Case Study: Varo Bank drives primacy with Pinwheel Switch Kit
Key results
The challenge
For Varo Bank, switching direct deposit is a critical activation step, but recurring bill payments remain one of the biggest barriers preventing customers from fully transitioning to a new bank. Without a unified solution combining direct deposit and bill switching at account opening, customers were more likely to keep legacy banking relationships, delaying full activation and limiting primacy.
The solution
In January 2026, Varo became the first customer to launch Pinwheel Switch Kit, which combines Deposit Switch with a Bill Switch experience in a single onboarding flow. At account opening, Switch Kit surfaces active payroll records for two-click deposit switching and identifies major recurring bills eligible to switch, letting consumers change payment sources without leaving the bank's app.
“Having a delightfully simple account activation journey has been core to our strategy, with deposit and bill switching being key drivers of profitability. Varo customers who use Pinwheel to switch direct deposit and recurring bills hold higher account balances, make higher dollar value transactions, and become our most engaged and highest LTV customers over time.”
CRClaudia RichterGeneral Manager of Savings and Deposits, Varo Bank
The results, in context
Varo reported that 40% of users who linked external accounts and had recurring bills auto-identified went on to switch at least one bill, and that bill switchers transitioned two recurring bills to be paid from their Varo account on average. Varo also found that customers who used Pinwheel to switch both direct deposit and recurring bills showed higher account balances, higher-value transactions, and deeper engagement over time.