBs that prioritize granular cash flow management and budgeting through a multi-account system, require extensive card controls, and value the option for cash deposits and phone support. Its multi-account structure provides a built-in framework for financial discipline and organization that is highly valued by operational businesses.